Virgin Mobile USA: Difference between revisions
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Under the Virgin Mobile brand, Virgin Mobile USA, Inc. provides [[Prepaid mobile phone|prepaid]] wireless voice, messaging and broadband data services to subscribers throughout the United States via the Sprint Nextel [[CDMA]] [[Personal Communications Service|PCS]] network. Virgin Mobile USA targets younger customers or those who do not want to pay inflated monthly fees, offering some of the cheapest plan rates in the industry and does not require customers to enter into a contract. Virgin Mobile handsets and broadband access devices are available on line and at more than 40,000 retail partner locations including [[Best Buy]], [[RadioShack]], [[Target Corporation|Target]] and [[Wal-Mart]] stores. Virgin Mobile top-up cards are available on line and in 150,000 retail locations nationwide. |
Under the Virgin Mobile brand, Virgin Mobile USA, Inc. provides [[Prepaid mobile phone|prepaid]] wireless voice, messaging and broadband data services to subscribers throughout the United States via the Sprint Nextel [[CDMA]] [[Personal Communications Service|PCS]] network. Virgin Mobile USA targets younger customers or those who do not want to pay inflated monthly fees, offering some of the cheapest plan rates in the industry and does not require customers to enter into a contract. Virgin Mobile handsets and broadband access devices are available on line and at more than 40,000 retail partner locations including [[Best Buy]], [[RadioShack]], [[Target Corporation|Target]] and [[Wal-Mart]] stores. Virgin Mobile top-up cards are available on line and in 150,000 retail locations nationwide. |
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Virgin Mobile USA operates independently of other Virgin Mobile licensees in other countries. |
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== Company history == |
== Company history == |
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Revision as of 11:30, 3 May 2011
| File:Virgin Mobile logo(original).png | |
| Company type | Private (wholly owned subsidiary of Sprint Nextel Corporation) |
|---|---|
| Industry | Wireless communications |
| Founded | October 2001 |
| Founder | Sir Richard Branson |
| Fate | Acquired November 2009 |
| Headquarters | , U.S. |
Number of locations | 40,000 (handset retail partners) 150,000 (Top-Up card retailers) |
Area served | Continental United States |
Key people | Jeff Auman — Vice President, Sales & Distribution Bob Stohrer — Vice President, Marketing David Trimble — Vice President, Virgin Mobile USA Business Line |
| Products | LG Optimus V MiFi 2200 LG Flare |
| Services | Beyond Talk Broadband2Go payLo by Virgin Mobile |
Number of employees | 420 (2008) |
| Parent | Sprint Nextel Corporation |
| Divisions | Assurance Wireless Common Cents Mobile |
| Website | virginmobileusa |
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Virgin Mobile USA, Inc. is a wireless communications services provider based in Warren, New Jersey, United States.[1] Founded in 2001 as a mobile virtual network operator, Virgin Mobile USA, Inc. commenced operations under the Virgin Mobile brand in June, 2002. Virgin Mobile USA was acquired by its network services provider, Sprint Nextel Corporation, in 2009 and is now a wholly owned subsidiary of Sprint Nextel Corporation. Virgin Mobile has about 6 million subscribers.
Under the Virgin Mobile brand, Virgin Mobile USA, Inc. provides prepaid wireless voice, messaging and broadband data services to subscribers throughout the United States via the Sprint Nextel CDMA PCS network. Virgin Mobile USA targets younger customers or those who do not want to pay inflated monthly fees, offering some of the cheapest plan rates in the industry and does not require customers to enter into a contract. Virgin Mobile handsets and broadband access devices are available on line and at more than 40,000 retail partner locations including Best Buy, RadioShack, Target and Wal-Mart stores. Virgin Mobile top-up cards are available on line and in 150,000 retail locations nationwide.
Virgin Mobile USA operates independently of other Virgin Mobile licensees in other countries.
Company history
Led by founding CEO Dan Schulman, who was appointed in September 2001, Virgin Mobile USA began operating in the summer of 2002 and was one of the first companies in the United States to offer prepaid cellular service, and was the first prepaid-only provider.[citation needed] In 2008, Virgin Mobile USA acquired Helio, a competing mobile virtual network operator (MVNO) aimed at post-paid contract users.[2] By late 2009, Virgin Mobile USA ceased selling new Helio phones or service. In May 2010, less than a year after its purchase by Sprint, the company began offering its first smartphone, the BlackBerry Curve 8530, combined with new unlimited text and data plans.[3]
Initial public offering
In May 2007, Virgin Mobile USA, then owned by Virgin Group, initiated an initial public offering filing with the United States Securities and Exchange Commission.[4] On October 10, 2007, Virgin Mobile's sold 27.5 million shares at $15 per share, lower than the original $15–$17 estimate.[5]
On November 15, 2007, approximately one month after the IPO, Virgin Mobile USA announced earnings for the three month period ended September 30, 2007. The company reported that its third-quarter loss widened to $7.3 million, compared with a loss of $5.1 million in the year-ago quarter. The company also reported a pro-forma loss of 15¢ per share, compared with a loss of 10¢ per share in the year-ago period. As of November 16, 2007, shares of the company's common stock had declined to $9.19 per share.
