Virgin Mobile

The BlackBerry Curve will be coming to Virgin Mobile subscribers in Canada this November.  With a successful launch of the BlackBerry Pearl 8130, the Curve will join the carrier’s lineup and hopefully lead to additional smartphones for Virgin Mobile.  While Virgin Mobile USA is not quite as fortunate, the release gives some hope to subscribers here in the states.   The current rumor is that the Curve will be available for $99 on a 3 year contract and the release date will be ’sometime’ in November.

Via IntoMobile

The Pantech OZII, formally known as the Helio Ocean 2 by most, but with the Virgin Mobile buyout it could become the Virgin Mobile Ocean 2.  Not much has changed in the Helio Ocean 2 versus it predecessor since it still features the same dual sliding mechanism, QVGA display, dual keyboards, EVDO 3G, 2.0 megapixel camera, stereo Bluetooth and microSD slot.  Despite the lack of upgrades, the slight change in styling and the die-hard fan base for the original Helio Ocean should deliver solid sales when Virgin Mobile unveils the Ocean 2 early in 2009.  At this point no release date has been announced, but Virgin Mobile has confirmed the device will launch in 2009 and that they are committed to the Ocean lineup.

Source: PhoneScoop

Virgin Mobile USA has just announced its first 3G phone, the Shuttle.  The device is made by Personal Communication Devices, formerly UTStarcom, and behind the simplistic slider is an EVDO radio, 2.0 inch screen, 1.3 megapixel camera and some location-based capabilities.  Thanks to the recent acquisition of Helio, the Shuttle will be the first device from Virgin Mobile to make use of the Buddy Beacon service, which maps your friends locations, delivers points of interest, tracks gas prices and announces local events.

With recent partnerships with Web 2.0 companies such as Facebook, MySpace, YouTube, Acccuweather, ESPN and Yahoo, the Shuttle comes prepare to take on a wide variety of mobile tasks and thanks to the 3G connectivity, communications should be a breeze.  To handle the Internet, Virgin Mobile has 20MB of data for $5/month and 50MB for $10 (on contract).  Customers on PAYG have the option of 5MB for $5 and 20MB for $10.

The release date for the Virgin Mobile Shuttle is September 28th so let the countdown to take off begin.  Best Buy will be the retailer of choice and the estimated retail price is going to be “under $100″.

Source: Virgin Mobile Press Release

Sorry Helio Ocean fans, this year will not bring you the highly anticipated update to the ever-popular Helio Ocean.  With Virgin Mobile taking the reigns of Helio earlier this year and the recent transition of services and subscribers, Virgin Mobile made several big announcements at CTIA today.  Despite the Ocean being the best selling device for Helio, Virgin Mobile spokeswoman Jayne Wallace had very unfortunate news.

The Ocean 2 is not going to be 2008,” Wallace said. “It has been manufactured, and there is a commitment to putting it on the market, but it’s going to be in early 09 … just because the shell has been manufactured doesn’t mean it should be released right now. We want to put it out when it’s the best it can be.”

The other big announcement disclosed a hint at the future of Virgin Mobile for next generation data networks.  With Virgin Mobile being hosted by Sprint and the Sprint WiMax service ready to go live next month, Virgin Mobile WiMax devices might soon be in pipeline

As Sprint adds things to their network - as they add WiMax, for instance - we’ll have access to these things. WiMax isn’t on the drawing board for any time soon, but when we have the handsets that can fulfill that [system], it’s an opportunity.

Source: GearLog

With the acquisition of Helio by Virgin Mobile USA on August 22nd, Virgin Mobile has finally announced the new branding, “Helio By Virgin Mobile: Plan To Have It All”.  Effective immediately are new plans and the launch of the Shuttle, Virgin Mobile’s first handset enabled to integrate such Helio services as Buddy Beacon.  An enhancement to Helio’s $80 A La Carte plan has now been added to include Unlimited Minutes rather than the current 1500 minutes as well.

The new terms of the Helio A La Carte plan mirror Virgin Mobile’s Totally Unlimited prepaid voice plan at $79.99 and will be available to current and future Helio members.  The transition of Helio’s 170k postpaid subscribers and Virgin Mobile’s 5 million prepaid customers is now complete, but the customer care services and sales operations continue to remain separate.  Additional integration is planned over the next several months and as usual we will keep you filled on the details.

