Virgin Mobile Jumps Into Flat-Rate Fray

  • June 25, 2008
Virgin Mobile USA is joining the major wireless carriers in offering a flat-rate plan. Starting July 1, it will offer an unlimited calling plan for $80 a month with no annual contract. Unlimited text and messaging is thrown in for another $10 a month.

That would price Virgin Mobile's new "Totally Unlimited" plan below the $100 flat-rate ones offered by Verizon, AT&T and T-Mobile USA and roughly on par with Sprint's $90 plan for unlimited voice and data. The biggest difference, of course, is that Virgin is a pre-paid service and the other carriers' plans require a contract.

Like its competitors, Virgin Mobile is looking to attract new customers with its flat-rate plan. Last month, the company reported net income dropped 75% to 4.7 million in the first quarter because of growing competition for prepaid customers. It also forecast net customer losses of between 130,000 and 160,000 in the second quarter.

--Mark Walsh



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