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Virgin Mobile USA Off to Strong Start
URL(s): Virgin Mobile
WARREN, N.J. -- Feb 5, 2003 -- Virgin Mobile USA, LLC -- a cellular service designed exclusively around the needs of the youth market -- has hit a strong stride since its national launch on July 24, 2002. The company today announced that in just six months, it has added more than 350,000 net subscribers and is currently reporting an average of more than 2,000 new customer activations each day.
A snapshot of Virgin Mobile USA's recent performance metrics demonstrates strong growth:
-- More than 350,000 net subscribers in just six months of operation
(Aug. 1, 2002 - Jan. 31, 2003)
-- An average of more than 2,000 new customer activations per day for
January 2003
-- With 245,000 new subscribers captured in the fourth quarter of
2002 alone, Virgin Mobile USA represented 6.4 percent of total net
subscriber additions for that quarter across all cellular carriers
(Based on industry total net subscriber adds of 3.8 million; Source:
JPMorgan Equity Research, Jan. 22, 2003)
"For all those who've been wondering how Virgin Mobile USA is doing, it's a pleasure to confirm that we're off to a strong start," said Dan Schulman, Virgin Mobile USA president and CEO. "The company is beginning to hit its stride, and we are meeting all internal targets. Early 2003 indicates a continued strong rate of growth."
Both the parent companies of Virgin Mobile USA - the Virgin Group and Sprint PCS
- expressed strong support for the joint venture's performance.
Sir Richard Branson, chairman of the Virgin Group, said, "We are delighted with Virgin Mobile USA's progress so far. In fact, it is growing at a faster rate than Virgin Mobile UK was six months after it launched in 1999. And today, Virgin Mobile UK has become the fastest growing cellular business in Britain with 2.4 million subscribers - and profitability a year ahead of plan."
Len Lauer, president of the PCS division of Sprint, said, "We are strong believers in the value proposition that Virgin Mobile USA is offering to the youth market. Sprint looks forward to Virgin Mobile's continued growth and success in the year ahead."
Virgin Mobile USA Customers - A "Self-Serving" Bunch:
Data collected during the company's first six months indicates that Virgin Mobile USA consumers are heavily using the self-service features built into the service.
-- 87 percent of all Top-Up's for January 2003 were done via self-service
- meaning, without a customer asking to speak to a live Central
Intelligence representative (this percentage covers all Top-Ups,
whether customers bought their Top-Up card at a retailer or added
money to their account with a credit/debit card)
-- More than 50 percent of customers have activated their phones online in
January 2003
-- 70 percent of Virgin Mobile USA customers are using the Balance Button
feature at least once a week to get instant confirmation of their
totally up-to-date account balances
"This inclination toward self-service demonstrates how easy our service is to use. Importantly, this helps us provide stellar customer service and additionally, allows us to keep a low cost structure," said Schulman.
Text and Ring Me, Baby - Customers Get Down With Content!
Early information on usage patterns also demonstrates that Virgin Mobile USA customers are active users of data and content offerings:
-- Almost 66% Virgin Mobile USA customers have downloaded more than
250,000 ringtones since the cellular service launched nationally in
July 2002
-- In December 2002, more than 53% percent of all Virgin Mobile USA
customers used text messaging (SMS)
-- On average, Virgin Mobile USA customers send or receive two text
messages every day that they use their Virgin Mobile phone
-- Over 40% of subscribers have used VirginXtras, Virgin Mobile USA's menu
of fun, non-voice services (excluding text messaging). Some of the
more popular applications include the Rescue Ring, MTV Audio Post
Cards, Music Hit Lists and SpongeBob's Deep Sea Thought of the Day.
"A late 2002 Telephia/Harris Interactive poll found that while 20% of U.S. cellular owners used text messaging in 2002, SMS use among 18 to 24 year olds was 45%," said Schulman. "The fact that the SMS usage percentage among Virgin Mobile USA subscribers is as high as 53% is an early indication that our user base is right in line with our targeted youth demographic."
About Virgin Mobile USA, LLC:
Virgin Mobile USA, LLC is a joint venture between Sir Richard Branson's Virgin Group, and Sprint, which operates the largest all-digital, all-PCS nationwide wireless network. Established in October 2001, with its national consumer launch in July 2002, Virgin Mobile is the first mobile virtual network operator (MVNO) in the United States and the first U.S. company to create a step-down price plan with no contracts to sign and no fine print. Under the arrangement with Sprint, Virgin Mobile utilizes Sprint's wireless network to deliver service to its customers, while retaining all responsibility for customer service and subscriber maintenance.
Virgin Mobile's service includes long distance, voicemail, caller ID, call waiting, text messaging and directory assistance. All customers have access to VirginXtras - a host of music, entertainment, group messaging and just plain fun features that add flair to the cellular experience. Virgin Mobile USA has a strategic relationship with MTV Networks for content from MTV, VH1, CMT and Nickelodeon. Virgin Mobile cell phones are available at Best Buy, Circuit City, Media Play, Sam Goody, Target Stores and Virgin Megastores. The company's Top-Up cards are also available at Circle K and 7-Eleven stores. For those customers who are perpetually plugged-in, Virgin Mobile's cellular products and services are available 24/7 through the Web at www.virginmobileusa.com and Virgin Mobile's Central Intelligence number at 1-888-322-1122. Virgin Mobile USA Off to Strong Start Upstart National Cellular Service Captures 350,000 Net Subscribers in First Six Months of Operation
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