The company reported in 2007 that it held an exclusive license for the Virgin Mobile brand in the United States, U.S. Virgin Islands and Puerto Rico until the end of 2027. In exchanged, it had agreed to play 0.25% of gross revenues up to an annual limit of $4 million, adjusted annually for inflation.[1]
Sprint Nextel's acquisition
On July 28, 2009, Virgin Mobile USA was acquired by Sprint Nextel in return for Sprint Nextel stock valued at approximately US$5.50 per share of Virgin Mobile common stock.[6] It was purchased by Sprint, who had previously owned 13.1 percent of the company, in November 2009.[7]
Business model
Handsets and airtime are sold through the company's Web site and various retail outlets, such as Wal-Mart, Target, RadioShack and Best Buy, and major grocery and drug store chains such as Walgreens, Rite Aid, and CVS/Pharmacy.[8] Additionally, existing Virgin Mobile USA customers can purchase prepaid airtime using a credit or debit card or a PayPal account. Virgin Mobile USA does not maintain its own retail stores, but many Sprint Nextel stores also sell their phones.
Service plans
Virgin Mobile USA makes three types of service plans available to customers, none of which require a contract to be signed — pay-as-you-go "Beyond Talk" monthly plans, "payLo by Virgin Mobile" plans, and "Broadband2Go" plans.
"Beyond Talk" plans
- Monthly $25 charge (300 anytime minutes + unlimited text + unlimited data)
- Monthly $40 charge (1,200 anytime minutes + unlimited text + unlimited data)
- Monthly $60 charge (unlimited anytime minutes + unlimited text + unlimited data)
If all anytime minutes are used before the end of a month, additional overage minutes are 10¢ each deducted straight from the customer's cash balance. BlackBerry users must add another $10 per month for Web-based email (through BlackBerry Internet Service), BlackBerry Messenger and BlackBerry App World.[9]
"Broadband2Go" plans
- Monthly $50 charge (30 days, 3G speeds up to 2.5GB Broadband, Virgin Mobile reserves the right, without notice, to temporarily limit throughput speeds when monthly data usage on the $50 Broadband2Go Plan exceeds 2.5GB)
- $10 charge (10 days, 100MB bandwidth)
"payLo by Virgin Mobile" plans
Voice
- Basic rate
The default rate is 20¢/minute. This option has no monthly charge, but the customer must purchase at least $20 every 90 days[10] to keep the account active. Unused money accumulates if it is not used. For example, a never-used phone might carry $20 after three months, $40 after six months, and so on.
- 400 minute plan
The second "payLo" option requires a $20 monthly payment, which allows the customer to use 400 minutes at a rate of 5¢/minute. Any additional minutes used are charged at the basic rate of 20¢/minute.[11]
- 1500 minute plan
The third "payLo" option requires a $30 monthly payment, which allows the customer to use 1500 minutes, a 500 message pack and a 10 MB data pack for Web access. Additional minutes are charged 10¢/minute and any additional messages and megabytes are charged at the basic rate (15¢ per SMS/MMS, $1.50 per megabyte).[12]
Text and Web access
In a "payLo" Basic-Rate plan the price for messages is 15¢/text and 25¢/MMS, to send, or receive[11] In order to access the WAP, Virgin Mobile users must pay $1.50/MB of Web usage, this pack expires 24 hours after purchase[11]
Device offerings
| Phones | Mobile Broadband |
| LG Optimus V (available in black) | Novatel Ovation MC760 |
| Samsung Intercept SPH-M910 (available in black) | Novatel MiFi 2200 |
| BlackBerry Curve 8530 (available in black) | PEEL™ 3200 by ZTE |
| LG Rumor Touch (available in black) | |
| LG Rumor 2 (available in black) | |
| Kyocera Loft (available in black) | |
| Samsung M340 (available in black at Virgin Mobile Web site, RadioShack and Target. Available in purple at Wal-Mart) | |
| LG Flare (available in black at RadioShack and Virgin Mobile Web site. Available in silver at BestBuy) | |
| LG 101 (available in black) | |
| Kyocera S2100 (available in black) |
See also
References
- ^ "Jobs At Virgin Mobile". Virgin Mobile USA. Retrieved 2010-07-14.
- ^ Reardon, Marguerite (2008-06-27). "Virgin Mobile USA buys Helio for $39 million". CNET.com. Retrieved 2010-07-14.
- ^ Flatley, Joseph L. (2010-05-06). "Sprint and Virgin Mobile announces Beyond Talk $25 prepaid plan, new prepaid brand". Engadget. Retrieved 2010-07-14.
- ^ "Virgin Mobile USA Initial Public Offering". United States Securities and Exchange Commission. May 1, 2007. Retrieved 2007-07-13.
- ^ Zuill, Lilla (2007-10-10). "UPDATE 1-Virgin Mobile USA IPO raises $412.5 mln". Reuters.
- ^ http://investors.sprint.com/phoenix.zhtml?c=127149&p=irol-newsArticle_newsroom&ID=1312854&highlight=
- ^ Nickinson, Phil (2009-07-28). "Sprint purchases Virgin Mobile USA". WMExperts. Retrieved 2010-06-13.
- ^ "Find a Virgin Mobile Store — Retail Locations". Virgin Mobile USA. Retrieved 2010-07-14.
- ^ "Beyond Talk Plans". Virgin Mobile USA. Retrieved 2010-07-14.
- ^ "Virgin Mobile Help for Prepaid Cell Phone and Plans". Virgin Mobile USA. Retrieved 2010-06-13.
- ^ a b c "payLo by Virgin Mobile USA". Virgin Mobile USA. Retrieved 2010-07-14.
- ^ Virgin Mobile — payLo plans
External links
- www.virginmobileusa.com — Virgin Mobile USA