Virgin MobileYasser Albugmi

Ch. 5 Opening CaseBCIS 340 / Sec. 8

Virgin Mobile Overview• The official website is VirginMobileUSA.com

• Virgin Mobile was established in 2002 as a joint venture between Richard Branson’s Virgin Group and Sprint.

• It is the fastest growing wireless carrier in the United States.

• Virgin Mobile has attracted nearly two-million wireless users, and is the first mobile carrier to solely target the youth market.

• It is the nation’s first Mobile Virtual Network Operator.

Unique Features• Virgin Mobile originally used only a prepaid, or pay-as-you-go system, and has

redefined the prepaid market. There is now an option for a contract plan.

• Signing up for Virgin Mobile does not require a contract or any hidden fees if you choose the prepay option.

• Virgin Mobile gives its customers innovative, personalized voice and data offerings.

• The Virgin Mobile system is designed to suit the lifestyle and preferences of today’s younger crowd.

• Virgin Mobile has an unemployment protection plan which will cover three

months of payments if you lose your job.

How The System Works• As a Mobile Virtual Network Operator (MVNO),

the Virgin Mobile system requires an extensive applications system and system integration between the Information Technology architecture of Virgin Mobile and the legacy systems powering Sprint.

• Virgin Mobile relies on a group of technology partners who contribute the essential capabilities.

• Virgin Mobile deploys its own Information Technology infrastructure, which guarantees perfect operation.

• The company’s architecture is service-oriented, which allows the use of web services which are made available through multiple channels (such as handsets).

Virgin Mobile ad featuring Hillary Clinton.

Productivity• Virgin Mobile develops and produces new features very frequently in order

to keep up with competition in the wireless market.

• New functionality innovations are released every four to six weeks.

• Virgin Mobile completes over two million web service transactions per day.

An example of Virgin Mobile’s advertising.

Achievements• Virgin Mobile was successfully launched to the public only seven months after

the establishment of the company.

• Virgin Mobile has built twenty-six application interfaces for core business functions, most of which were web services; therefore it is easier for the

company to create services much faster and more efficiently than before.

• As a result, the reuse of services gets rid of wasteful development projects, which decreases integration costs and enhances project completion extensively.

An image from Virgin Mobile’s “Addict” ad campaign.

Challenges• Since Virgin Mobile is an MVNO, they do not

own the mobile network.

• Therefore, they are faced with the challenge of owning the customer relationship, which includes duties such as call management.

• Virgin Mobile has suffered intense time-to-market pressure since its establishment,

because the wireless industry becomes more and more complicated everyday.

• If a Virgin Mobile customer does not have a contract plan, they are free to drop their

service at any time.

Virgin Mobile Charity ad.

Newest Products

Contract phones and prices.

Non-contract phones and prices.

Where To Buy• Virgin Mobile products and services are available for purchase in over

12,000 retail locations in the United States (as well as internationally). These include Best Buy, CompUSA, Media Play, Rite Aid, Safeway, Sam

Goody, Sprint Stores, Target, Wal-Mart, Virgin Megastores, as well as some college bookstores.

• Virgin Mobile can also be purchased online through its official site, VirginMobileUSA.com, as well as other retail websites such as

Amazon.com.

Question #1

What is it about Virgin Mobile that appeals to the younger crowd? Discuss what features and services in a mobile carrier would be useful in

your lifestyle as a teenager or young adult.

Virgin Mobile ad featuring Barack Obama.

Question #2

How often does Virgin Mobile release new features?

A) Every 2 to 3 months. B) Every 2 to 3 weeks. C) Every 4 to 6 months. D) Every 4 to 6 weeks.

Ad for a text messaging plan.

Question #3

Virgin Mobile is a joint venture between Virgin Group and which company?

A) T-mobile B) Sprint C) Verizon D) AT&T