Virgin Mobile USA

Virgin Mobile USA, Inc.
Type Private (wholly owned subsidiary of Sprint Nextel Corporation)
Industry Wireless communications services
Fate Acquired November 2009 (2009-11)
Founded October 2001 (2001-10)
Founder(s) Sir Richard Branson
Headquarters Warren, New Jersey, 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
Employees 420 (2008)
Parent Sprint Nextel Corporation
Divisions Assurance Wireless
Common Cents Mobile
Website virginmobileusa.com

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 online and in 150,000 retail locations nationwide.

Virgin Mobile USA operates independently of other Virgin Mobile licensees in other countries.

Contents

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. 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 exchange, it agreed to pay 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 PayPal.[9]

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

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.

"Broadband2Go" plans

• $20 charge (30 days, 500MB bandwidth)

"payLo by Virgin Mobile" plans

Voice

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.

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]

The third "payLo" option requires a $30 monthly payment, which allows the customer to use 1500 minutes, a 1500 message pack and a 20 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, 25¢ per Picture Message).[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]

Data privacy

Virgin Mobile keeps text messages for three months and keeps a list of who called who and at what time for two to three months.[13]

Device offerings

Phones Mobile Broadband
HTC Wildfire S, Android OS (Beyond Talk) Novatel Wireless Ovation MC760
Kyocera S2100 (payLo) ZTE PEEL 3200
Kyocera S2300 Loft (payLo) Novatel Wireless MiFi 2200
LG LG200 (payLo)
LG Optimus Slider, Android OS (Beyond Talk[14])
LG Optimus V, Android OS (Beyond Talk)
LG Rumor 2, (Beyond Talk)
LG Rumor Touch, (Beyond Talk)
LG VM101 (payLo)
Motorola Triumph, Android OS (Beyond Talk)
Samsung Intercept, Android OS (Beyond Talk)
ZTE Venture, Android OS (Beyond Talk) UPCOMING
ZTE Chaser, Android OS (Beyond Talk) UPCOMING
Samsung Restore (Beyond Talk)

Advertising

In 2011, Virgin Mobile aired ads that parodied T-Mobile USA's "Carly" ads.[15] They also had launched an entire campaign revolved around a "Hollywood celebrity couple" Sparah because "With totally unlimited the world needs another celebrity couple to follow"[16]

See also

References

  1. ^ "Jobs At Virgin Mobile". Virgin Mobile USA. http://www.virginmobileusa.com/about-virgin-mobile/virgin-mobile-careers-jobs. Retrieved 2010-07-14. 
  2. ^ Reardon, Marguerite (2008-06-27). "Virgin Mobile USA buys Helio for $39 million". CNET.com. http://news.cnet.com/8301-10784_3-9978991-7.html. Retrieved 2010-07-14. 
  3. ^ Flatley, Joseph L. (2010-05-06). "Sprint and Virgin Mobile announces Beyond Talk $25 prepaid plan, new prepaid brand". Engadget. http://www.engadget.com/2010/05/06/sprint-virgin-mobile-announces-beyond-talk-25-pre-paid-plan/. Retrieved 2010-07-14. 
  4. ^ "Virgin Mobile USA Initial Public Offering". United States Securities and Exchange Commission. May 1, 2007. http://www.sec.gov/Archives/edgar/data/1396546/000119312507097779/ds1.htm. Retrieved 2007-07-13. 
  5. ^ Zuill, Lilla (2007-10-10). "UPDATE 1-Virgin Mobile USA IPO raises $412.5 mln". Reuters. http://www.reuters.com/article/newIssuesNews/idUSN1030381320071010. 
  6. ^ http://investors.sprint.com/phoenix.zhtml?c=127149&p=irol-newsArticle_newsroom&ID=1312854&highlight=
  7. ^ Nickinson, Phil (2009-07-28). "Sprint purchases Virgin Mobile USA". WMExperts. http://www.wmexperts.com/sprint-purchases-virgin-mobile-usa. Retrieved 2010-06-13. 
  8. ^ "Find a Virgin Mobile Store — Retail Locations". Virgin Mobile USA. http://www1.virginmobileusa.com/utility/prepareFindStores.do. Retrieved 2010-07-14. 
  9. ^ "Virgin Mobile USA - FAQ". Virgin Mobile USA website. http://virginmobileusa.custhelp.com/app/answers/detail/a_id/922/kw/paypal/session/L3RpbWUvMTMxNDczNzM5My9zaWQvZjVpWmRTQ2s%3D. 
  10. ^ "Virgin Mobile Help for Prepaid Cell Phone and Plans". Virgin Mobile USA. http://web.virginmobileusa.com/help/plans/18talk/payment-top-up. Retrieved 2010-06-13. 
  11. ^ a b c "payLo by Virgin Mobile USA". Virgin Mobile USA. http://www.virginmobileusa.com/paylo/paylo-plans.html. Retrieved 2010-07-14. 
  12. ^ "payLo by Virgin Mobile USA". Virgin Mobile USA. http://www.virginmobileusa.com/cell-phone-plans/paylo-plans.jsp. Retrieved 2011-10-12. 
  13. ^ "Document Shows How Phone Cos. Treat Private Data". Associated Press. September 29, 2011. http://www.npr.org/templates/story/story.php?storyId=140931876. Retrieved 2011-09-29. "T-Mobile USA doesn't keep any information on Web browsing activity. Verizon, on the other hand, keeps some information for up to a year that can be used to ascertain if a particular phone visited a particular Web site. According to the sheet, Sprint Nextel Corp.'s Virgin Mobile brand keeps the text content of text messages for three months. Verizon keeps it for three to five days. None of the other carriers keep texts at all, but they keep records of who texted who for more than a year. The document says AT&T keeps for five to seven years a record of who text messages who —and when, but not the content of the messages. Virgin Mobile only keeps that data for two to three months." 
  14. ^ http://virginmobileusa.marketwire.com/easyir/customrel.do?easyirid=F4ABAEBA3A27ECD9&version=live&prid=804273&releasejsp=custom_124
  15. ^ Yin, Sara (2011-08-08). "Virgin Mobile Mocks T-Mobile's 'Carly' Spokeswoman". PC Magazine (Yahoo News). http://news.yahoo.com/virgin-mobile-mocks-t-mobiles-carly-spokeswoman-161155591.html. Retrieved 2011-08-26. 
  16. ^ http://sparah.com/

External links