Source: EngadgetMobile

With the recent acquisition of Helio from SK Telecom and Earthlink, the strength of Virgin Mobile USA continues to move forward in the world of all things MVNO (Mobile Virtual Network Operator).  As a leader in national wireless services sans contract, Q2 2008 proved to be a centered around the success of their ‘Totally Unlimited’ calling plan and new data offerings.

The success of our newly introduced voice and data plans has driven substantial increases in higher ARPU gross customer additions in the second quarter. The recent launch of our ‘Totally Unlimited’ calling plan for $79.99 provides our customers with one of the most compelling offers on the market and is quickly becoming a clear differentiator for Virgin Mobile USA. Sales of the new unlimited plan are exceeding our expectations, and at current usage levels, they are among our most profitable. We believe these factors will result in an improvement to ARPU trends going forward and reinforce our confidence in our 2008 estimates.”

The big numbers worth noting in their press release are that they currently operate with $29.2 million of free cash flow (the most ever) and they had a Net Income (NI) of $8.3 million dollars.  At this point the low fixed-cost model seems to be working well for the last in a dying breed of MVNO networks here in the US, but that is all about to change now that they have added the post-paid subscribers from Helio.

The acquisition of Helio offers an excellent opportunity to expand our addressable market into postpaid and significantly increase the value we can provide our customers through new data services and feature-rich handsets. The additional liquidity and improved capital structure anticipated from the deal will benefit our business financially and strategically, and we are looking forward to the closing of the transaction in the third quarter.”

Read the full press release

The latest handset to join the Wild Card, Slash and Flare has been released today, the Virgin Mobile UTStarcom Arc flip phone.  What that ‘Arc’ lacks in features, it more than makes up for in a stylish design and cost-effective price point of $49.99 all without the contract.  With a VGA camera, mobile web browsing, IM and email, the ‘Arc’ is not going to have anyone jumping out of their seats, but at the least the flip phone will fit nicely in your pocket.  At only 0.8 inches thick and weighing 3.0 ounces, the ‘Arc’ brings back memories of days past when sporting a belt clip was not a requirement to carry a phone.  To complete the package the ‘Arc’ comes with a slightly tweaked Virgin Mobile UI, 200 minutes of talk time, 14.5 days of standby and room for up to 500 contacts.  Although you probably won’t find any of the Cellfanatic crew sporting the Virgin Mobile Arc, those of you looking for a phone that gets the job done without the annual contract for $50 bucks have a winner.

Full Press Release:

(Warren, NJ) – July 08, 2008 – Virgin Mobile USA announced its newest handset for 2008, the UTStarcom Arc. A flip phone outlined with stylish curves, the Arc is finished in a trendsetting red soft-feel touch. This affordable mobile phone, which includes Bluetooth® wireless technology and a camera, brings another cost-effective and attractive product to Virgin Mobile USA’s lineup, offering its millions of customers yet another desirable handset available without an annual contract.

A recent survey of Virgin Mobile USA customers finds that two-thirds prefer simple phones that support basic needs, including calling, Bluetooth® wireless technology, e-mail and messaging capabilities.* The Arc was designed for consumers who want a phone for what it does best—making and receiving calls and instant messages.
According to Matias Monges, Virgin Mobile USA’s Director of Mobile Devices, “The Arc offers a very reasonably priced camera phone with a fashion-conscious finish for consumers who want to capture spontaneous moments with a little style. And with Bluetooth® wireless technology, we’re sweetening the deal with additional value.”

The ARC gives Virgin Mobile USA customers access to a variety of calling and messaging plans without annual contracts, including the recently introduced Totally Unlimited voice plan that provides unlimited calling for $79.99 without roaming charges, activation fees or a two-year commitment.

Here are a few more things ARC can brag about:
• Small and compact, this clamshell phone is 3.6” x 1.9” x 0.8”—the perfect size to slip into a bag or pocket, weighing in at only 3.0 oz. without causing any unsightly bulges!
• ARC is designed by UTStarcom, and priced at a reasonable $49.99, with a VGA camera, mobile web browsing, IM and e-mail.
• Preloaded games provide entertainment, while a range of animated and Real Music ringtones are there to amuse…or annoy.
• ARC also comes with the enhanced Virgin Mobile USA user interface for a slightly cooler look and feel than the average “lump of phone.”
• 210 minutes of talk time, 14.5 days of standby time, and room for 500 contacts make this the perfect phone for the socially connected.

