With both Verizon and AT&T doing away with their unlimited wireless data plans in favour of pricey tiered data options, both companies may be surprised by just how popular Virgin Mobile’s latest strategy turns out to be, as the latter is set to unleash its own version of the unlimited data plan upon the world, with the added bonus of no contracts to sign.
Although Virgin is still a relatively minor player in the world of wireless broadband, having to use Sprint’s network to carry its mobile data traffic, this move is both aggressive and well-timed, as it’s sure to challenge the big mobile players who have all but scrapped their own unlimited data plans.
But aggressive wireless promotions aside, does Virgin Mobile—and Sprint’s wireless network—offer enough to draw consumers away from the incumbent market leaders for good, or will this deal only be a abnormal blip on Virgin’s quarterly report?
There’s little doubt that many will initially be attracted to Virgin for the simple fact that it’s cheap, as comparable unlimited plans from other wireless carriers have, at the best of times, cost around $60 per month, and that included getting chained to a two year minimum contract.
But with a stingy $40 price for unlimited data traffic, two glaring issues about this Virgin deal remain unanswered: First, while this deal seems great, at these prices how long will Virgin be able to maintain this promotion? The answer, not long at all, so expect your fees to increase once Virgin has attracted its quota of new customers.
Second, can Sprint’s wireless network be trusted to not only provide users with the same service they get with Verizon, or will Sprint’s network—which experiences relatively light mobile traffic—crumble under the pressure? Should either of these options occur, look for a mass exodus of disgruntled Virgin customers.
Beyond the network issues, however, is the fact that Virgin Mobile has offered such a great deal with relatively few attractive phones available on their network. With only a relatively small selection of smartphones available, what would users actually want to use on the Virgin network? It is because Virgin has little to offer beyond this amazing data plan that I have to think that any business it brings in will only be a flash in the pan; here today, gone tomorrow.
That being said, if you’re tired of having your pocket picked multiple times for the access to the same data network by the likes of Verizon and AT&T, then perhaps Virgin Mobile’s new affordable unlimited contract-free data plan is for you….at least for now.
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Written by: Matt Klassen. www.digitcom.ca >. Follow TheTelecomBlog.com > by: RSS >, Twitter >, Identi.ca >, or Friendfeed >
