Virgin Mobile USA is stepping up the competition in the prepaid market with a new $50 calling plan – down from $80 – and a program for customers who become unemployed.
New network rates obtained from network service provider Sprint allow the MVNO to pass savings on to customers, the company says. The new price plan goes into effect on April 15.
The new $50 plan (technically, Virgin refers to it as $49.99), is competitive with that of Boost Mobile, the prepaid arm of Sprint. Unlike Boost, however, Virgin Mobile says its pricing excludes taxes and surcharges. Boost says taxes and surcharges are woven into its $50 offer.
As for the “Pink Slip Protection” for the unemployed, Virgin says once a customer has been with Virgin Mobile at least two months on a monthly plan, he or she becomes eligible for the protection due to job loss. Virgin will cover the cost of the plan, including taxes and surcharges, for up to three months. Customers need to prove eligibility through state unemployment benefits.
The company says Pink Slip Protection also will apply to its new Texter’s Delight program, designed for those who text more than talk.
Giving special deals to customers who lose their jobs is a feature unique to Virgin Mobile in the United States, but operators in other countries, notably Telefonica in Spain, also are offering deals for people who become unemployed.
Meanwhile, the U.S. prepaid market is showing signs of growth amid the weakened economy. Earlier this week, MetroPCS reported 684,000 net additions for its first quarter, the highest quarterly net additions in the company’s history. The company also launched GroupLINES, a one-call solution that targets consumers who want to replace their landlines with wireless.
Leap Wireless International/Cricket Communications also is upping its strategy, with more new market rollouts planned for this year and the expanded distribution of an off-the-shelf phone in Wal-Mart stores.