New Virgin Contract Deals to be Launched

[3GScottishUser]

From Mobile Today (29/04/2005):

Mobile has learned that Virgin’s long-anticipated contract offer will be launched next week, with airtime prices that will automatically drop at the end of the 12-month term.

The Carphone Warehouse has signed a three-month deal to be the exclusive indirect channel – a move that is likely to infuriate rivals, coming on the heels of the retailer cornering the market in Nokia 6630s.

Virgin plans to target the 30% of consumers who opt for contracts but represent an estimated 70% of consumer mobile spending.
The contracts offer the prospect of a free phone on Virgin for the first time, but the biggest change is the discounting that follows the end of the contract.

While the tariffs closely match Virgin’s existing prepay deals, after the first year the monthly fee will be discounted by as much as 50%, reflecting the fact that the customer has paid off any handset subsidy. As part of the deal, Virgin has made an early play for the extended contract market, offering preferential rates for those that sign on for 18 months. The initial Carphone launch is expected to be promoted with half-price line rental deals on selected contracts.

Virgin Mobile sales director Graeme Hutchinson declined to comment on the story but said: ‘Virgin Mobile said it would launch a contract and we will. And when we do it’ll be completely different from anything you’ve seen before.’

http://www.mobiletoday.co.uk/artman-...icle_338.shtml

[solo12002]

Im confused by Virgin?

They have call rates of 15p for first 5 mins then 5p after that,no matter how you pay ie pre or post pay.

Why would anyone wish to take out an 18 month contract and end up paying a month charge just to get a phone? and end up being tied into a contract.

I love the Virgin network, the CS, free voicemail, but if I was going to end up on a contract I would maybe go for the 02 online 30 day one on o2 rather than being tied up for 18 months, more so with 3g comming even on the Virgin network.

[Ben]

Indeed, Virgin's ideas sound good, but O2's 30 day contracts sound far more like where the industry should be headed.