Virgin in phone talks

The expanding Virgin group has just started flights to Las Vegas

Sir Richard Branson's Virgin Group is in talks with international mobile operators to try to beat rival Orange in going global, according to a report.

The Observer said that Virgin was in talks with German, Japanese and US mobile operators over a series of potential deals worth at least $2bn.

The paper said Virgin planned to invest about £200m in global ventures as part of a strategy to expand internationally over the next three years.

"We are trying to beat Orange to be the first global mobile phone company," the Observer quoted Sir Richard as saying.

"We are a long way behind, but we will be first. We are not far from announcing Japanese, US and European network partners," he said.

Virgin mobile executives have started talks with Deutsche Telekom about a possible partnership, which would involve expansion into France, Italy and Spain.

Virgin has also begun informal discussions with Japanese mobile giant, NTT Docomo.

In the US, the company is eyeing joint venture with the three operators closest to offering coast to coast networks - MCI Worldcom, Bell Atlantic and SBC Ameritech.

Asian expansion

The news follows Virgin's recent announcement that it was set to sign a $1bn deal with a Singapore Telecommunications' subsidiary, Sing Tel Mobile, to provide mobile and internet services in Asia.

At the time, Sir Richard said Virgin wants to become the first global consumer brand in mobile telephone services in Asia, which lacks regional mobile brands.

The Virgin group has built itself into a lucrative brand name, spanning music, transport and consumer goods.

Sir Richard was in Las Vegas over the weekend to inaugurate Virgin Atlantic non-stop air service between the city and London.

He was also meeting with local business leaders to explore building a resort in Las Vegas.

"I have three or four appointments to look at some fun ideas while I'm here," he said.