Virgin Mobile USA’s PayLo expands entry-level options

Virgin Mobile USA’s PayLo offering is set to expand its entry-level rate plans in connection with distribution partner Wal-Mart.
The service, which runs across Sprint’s network, will offer customers a choice between unlimited domestic voice calling and 50 text messages or unlimited messaging and 50 voice calling minutes at $20 per month. The plans are only available through select Wal-Mart retail locations and via its website, and are tied to either the Kyocera Kona or Samsung Montage feature phones.
PayLo’s current $20 plan includes 400 calling minutes and charges 15 cents per text message and $1.50 per megabyte for data access. That plan is available through PayLo’s other distribution channels and can be connected with a broader range of feature phones.
PayLo noted that the Wal-Mart-specific offering is targeting consumers that do not want a smartphone. Sprint does have a history offering exclusive services through Wal-Mart locations, having previously launched certain Virgin Mobile USA rate plans through the big-box retailer. Wal-Mart has also had success in garnering exclusive offerings through other wireless carriers, including T-Mobile US and MetroPCS, as well as its Straight Talk and Family Mobile offerings.
Sprint launched the PayLo service in mid-2010, adding a voice-centric component to the Virgin Mobile USA platform. Virgin Mobile USA earlier this week unveiled a new entry-level, voice/messaging-only rate plan that broke from the brand’s traditional focus on cellular data access. The plan runs $25 per month and includes unlimited domestic voice calling and messaging, with no stipulation for cellular data services. Instead, the offering pushes consumers to access data using Wi-Fi connectivity.
Sprint recently reported that it lost 363,000 direct prepaid customers during the first quarter, impacting what has traditionally been a growth outlet for the beleaguered operator. In addition to the Virgin Mobile USA and its PayLo sub-brand, Sprint also offers no-contract services through its Boost Mobile, Sprint Prepaid and government-subsidized Assurance brands.
Sprint earlier this year altered pricing for both its Prepaid and Boost Mobile services. Those moves came just ahead of AT&T closing on its acquisition of Leap Wireless and subsequent re-launch of the no-contract Cricket brand.
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