Virgin Mobile launches contract without month-13 catch

Virgin Mobile Pay Monthly comes with a pioneering feature that guarantees consumers a reduced monthly charge or the chance to opt for a brand new phone at the end of their term. Virgin Mobile customers will never get caught out by the `month-13 catch’ – a catch that unwittingly costs consumers hundreds of millions of pounds in wasted bills each year,as they pay more than necessary for their mobile service.

As well as offering contract customers a choice of the latest phones and great-value airtime, Virgin Mobile offers unique benefits by giving customers two clear options at the end of their contract. If they are happy to keep their existing phone they can choose to enjoy a reduced monthly charge, or they can renew their contract and get a new phone – no other network offers this fair choice.

The industry’s month-13 catch
A standard monthly contract charge is designed to recover a network’s costs of subsidising a phone as part of the deal. The `line-rental’ also buys a monthly airtime allowance. Usually, a customer will have paid back the subsidy on their phone over the life of a 12-month contract.

Yet other providers continue to charge customers exactly the same amount in month 13 and beyond - nor are customers told they are ‘out of contract’ and that they could cut their monthly fee by switching to another tariff. Exactly the same applies to customers in month 19 if they have chosen an 18-month contract.

Virgin Mobile: the only operator without the month-13 catch
Virgin Mobile guarantees to automatically cut a customer’s regular monthly charge at the end of their contract term – saving them as much as 50%. Virgin Mobile does not continue to charge for a paid-off phone at the end of a contract term - instead customers pay only for their airtime.

Alternatively, at the end of their initial term, Virgin Mobile Pay Monthly customers can renew their contract and, for the same ongoing monthly fee, receive a new phone.

Virgin Mobile’s new contract is available exclusively through The Carphone Warehouse’s 600 UK stores, direct sales phone lines and www.carphonewarehouse.com for three months from 1st May.

Virgin Mobile Pay Monthly offers both new and existing customers three great value tariffs - with calls to any network at any time from 7.5p per minute*. All tariffs, available with the latest phones, come with free itemised monthly bills, free voicemail, plus £5 of bonus airtime on signing up. Out of bundled costs are at Virgin Mobile’s standard rates, which include texts from 3p.

Customers can choose between a 12 or 18-month contract, and during the term any unused inclusive airtime will be rolled over to the next month. Customers opting for the 18-month contract benefit from even greater savings.

Also, some tariff combinations are being promoted with half price monthly charges for up to 15 months.

Line Rental Rescue Kit
Virgin Mobile is also introducing an alternative `airtime only’ deal designed for people whose contract on another network has just expired and who want to avoid the month-13 catch. By keeping their phone and switching with Virgin Mobile’s `Line Rental Rescue Kit’ they can slash their monthly charge and continue to enjoy a similar inclusive airtime allowance to their old contract. See www.linerentalrescue.com.

Ending the catch
Tom Alexander, CEO of Virgin Mobile, said: “Virgin Mobile’s Pay Monthly contract is unique: we are the only network to be upfront about monthly costs and, by having challenged convention, we guarantee our customers won’t be unlucky at month 13. We’ll tell them when their contract’s up and cut their costs – we won’t make them pay for their phone twice.

“This move is the latest Virgin Mobile example of putting the consumer first. We have continually developed new and innovative products that challenge the market, and this is one of our best yet. The three-month launch partnership with The Carphone Warehouse demonstrates the strong relationship we have with them, and their enthusiasm in our brand. This is only the start of much more to come."

Charles Dunstone, CEO of The Carphone Warehouse, said: “ We are delighted that The Carphone Warehouse is the first and only retailer to offer Virgin Mobile’s contract. This reiterates our position as the UK’s leading independent mobile communications retailer offering customers the widest possible choice. Like Virgin Mobile, we always strive to innovate and their contract with a difference is a new and exciting proposition for our customers."