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Virgin Mobile USA was formed in 2000 in San Francisco. In July 2000, John Tantum and Dave Whetstone pitched Richard Branson on entering the U.S. market after Virgin had successfully launched Virgin Mobile in the United Kingdom in 1999. At that point, the U.S. team began pitching the U.S. mobile operators on the concept of an MVNO, which at the time was not well understood. The MVNO concept Virgin Mobile was pitching to mobile operators was a joint venture, where both parties would have aligned incentives, rather than the often-contentious relationship that mobile operators had with resellers. A joint venture was created between Virgin Group and Sprint Corporation, and Dan Schulman was brought in to run the business. Virgin Mobile USA began operating in the summer of 2002. Because prepaid mobile had a downmarket perception at the time, Virgin Mobile USA called its service "pay as you go."
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In 2008, Virgin Mobile USA acquired Helio, Inc., a competing mobile virtual network operator (MVNO) also hosted on the Sprint network, aimed at post-paid, contract users. By late 2009, Virgin Mobile USA ceased selling new Helio phones or service, dropping the Helio name.
Customers who already owned an iPhone were able to bring it to Virgin Mobile USA if it was compatible. From February 2018, grandfathered customers without the iPhone-only Inner Circle plan remained eligible to purchase Android devices, feature phones and mobile broadband modems.
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