Virgin Mobile USA Offers a Year of Service for US $1.00

The MVNO Virgin Mobile USA has launched a new iPhone-only offer in which customers will get one year of unlimited talk, text and data on Virgin Mobile’s nationwide network for US $1.00. That offer is valid through 31 July; those who join after that will get six months of service for the same price. After the promotional service periods end, the service will cost US $50.00 per month.
 
For a limited time, members of Virgin Mobile’s “Inner Circle” loyalty program will also be able enjoy a number of benefits including a round-trip companion ticket to the U.K. on Virgin Atlantic, one night’s stay at Virgin Hotels, savings of US $170.00 on an introductory offer to Virgin’s wine club, up to 20 percent off Virgin America flights and 20 percent off the Virgin Sport San Francisco Festival of Fitness.
 
With this offer, Virgin becomes the latest operator to sell its service in Apple stores and through Apple’s website, and it becomes the first iPhone-only operator in the United States.
 
 
Virgin is making a bold, attention-getting move to jump ahead in the U.S. MVNO market, in which its competitors include AT&T’s Cricket Wireless and T-Mobile’s MetroPCS. Without a doubt, a nearly-free-of-charge offer of a year’s unlimited service should make potential customers sit up and take notice, and the tight deadline for the full 12-month promotional period is obviously designed to pull in the lion’s share of new subscribers rapidly. If those subscribers can be converted to US $50.00-per-month subscribers after a year, the operator will have scored a significant victory.
 
In order to do that, though, Virgin Mobile will need to meet subscriber needs over time in ways other than just price. And in this respect, we are not sure whether they will be able to do so. For one thing, the term “unlimited” for this service is a bit of a misnomer—the speeds of customers who use more than 23 GB of data during a single billing cycle will be throttled as needed, depending on usage in the customer’s geographical area. In addition, there are concerns about domestic roaming: For areas to which Virgin’s coverage (on Sprint’s network) does not extend, subscribers will get 800 roaming voice minutes and 100 MB of roaming data, so subscribers would end up paying potentially hefty roaming surcharges after these modest limits are reached.
 
Another caveat: Until now, Virgin Mobile offered only Android phones to new subscribers, so the exclusive focus on the iPhone marks a major direction change that could positively affect the operator’s market position. However, the available iPhone models will be offered at retail price through Apple, not at a discount. In light of the extremely low introductory price of the plan, that may not be a problem, but then again it could be, simply in terms of cash flow, if payment has to be made in full up front as opposed to spread out over a 12- or 24-month period as with some of the major U.S. operators.
 
Finally, the incentives pertaining to the larger Virgin company’s non-mobile products and services, while no doubt appealing to some, are not likely, in our view, to be a major contributor to subscriber uptake, because of the fact that they are limited to just one brand. 







Tarifica is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile and fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance. 

To learn more about Tarifica, please visit www.tarifica.com 

Chile’s WOM Launches Its First 4G plans, Offers 100 GB of Free Data

Chilean mobile operator WOM has launched its first 4G plans, which will initially available to customers in the cities of Santiago and Vina del Mar. The service runs on the AWS band (1.7–2.1 GHz). Postpaid customers can subscribe to plans starting from 1.5 GB of mobile data per month for CLP 9900 (US $16.56), while prepaid customers will have access to 2 GB of data per month for a minimum top-up of CLP 3000 (US $5.02) per month. In addition, new and existing postpaid customers will be given 10 GB per month over a 10-month period (100 GB in total) on top of their contracted plans. At the launch event in Playa de las Salinas in Vina del March, the operator’s CEO, Chris Bannister, said the operator would continue revolutionizing the local mobile telecom market by rolling out the 4G service throughout the country by the end of the year. WOM has topped Chile’s porting figures since it launched in July, recording the largest monthly net customer gain in the country for the third consecutive month in September. Ever since it debuted in July 2015, WOM has waged an aggressive campaign to acquire market share in Chile, an effort that has so far proved very successful. WOM has used clever advertising (its name is an acronym that stands for “Word of Mouth”) and cultivated a youth-oriented image. Most importantly, though, it has been offering enticing data packages, a smart approach in this increasingly data-hungry market. In many ways WOM’s strategy and image resemble those of T-Mobile US, whose “Uncarrier” campaign relies on attention-getting marketing and aggressive offers. In the case of WOM, the result has been attracting subscribers away from rival operators: In September, for the third month in a row, the operator largest net monthly customer gain, adding almost 32,871 new users, up from almost 31,992 in August. Competitor Virgin Mobile, by contrast, attracted only 11,193 users in September, while Entel, Movistar and Falabella showed net losses of customers. Adding 4G/LTE is the next step for WOM, a step it must take in order to be fully competitive, so rolling out the service in the capital city and in one other market makes perfect sense. In line with its policy to date, the operator is giving away a huge amount of free 4G data—10 GB per month for 10 months—which should have the effect of jump-starting the high-speed service in terms of uptake. In addition, the included data in the plans is competitively priced. WOM has strength in its network holdings, inherited from predecessor company Nextel Chile, and is clearly bent on using it. We believe the current 4G/LTE strategy is a very good one.