About UTSTARCOM
UTStarcom is a global leader in IP-based, end-to-end networking solutions and international service and support. The company sells its broadband, wireless, and handset solutions to operators in both emerging and established telecommunications markets around the world. UTStarcom enables its customers to rapidly deploy revenue-generating access services using their existing infrastructure, while providing a migration path to cost-efficient, end-to-end IP networks. Founded in 1991 and headquartered in Alameda, California, the company has research and development operations in the United States, Canada, China, Korea and India. For more information about UTStarcom, visit the company’s Web site at http://www.utstar.com.

About Virgin Mobile USA, Inc.
Virgin Mobile USA [NYSE: VM], through its operating company Virgin Mobile USA, L.P., offers millions of customers control, flexibility and choice through monthly Plans Without Annual Contracts, with national coverage powered by the Sprint PCS Network. Virgin Mobile USA’s full slate of smart, stylish and affordable handsets, including the Wild Card, Slash and Flare, are available at approximately 40,000 top retailers nationwide and online at http://www.virginmobileusa.com/, with Top-Up cards available at more than 140,000 locations. J.D. Power and Associates ranked Virgin Mobile USA highest in customer satisfaction among wireless prepaid services in both 2006 and 2007, and its customers report a 90% satisfaction rate.

Virgin Mobile USA allows customers to earn free minutes in exchange for viewing advertising content online through the innovative Sugar Mama program; and contributes a portion of profits from downloadable content to The RE*Generation, its pro-social initiative to help homeless youth.

Bluetooth is a trademark of Bluetooth SIG, Inc. Bluetooth trademarks are owned by Bluetooth SIG, Inc.

With a 10% leap in market share between the end of April and the end of May to coincide with the launch of Liberty SIM, Virgin Mobile has just claimed 29.5% of the UK SIM Only contracts.  The launch of Liberty SIM combined with Virgin Mobile’s direct marketing of its SIM Only contracts has pushed the company into the number one position.  The move was also supported by an above the line press, outdoor campaign, PR, cover mounts and recent TV idents for the Big Brother 9 sponsorship. Graeme Oxby, Managing Director of Virgin Mobile commented: 

We’re absolutely thrilled with the success of our SIM-only offering, particularly the Liberty SIM. It’s symptomatic of the world we live in, especially in the current economic climate that SIM-only deals have become in no time, the fastest growing part of the mobile contract market alongside mobile broadband.” 

With the acquisition of Helio from SK Telecom, Virgin Mobile should be sitting nice and pretty for the next year with the recent success and additional customer base.  Now if they would only deliver a smartphone we could actually relate to then we’d be in business.

[Via: Cellular News]

The SK Telecom venture formerly known as Helio is preparing for a closure in the third quarter of this year.  After a run from 2006 to 2008, the MVNO network finally realized that 2 year contracts at $100 per month for unlimited service is not in the budget of the youth market.  While the Buddy Beacon and YouTube support were nice novelties, monthly fees and carrier contracts have proven ineffective in the youth segment as was the fate for Amp Mobile before it.  While the fate of Helio has been decided and the only topic of interest for us is the future of the Ocean 2, Virgin Mobile has come out of the deal with a steal.  Here is what Virgin’s CEO Dan Schulman had to say about the acquisition of Helio,

This accelerates our ability to offer a full suite of products to our existing base of 5 million customers…We worked hard to put together a transaction that benefits all those involved, and we are delighted to gain an important strategic partner in SK Telecom, one of the premier telecom companies in the world. The acquisition of Helio rapidly advances the products we can offer and adds a migration path to our most valuable customers, and let’s us enter the post-paid business…This is a natural evolution of our product strategy and builds upon our expansion of hybrid and prepaid services. We intend to integrate Helio’s functionality into our new handsets, support prepaid, postpaid and hybrid services, and we’ll have a greatly improved capital structure and substantially more liquidity. 

The deal between Virgin Mobile and Helio adds 170,000 customers to Virgin Mobile with an inventory of 80,000 handsets and generating $80 of ARPU.  The big bonus is that they also pick up Helio’s technology which would have cost Virgin over $25 million and 12 months to build on their own.  Saving a year in the technology game is priceless even at the expense of Virgin Mobile increasing their revolving debt from $75 million to $135 to make the deal.  

The last order of business in the Virgin Mobile takeover are the Helio Employees which currently tally in at 570, but are expected to decrease to just under 370 employees by the end of the third quarter 2008.  While we will miss our favorite MVNO network, we hope that other companies looking to join the game decide to take notes from the recent downfalls of Amp Mobile and Helio.