Replies to post #24 on VIRGIN MOBILE USA, Inc. (VM)

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$49.99 all-you-can eat

April 9, 2009, 12:59 pm

Virgin Mobile Sets $49.99 Voice Plan; Sprint Deal Revised

Virgin Movile (VM) disclosed in an SEC filing that it signed a revised agreement with Sprint Nextel (S) that reduces the rate Virgin pays Sprint for domestic network usage above a specified base amount. The new deal went into effect April 1. Virgin also said that starting January 1, it will pay a fixed rate to Sprint for text messages, regardless of volume, but will no loner get a discount based on aggregate usage. Figuring the financial imapct of the revised deal is pretty much impossible; the actual rates have been redacted from the copy of the agreement that was attached to the filing. But certainly, lower rates would seem like good thing.

Meanwhile, Virgin announced a new $49.99 all-you-can eat voice plan that includes a “pink slip protection” proivision which waives up to three months of service fees in the event a subscriber becomes unemployed. The $49.99 plan does not include any data services, unlike, say, the similarly priced plan from Sprint’s own Boost Mobile unit.

Virgin today is up 15 cents, or 9.8%, to $1.68.