By Marcin Sobczyk

WARSAW--Billionaire Richard Branson's Virgin Mobile on Wednesday launched a pre-paid mobile phone service in Poland, and said it plans to expand elsewhere in Central and Eastern Europe.

"Virgin Mobile Central and Eastern Europe is a new regional company in the Virgin group," said Kristian Myrup, the unit's head. "We are looking into expanding our business into Poland obviously, but also potentially to Turkey, Russia, Hungary and others."

Virgin will operate as a mobile virtual network operator, using the infrastructure of rivals Orange and Play. The Orange mobile network is operated in Poland by Telekomunikacja Polska SA (TPS.WA), which is controlled by France Telecom SA (FTE.FR). The two other large operators of physical mobile networks are Deutsche Telekom SA's (DTE.XE) PTC, which uses the T-Mobile brand, and homegrown operator Polkomtel SA, which markets its service as Plus.

Virgin is entering a saturated market--at the end of second quarter, there were more than 52 million active mobile phone cards in a country with a population of around 38 million, according to Poland's statistics office. Some of the active cards are used solely for data transfers.

The U.K. company's Polish unit plans to have at least a million customers within three years, it said. A minority stake in the firm is held by Dirlango, a venture owned by Lukasz Wejchert, a former executive of Polish television broadcaster TVN SA (TVN.WA) and a former shareholder in TVN's owner, ITI Group.

Write to Marcin Sobczyk at marcin.sobczyk@dowjones.com

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