Virgin Mobile looks ready to euthanize Helio brand, Ocean 2 vanishes
[Via MobileCrunch]
virgin posts
Here we were, just minding our own business and thinking that the Samsung Link was going to be christened by Bell, then bam -- out of nowhere, Virgin goes and steals some thunder. If you're looking for EV-DO, go ahead and keep right on lookin' because you're not going to find it here -- but otherwise, the Link offers portrait QWERTY on the cheap alongside a 1.3 megapixel cam, microSD slot, and stereo Bluetooth. If you like what you see, you can go ahead and grab it now for CAD $99.99 (about $92) on prepaid or CAD $29.99 (about $28) on a three-year deal. Sorry, Bell guys -- it's coming soon. We think.

Sound familiar? Ultra-cheap unlimited plans are doing well (in some cases, too well) for everyone that's offering them these days, and it seems that Virgin is no exception to the rule. Following the April 15 launch of its $49.99 unlimited plan, the company announced during its earnings call this week that it's seen a five-times-over boost in unlimited plan adds (yeah, bargain pricing will do that), which dovetails nicely with the MVNO's claim earlier in the year that the crappy economy really set it up for big wins in '09. Notably, the quarter saw income rise 301 percent year-over-year to $19.1 million while operating revenues rose 2 percent to $337.3 million, so things are looking up for these guys just months after financials were looking weak -- so strong, in fact, that they've revised their full year cash flow and earnings upwards. Does this mean we get new Helio gear soon?
Virgin Mobile's CEO, Dan Schulman, stated while at the Dow Jones Wireless Innovations Conference last week that Virgin's planning on adding some more touchscreen to its world. What sets is, of course, your and our first question, but sadly it's one we don't have an answer for, yet. Though whatever it or they end up being, he went on to say that it is part of a move to smarter phones targeted at low to middle-income youth on prepaid. Of course, Virgin's core business is the prepaid world, though contracts are always available if you're inspired to stick about. With CTIA just around the corner, we're thinking we could hear a little more then.
Well, it looks like the budget-friendly carrier options in Canada just got a little less budget-friendly, as Virgin Mobile has hiked its monthly rates by about 17% across the board, and added a new $35 "account setup fee." That makes the new $25 "Starter" plan the least expensive option available, with it including 100 text messages, 100 minutes, and 1,000 evening and weekend minutes. Other plans will run you $30, $40, or $50 a month (each $5 more expensive than before), while the top-end $60 a month plan is the only to remain unchanged. Additional bundle packages have also received a hike, and will now run you anywhere from $11 to $22. According to MobileSyrup, there's a number of reasons for the rate increases, including the fact that the discount carrier apparently hasn't posted a profit since its launch in 2005, and that they're now looking to build some actual walk-in stores, in addition to the usual kiosks. Even more interestingly, they're also saying that the price increases could be in anticipation of some pricier handsets in the offing, perhaps even including the BlackBerry Storm by the end of the year.
Scant few companies prefer a crappy economy in which to do business, but Virgin's latest financials suggest that this kind of operating environment might just be the sweet spot. 'Course, Virgin's US offerings are all about "value" -- prepaid and all -- and it seems that the Sprint-based MVNO is getting mad play from that angle, reporting close to a quarter million net adds in the fourth quarter of '08. For the record, that compares with forecasts of 60 to 100K -- and yes, granted, they closed on the Helio deal in the quarter, but beating estimates is always awesome.








