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3GScottishUser
30th March 2007, 11:22 AM
Virgin Mobile is trialling a six-month contract proposition to capitalise on the number of customers frustrated with lengthy 18-month deals.

Virgin is offering Sim-only contract deals on The Carphone Warehouse's discount website, e2save.com, and in the retailer's stores. The trial will last for three months before Virgin considers a more permanent proposition and the possibility of bundling in a cheap phone.

The tariff offers a customer 150 minutes and 150 texts per month for £15, but no handset.

Virgin said: 'We want to give customers more choice and flexibility. People are tied into 18-month contracts, but with this deal they can keep their phone and pay just £15 per month. It is the same value as our £25 contract. We hope to shake things up a bit.'

Virgin said customers would not move from a £25 tariff for the cheaper option as 'some people do not want a Sim-only contract'.

Retailers and operators have been frustrated amid a slow contract market as many customers are now locked into 18-month agreements.

Phones 4u and Carphone are both offering to buy customers out of the last few months of their bills if they sign up to new contracts.

A senior retail chief predicted that one network would 'break ranks' and bring back shorter deals. Orange started pushing 12-month contracts earlier this year, in response to demand from customers who tried 18-month deals for the first time and decided to go back to a shorter agreement.

A retail source said: 'The purchase frequency has deteriorated. It is far more complex trying to get people out of 18-month contracts.'

The problem has also prompted many contract customers to buy their preferred handsets on subsidised prepay deals, but discard the prepay Sim.

The retail source added: 'A lot of consumers on their first 18-month contracts are realising it wasn't such a good idea. They may have got a good deal, but they are not getting a new handset as often as they would like.'

http://www.mobiletoday.co.uk/content/15987.asp?men=0&sub=1

gorilla
30th March 2007, 11:31 AM
This seems ideal for me. I wonder if O2 or Vodaphone will reduce their sim-only tariffs to compete?

Ben
30th March 2007, 11:51 AM
What's the point of any contract term on a SIM-Only deal?

The whole point of a contract term is to spread the subsidy of the handset. If there's no handset, there's no need for a contract. Vodafone can do 30 days, why can't Virgin?

Nice value, pathetic reasoning. Unless you get a free upgrade after the 6 months? No, didn't think so.

*confused*

gorilla
13th April 2007, 11:20 AM
I take your point Ben, but look at this offering from e2save (http://www.e2save.com/mobile/phones/disphandset.php?network=virgin&handset=VMOBPMSIM).
Effectively 6 months free, so nothing to loose really!

Ben
13th April 2007, 11:26 AM
Lol, that's crazy! Virgin Mobile really are desperate for customers... not quite desperate enough to chuck in a free handset a la 3, but pretty desperate all the same.