Virgin UK Extends to Prepaid Only

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U.K. mobile virtual network operator Virgin Mobile launched a contract plan, extending its service from prepaid only to contract customers. Only 12- and 18-month contracts are available.

Virgin Mobile Pay Monthly offers customer two options at the end of their yearly contracts. If customers are happy with their existing phone they receive reduced monthly charges on their renewed contracts, or they can renew their contracts at the same rates and get new phones.

Virgin Mobile charged that a standard monthly contract is designed to recover a carrier's costs of subsidizing a phone. Customers actually pay back the subsidies on their phones during their 12-month contracts and then continue to pay the same rates when they renew their contracts, the MVNO said.

Virgin Mobile's new contract is available exclusively through The Carphone Warehouse's 600 U.K. stores, direct sales phone lines and on the Carphone Warehouse Web site.