Tarifica is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile and fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance. To learn more about Tarifica, please visit www.tarifica.com

Virgin Mobile Australia Introduces Data Rollover Service

Virgin Mobile Australia has introduced a data rollover service for new and existing customers. Subscribers will be able to rollover any unused data to the following month for use after that month’s data allowance is depleted. The operator is responding to a push from consumer groups as well as to results it received from a survey it conducted. Additionally, Virgin Mobile’s internal data logs suggest that while only 20 percent of its customers will exceed their data allowances in any given month, 40 percent will do so at least once during a six-month period.

Australia is served by three mobile operators and over 50 MVNOs. The country’s mobile penetration rate is over 130 percent, and although that figure continues to rise due to the use of multiple SIMS and connected devices by consumers, operators will need to develop innovative offers to increase revenue as well as to retain current subscribers and add to their base. These offers also need to meet customers’ needs, and Virgin Mobile received clear indication that losing data that was paid for was a clear grievance on the part of subscribers. According to David Scribner, chief executive of Virgin Mobile, Australian consumer groups asked to have rollover plans similar to those introduced by AT&T and T-Mobile in the U.S. We believe this is a good move by the MVNO, not only because it gives subscribers what they want but also because Virgin Mobile is the first operator in Australia to offer this option. And if satisfying consumers’ needs is a strategy for success, Virgin is bound to attract more new customers this way than with bundles with unlimited data or discounted rates, which Australia’s MNOs are offering.

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 or to speak with the research team: http://www.tarifica.com/contactus.aspx

Telkom Expanding Lead in Plans’ Consumer Value

A new Tarifica study shows Telkom expanding its lead over competing mobile operators in terms of providing the most consumer value for contract plans in South Africa. The results are based on value as measured by the Tarifica Score™, a proprietary algorithm that comprehensively weighs every feature of a mobile plan (including usage allotments, geographic coverage, data speeds, value added features and promotional elements) against the plan’s total costs in order to determine its precise consumer value relative to all other offers in the market. Scores range from 0 (worst) to 100 (best). The Tarifica Score™ was first deployed in South Africa in July 2014 and has been used to rank every contract mobile plan on a monthly basis since.  

After scoring is completed, plans are divided into two categories, “With Phone” and “SIM Only”,   then subdivided into five price segments, creating a total of 10 groups. Of these groups, Telkom’s plans led the field in October, achieving Tarifica “Top Value Plan” status in five groups. Cell C rated second best, winning three of the 10 price segments. MTN and Virgin Mobile were each able to earn just one “Top Value Plan” while Vodacom, after offering the top overall SIM Only plan in the market a mere two months ago, was shut out entirely. 

Commenting on the most notable development in the market during October, Melissa Mascarenhas, Tarifica’s South Africa Analyst, stated, “The addition of unlimited on-net data to Telkom’s SmartPlan 100, 200 and 500 plans with the purchase of a phone considerably enhanced the already solid consumer value of these offers. There simply is no similarly priced alternative in South Africa that includes the volume of allowances available with these plans. Given that Telkom already had the top Tarifica Scores in September, this new promotion served to further expand the operator’s lead.” 

“In today’s mobile marketplace, consumers are flooded with hundreds of plan variations and constantly shifting promotions and deals—the majority of which come with different costs and services and access networks of differing strengths. When making a decision that will likely impact them for up to two years, consumers can use Tarifica Scores to cut through the clutter and identify those plans in every market segment that offer the best value for the money,” stated Tarifica Program Manager, Will Watts.

To Contact Tarifica's Research Team:   http://www.tarifica.com/contactus.aspx

Promotions are the Critical Driver of Consumer Value for Australian Mobile Phone Plans

Tarifica  has announced the latest Tarifica Scores for postpaid mobile plans in Australia. The Tarifica Score™ is an advanced algorithm used to evaluate mobile plans based on the value they offer consumers.  It incorporates every aspect of each mobile plan (including usage allotments, geographic coverage, data speeds, value added features and promotional elements) and weighs them against each plan’s total costs to determine its consumer value. 

