Virgin Mobile USA has inaugurated a new prepaid offer called Virgin Mobile Custom, which allows its customers to build, share and manage plans for up to five lines without a contract. Users are able to activate five lines for US $6.98 per line per month, select a designated Custom device and activate it on the Base plan, which includes 20 SMS and 20 voice minutes, or on the Unlimited plan, which provides unlimited SMS and voice for US $35.00 per month. Additionally, subscribers are allowed to adjust the selected plan at any time during the month by adding any of the available add-ons (such as unlimited SMS or voice, or unlimited access to Facebook, Pandora, etc.). Initially the offer will be available on three devices: ZTE Emblem for US $79.88, LG Pulse for US $99.88 and LG Unify for US $129.88. Virgin Mobile Custom will be exclusively available at Walmart stores.
In the very competitive U.S. market, more and more operators offer services that no longer require long-term contract subscriptions, as customers prefer flexibility, especially when it comes to selecting a network provider and purchasing mobile devices. Moreover, as we have written previously, operators in highly competitive markets very often create plans that target specific groups of users. The new offer introduced by Virgin Mobile follows all of those strategies, as it allows the cost-conscious customers to fully customize their plans without forcing them to sign annual contracts. The substantial number of optional add-ons will likely make the offer even more appealing to consumers. We believe that this offer could bring in some additional revenue by providing services and devices at relatively low cost.
“Based on the most recent reports, more and more operators are introducing customized packages that are available to their postpaid as well as prepaid subscribers. UAE Etisalat and Virgin Mobile USA customers prefer to build their own plans according to their individual needs. We believe that this is a good approach, as it provides flexibility and allows the customers to control the cost. Additionally the operator is able to fully utilize its network and bring in some additional revenue.”
Padma Ramanathan, Analyst at Tarifica
The above item appeared in a recent issue of The Tarifica Alert, a weekly resource that analyzes noteworthy developments in the telecoms industry from around the world. To access all of the latest articles and issues: http://www.tarifica.com/TarificaAlert.aspx
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