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.
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