Based on the postpaid plans offered in September by operators Telstra, Vodafone, Optus and Virgin Mobile, Optus’ “My Plan Plus $60” continued to be rated highest in the ‘without phone’ segment while Vodafone’s “Red $80 Plan” still ran second.  Virgin Mobile’s $100 Plan displaced Vodafone’s “$100 Red Plan” as highest in the ‘with phone’ segment.

“The largest changes we saw in scores were driven by the addition or expiration of promotions,” said Sergey Fisun, Tarifica’s Australia Analyst.  “For example, Virgin Mobile’s best ‘with phone’ plan in June ($90/month) received a score of just 48 but its replacement plan ($100/month) led the market in September with a score of 100, displacing Vodafone.  The difference was due to the addition of 2 gigabytes of data per month plus a promotional bonus of another 1 gigabyte each month.  In short, Virgin’s slight increase in price was more than offset by its enhanced data offerings.”

In contrast, Vodafone ended its double data promotion and saw its highest scoring ‘without phone’ plan drop by 10 points while its best ‘with phone’ plan fell from the top spot in that category to second place with a score of 94.  In general, Vodafone’s lower priced ‘with phone’ plans now come with two months of unlimited data, which helped to lift their scores.  Its higher priced Red series, however, which switched promotions from double data for a year to unlimited data for two months, saw their scores decline.

Although Telstra’s plans still suffer from high costs relative to the volume of voice, SMS and data offered, many of its scores improved due to changes in its data promotion from a one time (one month) offer of an additional 25GB (which was considered by the Tarifica Score algorithm at much less than full volume due to its impracticality for most users) to an additional 500MB per month which is obviously of more value.  Telstra’s Mobil Accelerate XL plan improved from a score of 35 to 48 as a result of this change.

“In today’s mobile marketplace, consumers are flooded with hundreds of plan variations and constantly shifting promotions and deals—the majority of which come with different costs and services and access networks of differing strengths. When making a decision that will likely impact them for up to two years, consumers can use Tarifica Scores to cut through the clutter and identify those plans in every market segment that offer the best value for the money.  They can also see how plan values are affected by even small changes in promotional offers,” stated Tarifica Program Manager, Will Watts.

Ken Dolsky, Senior Program Director at Tarifica also commented on the market intelligence value to operators.  “We also see great interest in the Tarifica Score among mobile operators.  Tarifica provides access to its proprietary model which enables operators to design plans that score high in consumer-friendliness and value.  They are also able to quickly see, in quantitative terms, the impact that competitive changes have on the market.  While all the operators in a region may know that operator X has high prices and relatively slow speeds, the impact of improvements in such factors will be immediately apparent and responses can be formulated quickly.”

To Contact Tarifica's Research Team: http://www.tarifica.com/contactus.aspx

Virgin Mobile USA Launches New Offer for Prepaid Customers

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

Telkom Mobile and Vodacom Receive the Highest Tarifica Scores Among South Africa’s Mobile Operators

 Tarifica Scores for all postpaid mobile plans in South Africa are out. The Tarifica Score is an advanced algorithm used to evaluate mobile plans based on the value they offer consumers. Overall, the top two plans were Vodacom’s Smart S (with the +1GB data promotion) and Telkom Mobile’s Completely Unlimited plan, (with-phone version). In the analysis, plans were divided into five segments corresponding to their monthly costs, as follows: under R100, R101-R300, R301-R500, R501-R1000 and more than R1000. Each segment was further split into “With Phone” and “Without Phone” categories – creating 10 segments in all.

“Telkom Mobile’s plans stood well above those from other operators. It offered the best plan in four of the 10 market segments, and had competitive plans in several others. This success was largely driven by the company’s relatively low prices and generous data allowances,” stated Melissa Mascarenhas, Research Analyst at Tarifica.

As for other operators, while Vodacom was able to land one of the top overall spots with its +1GB promotion for the Smart S plan, it was only able to capture one other market segment (under R100 per month without phone). Comparatively, Cell C scored quite well in the mid-priced plans, winning three of the four segments between R301 and R1000, while MTN and Virgin Mobile struggled in most categories. But the latter was at least able to win the honors for best plan that included a phone for under R100 per month.

