Virgin Mobile provides a value alternative

The launch event took place on Saturday, June 24, 2006 at Rand Airport, Germiston, Gauteng.

"A lot of things that are presently going on in this cellphone market should not be happening in the first place," Branson told reporters shortly after jetting off in the chartered helicopter that had ferried him in from Johannesburg International Airport.

He was welcomed on the ground by Ekurhuleni Metro police chief Robert McBride and dozens of enthusiastic traffic officers.

"Millions of South Africans are duped into thinking they are getting a 'free' phone and then are locked into long-term contracts that are riddled with hidden fees and extra-charges," Branson said.

"We want lovers, not prisoners. Customers are losing out and paying more than they need to for their mobile phone services. Can you imagine paying R10 for a bag of rice at your local grocer which actually costs R7 just because the merchant prefers to deal in even numbers?"

Branson emphasised that Virgin Mobile (SA) is being established to end all this confusion and right the wrongs of the industry by offering a better, simpler mobile service that works well for the customer.

The project, which cost over R700 million, is a 50/50 venture with Cell C, South Africa's third cellular operator, which will carry Virgin Mobile's data and services. The investment will create close to 500 new jobs and 200 indirect jobs, of which 70% will be given to people from previously-disadvantaged communities.

The company's strategies are based on great tariffs, no lock-in, no rip offs, simplicity, unique drop-down rates and pay for what you use, according to the info pack.

No rip offs...

Everyone gets a fair deal. Both prepaid and credit customers will be offered the same tariffs. The company claims it has reinvented the Prepay Account by giving Prepay customers access to a convenient debit order and exactly the same rates and benefits as credit holders. And there will be no mandatory charges.

Simplicity...

Virgin Mobile's charges are simple. There is no such thing as off-peak, on-peak or cross-network rates. So, Virgin's customers won't have to watch the clock all day to make cheaper calls or worry about what network they are calling. The company said these timeslots are irrelevant to its customers' communication needs.

Great tariffs...

Virgin's Prepay customers start at R2.35 for the first five minutes per day, then 'drop-down' to R1.55 for the remainder of the day. SMS rates apply the same unique 'drop-down' feature in that the first five messages sent per day are charged at 60 cents per message. And thereafter, SMS will be charged at 35 cents for the remainder of the day.

No lock-in: lovers not prisoners...

No 'free phone' catch that results in being locked-in to punitive rates for 24 months. Virgin will offer a great cash price and allow its account holders to pay off their mobile over six, 12, 18 or 24 months at 0% interest.

Mobiles and unique Access Packs will be available in more than 350 outlets in major metropolitan areas nationwide, including Virgin Mobile flagship stores Musica, Woolworths, Virgin Active and Clicks. The number of these paypoints will double by year-end. Customers can get activated by the Sign Me Up centre on 0860 SIGN Me. Airtime top-up are available on the Net as well as at more than 10 000 outlets countrywide. Customers can also recharge at any Absa or Nedbank ATM nationwide.

Asked by Bizcommunity.com if Virgin Mobile has the guts to compete against the 'big guns', CEO Sajeed Sacranie replied: "Yes, we are ready to compete against anyone. We are the challengers and we have come to challenge the unfair norms and give society a better deal."

Virgin Mobile was first launched in the United Kingdom in November 1999, in Australia in 2000 and subsequently expanded in the United States in July 2002. To date, the company claims to have attracted more than 8.5 million subscribers worldwide.
For information, visit www.virginmobile.co.za.