Virgin Mobile USA Gets iPhone: Why it is Important

By Gary Kim June 26, 2012
Something important is shaping up in the mobile device arena, Virgin Mobile USA announced it will offer the iPhone to its prepaid customers beginning Friday, June 29, 2012, becoming the second “prepaid” mobile services provider to have that privilege, as Leap Wireless will also sell the Apple iPhone.

Virgin Mobile USA will offer the iPhone 4 and iPhone 4S with its "Beyond Talk" unlimited data and messaging plans as low as $30 per month on the Sprint Nationwide Network.

Here's why the move is important. Up to this point, the "prepaid" mobile service providers have been unable to sell the Apple iPhone, with some obvious implications for customer attraction and retention. Since Virgin and Leap Wireless now sell the iPhone, some of that disadvantage is removed. In other words, the “prepaid” carriers will now be able to better compete with the tier-one providers. 

To be sure, consumers at Virgin Mobile USA and MetroPCS will have to pay full retail for their devices, but as some will note, at $50 a month, a consumer sort of "breaks even" after six months of service, says Troy Brown, founder of one50one, a digital marketing firm. 

Virtually, all global mobile carriers would prefer to be in that situation, and we might now get a true test of consumer willingness to pay full retail for their coveted devices.The iPhone will be available without a contract and with no fees for activation or roaming. New and existing customers can purchase the iPhone at www.virginmobileusa.com, RadioShack, Best Buy and select local retailers.

As it turns out, the “prepaid” service providers might provide the best marketplace test of U.S. consumer willingness to pay full retail for their handsets, in exchange for service without a contract.


Edited by Brooke Neuman

Contributing Editor

SHARE THIS ARTICLE
Related Articles

Verizon Needs Tough Love on Copper Policies

By: Doug Mohney    1/29/2015

New regulation on broadband and telecommunications providers is at top of mind here at ITEXPO. Jeff Pulver, founder and chief executive of pulver.com …

Read More

OTT Video Set to Top $6 Billion in 2019

By: Tara Seals    1/29/2015

When it comes to over-the-top (OTT) video, it has grown not only in developed regions but also in emerging markets, both as an alternative and complem…

Read More

Digium CEO: Businesses at Every Level Can Get Started with UCaaS

By: Allison Boccamazzo    1/29/2015

Digium CEO Danny Windham made one thing clear during his keynote presentation at ITEXPO 2015: Businesses of all kinds, at every developmental level, c…

Read More

When Gaming Isn't a Game: 3 Best Practices to Protect Your Hosting Service Against DDoS Attacks

By: Joe Eskew    1/28/2015

The unprecedented number of security breaches, hacks and DDoS attacks on gaming communities, software manufacturers and even Hollywood studios grew to…

Read More

No Hackers Took Down Facebook; Hour's Outage Mostly Internal

By: Steve Anderson    1/28/2015

Facebook released a statement not long after the outage had hit, revealing that the cause of the shutdown was not "...the result of a third-party atta…

Read More