- On Thursday, Sprint announced that the iPhone would soon be made available on Virgin Mobile USA, its prepaid plan service.
- “The cost will be considerably less than the fees contract customers pay monthly to use an iPhone — once you get past the upfront price of the phone itself,” details The New York Times.
- Customers who opt for the prepaid plan will buy the phones for $650 (4S) or $550 (4 or older), “but the baseline $30 monthly fee includes 300 minutes, unlimited data and unlimited text messages. By contrast, AT&T and Verizon no longer offer unlimited data plans, and their contract customers pay upward of $90 a month to use an iPhone,” according to NYT.
- Virgin Mobile is not the first prepaid service to announce it will offer the iPhone. It follows Leap Wireless’s prepaid service, Cricket.
- Why the sudden offerings on prepaid services? “Tero Kuittinen, a mobile analyst and vice president of Alekstra, a company that offers services to help phone customers lower their monthly bills, has a theory,” notes the article. “He said he had heard from smaller carriers that Apple was upset with the expensive plans offered by Verizon and AT&T. By making the iPhone available with cheaper plans, it hopes to put pressure on the big carriers to cut their prices, he said.”
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