Helio wants the deal because it will put them into the prepaid market and Virgin wants the deal because it will put them in the subscription market. They also feel that a combined company will give them more clout with Sprint — or T-Mobile if Sprint get purchased. If Sprint is not purchased, look for the combined company to inject a few billion into Sprint and also giving them a 20-30 percent stake in the new firm.

It may well be. Aflame, too, are the sentiments of Wikipedia's volunteers, many of whom are already enraged by Wales's jetsetting ways. For Wales, the gathering had an added attraction: After lunch, Branson took a party by catamaran to Mosquito, where women in bikini danced on the beach. "Normally the girls would be naked, but the prime minister is here," said Branson.

(Image via Wikimedia Commons)

Virgin Mobile, unlike the big carriers, rents a wireless network rather than owning one, essentially gussying up and reselling Sprint's service under its own name. It's a challenging business model, known in the trade as being a "mobile virtual network operator" or "MVNO." Disney and Amp'd, among others, have failed to make a go of it.

Renting one's network means lower capital costs, and according to the Wall Street Journal, Virgin has 4.83 million subscribers and actually made a small profit this year. Virgin Mobile has plenty of revenue, but with a flat IPO today and loads of debt, it is unclear if it can make itself into a viable company.

Disney Mobile shut down last month and Amp'd burned through hundreds of millions of dollars with nothing to show for it. History does not look good for Virgin, but with strong name recognition among their target market and clever advertising, we don't put it past Sir Richard to succeed where others have failed.

(Photo by AP/Jacques Brinon)