Tarifica Scores were calculated for every postpaid plan across all the major players in the South African mobile market. These scores provide objective, quantitative comparisons of mobile plans based on a consumer value-oriented approach. The Tarifica Score takes into account factors such as plan allowances (minutes, SMS, MMS and data), network speeds and value added elements, including data sharing, international calling allowances and roaming benefits. It is designed to produce clear apples-to-apples comparisons even in cases where plans appear quite different on their surface, thereby helping consumers understand which plans offer the best value for the money.
Compared to its competitors, MTN’s plans simply did not measure up. Not only did the company fail to win a single market segment, but the majority of its plans were ranked near the bottom of their respective groups. This poor performance was driven by a combination of relatively slow data speeds, high costs, limited features and low allotments. “In analyzing the market, we were surprised that so many plans from the largest operator provided such low value to consumers. We predict that as growing numbers of South Africans adopt more data-heavy usage habits, as is expected in the near future, MTN will either be forced to radically rework its plans or experience significant customer loss,” said Kenneth Dolsky, Tarifica Senior Program Director.

In today’s mobile marketplace, consumers are forced to weigh many factors against cost when purchasing a plan, including allowances for minutes, text messages and data, and the speed and coverage of the operator’s network. Operators are also constantly introducing new offers, special features and promotions that serve to further complicate the decision-making process. The Tarifica Score enables consumers to cut through the clutter and identify those plans in every market segment that offer the best value for the money.
Tarifica Scores were calculated for all the published plans offered by Cell C, MTN, Telkom Mobile, Virgin Mobile and Vodacom. Plan scores are available upon request.


Tarifica, a unit of T3i Group, has been the leading provider of telecom pricing information for close to four 
decades. It maintains the most robust, in-depth and up-to-date pricing database in the industry, which 
includes mobile and fixed line rates from over 400 operators in 85 countries, as well as historical data 
going back to 1997. Tarifica also produces reports, surveys, publications and custom analyses. Its clients 
include operators, regulators, enterprises and consultants in every region of the globe. For more 
information, please visit www.tarifica.com. 

Demand for Mobile Data Plan Customization is High

A survey of over 500 mobile phone users in each of six markets—China, France, Germany, Spain, the U.K. and the U.S.—indicates that consumers want more options to control and personalize the pricing of their data services. Sixty percent of mobile users want to be able to customize their plans, and 50 percent are interested in the ability to purchase more data directly from their devices, in real time.  Interest in plan customization is particularly strong in China (where 74 percent reported that they want it), the U.S. (67 percent) and the U.K. (58 percent). In China, interest in plan options for unlimited access to social media is especially high at 62 percent. In France, the number of users who are willing to accept continued use at lower speeds after data limits are reached is twice the number of those who would want to buy additional data. In Germany, over a quarter of mobile phone users see the appeal of buying an additional bucket of data beyond the original data cap. In Spain, mobile users are notably willing to accept continued use at lower speeds when they reach their data limit, with over half selecting throttling and only a fifth prepared to buy an additional data bucket. Forty-five percent express an interest in plans based on selecting how many minutes of browsing, video and music they use, rather than in a bucket of data.  As sophisticated markets reach saturation and mobile service becomes more and more of a commodity, competition among mobile operators is intensifying. As a result of that, consumers have more leverage than ever to demand what they want. As this study shows, what they want, by and large, is more control over their spending on data. The one-size-fits-all approach that derives revenue from charging users for data they do not use is likely a thing of the past. In the more affluent or aggressively growing economies such as the U.S., the U.K., Germany and China, the desire is more for flexibility, with users reporting that they would like the ability to add more data at will. In France and Spain, where budget-mindedness seems prevalent, users are more willing to accept throttling. In any case, in order to remain maximally competitive, MNOs are going to have to acknowledge these consumer needs and offer more customization across the board.

The above item appeared in a recent issue of Tarifica's "The Story of The Week", a weekly report that analyzes noteworthy developments in the telecoms industry from around the world. For past issues or to learn more about The Story of The Week :  http://www.tarifica.com/storyoftheweek.aspx

Mobile Telecommunication Developments Worldwide

Asia/Pacific

According to a recent report, mobile data use will become the key revenue driver for operators in Malaysia and will exceed mobile voice revenue in 2017. The growth will result from an increase in 4G LTE service, lower-end smart devices and affordable data offerings from operators. Robust media content that is becoming more and more available to users will also drive data use in the country.

