A Virgin spokesman confirmed the company's intention: "We are seriously considering opportunities in both fixed line and mobile."
While details are not yet available, the spokesman said Virgin was "seriously considering" a bid for a Universal Mobile Telephony (UMTS) license. The DTI is currently inviting bids for five licenses. The awards will be announced later this year.
BT is upbeat about Branson's potential entry into the market: "We've had competition for a number of years and are geared up to working with and against the competition. The more the merrier," he said.