The company was the world's first Mobile Virtual Network Operator, launched in the UK in 1999. It does not maintain its own network, and instead has contracts to use the existing network(s) of other providers. In the UK, Virgin Mobile uses the T-Mobile network. In the US, the Sprint network is the carrier. In Australia, Virgin Mobile operates on the Optus network. In Canada, it uses the Bell Mobility network. These networks use different technology (GSM in the UK and Australia and CDMA in the US and Canada).

It is currently in talks with Cell C, the third cellular network operator in South Africa to launch a similar service there.

In all countries, Virgin Mobile offers only prepaid (pay as you go) service, although the company has recently added a contract option in the UK and Australia. Already very common in Britain at the time of Virgin Mobile's launch, prepaid wireless service was a very small part of the US wireless market (and is still, in terms of market share, much less common compared to Europe).

In 2004, the Virgin Group floated Virgin Mobile on the London Stock Exchange, retaining a 72% stake.

NTL merger

In December of 2005 Virgin Mobile disclosed that NTL had launched a bid to buy the entire company, hoping to rebrand NTL's cable business as Virgin if the merger was consummated, after it had completed its merger with Telewest. The offer, of 323p per share, valued the firm at £817m and was rejected as too low, although the merger was supported by the Virgin Group. If the merger goes through, the Virgin Group will swap its 72% stake for a 14% shareholding in the USA- listed NTL Inc.

The offer was increased in January 2005, to £961m, or 372p per share, which will be formally made after the completion of due dilligence. This offer has been broadly supported by the Virgin Mobile Board and the minorities.