Europe

U.K. mobile operator EE has launched what it says is the world’s first pop-up retail bundle. The MNO has partnered with Appear Here—a company that rents vacant spaces to businesses—the British Retail Consortium and entrepreneurs to launch the Pop-UP UK bundle. The bundle, which costs £11.25 (US $19.20) per month, includes 4G service for 30 days and discounts on products outside the telecom industry that are suitable for pop-up businesses. According to a recent report, pop-up retailers contribute £2.1 billion (US $3.58 billion) to the U.K. economy each year. The figure is expected to grow by 8.4 percent over the next 12 months; however, the report indicates that the sector could experience double-digit growth with improved technology. By using EE’s 4G network on their mobile devices, pop-ups can receive mobile payments, connect with customers via social media and securely access data from cloud storage.

Latin America

A recent study that involved the 100 top commercial banks in Latin America has indicated that approximately 92 percent of these institutions will offer mobile banking services by the end of 2014. Through 2013, 80 percent of the region’s banks had offered mobile banking services. In addition to the increased number of banks, there has been an increase in the types of mobile financial services that are being offered.

Middle East/Africa

Etisalat Nigeria has launched Vringo, a video ringtone service that is available on Android phones. To use the service, subscribers can download the app, which will enable their devices to play a video clip (sound included) instead of an audio clip as a ringtone. The content of the available video clips includes movies, musicals, comedy and football. The service costs NGN 100.00 (US $0.62) per month, and subscribers will receive the first month at no charge.

North America

U.S. operator Sprint has partnered with PlayPhone, Inc., a global mobile social gaming developer, to offer gaming content to prepaid customers of the operator’s MVNOs Boost Mobile and Virgin Mobile USA. The service is an add-on feature and will be charged as a flat rate. This collaboration will enable game developers to reach the prepaid market, a budget-conscious sector of the customer base that may hesitate to use credit cards, and as a result may not previously have had access to gaming content.

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

Tarifica Score Launched With Ratings of Australian Postpaid Plans

Tarifica the U.S.-based telecom research and analysis firm, announced ratings for all the major Australian mobile operators’ postpaid plans, created with its recently launched comparison tool, the Tarifica Score. The highest scores were achieved by Optus and Vodafone, which ranked significantly ahead of competitors Telstra and Virgin Mobile. The top score among plans that included a phone went to Vodafone’s $100 Red Plan with Double Data Promotion, while in the without-phone category the highest score was achieved by Optus’ $60 My Plan Plus. These scores provide objective, quantitative comparisons of mobile plans, based on a consumer-value-oriented approach, and are generated by a proprietary mathematical model. Among the factors taken into account are plan allowances (voice minutes, SMS, MMS and data), network speeds and value-added elements such as data sharing, international calling allowances and roaming benefits.   

Optus’ plans received high scores because they combined large data allowances with relatively moderate prices. Vodafone’s high scores were driven by the combination of its “Double Data” promotion and its network’s fast 4G download speeds, which dwarfed that of the competition. Although it is the largest mobile operator in the market, Telstra’s plans were simply too expensive to compete with the value offered by Optus and Vodafone. The algorithm used to calculate Tarifica Scores awarded a high number of points to Telstra’s plans because of the operator’s wide geographic coverage, but even with this bonus, its plans did not include anywhere near the allowance volumes available in similarly priced plans from Optus and Vodafone. 

The Tarifica Score, which assigns a single number to each plan analyzed, is notable for making possible “apples-to-apples” comparisons between offerings that may on the surface appear to be quite different from each other. By doing so, it allows consumers to determine which plans offer the best value for the money. For mobile operators, the Tarifica Score offers several advantages: First, it allows in-house evaluation of plans’ market potential against an objective, algorithm-based third-party analysis provided by a firm with years of institutional knowledge and experience as well as relationships with major industry participants around the world. Second, Tarifica will work with operators to analyze plans prior to their launch so as to ensure the highest possible score. Third, the score is an excellent marketing tool by which operators can communicate to consumers, in simple, quantitative terms, the actual value of their offerings. Fourth, it can be supplied to regulators as a way of addressing concerns about the value and fairness of plans. Finally, for a deeper understanding of a plan’s place in the larger telecom world, Tarifica offers a modification that will allow a plan to be compared across markets. In addition, both operators and consumers can benefit from having the Tarifica Score segmented according to various metrics such as cost, device inclusion or regional availability.

Tarifica Scores can be calculated for any of the 85 countries Tarifica tracks.

The above item appeared in a recent issue of Tarifica's "The Story of The Week", a weekly report that analyzes two noteworthy developments in the telecoms industry from around the world. For past issues or to learn more about The Story of The Week :  http://www.tarifica.com/storyoftheweek.aspx   Photo by Abd allah Foteih on Flickr