UPDATED: Virgin Mobile USA set to increase mobile broadband pricing pressure

Sprint Nextel Corp.’s (S) Virgin Mobile USA brand affirmed plans to update its mobile broadband service that will include an unlimited, no-contract offering for $40 per month. The company originally hinted at the changes yesterday on its Facebook page.
The new plans, which are set to take effect through Virgin Mobile USA’s online channel tomorrow, also include an entry-level offering of 100 megabytes of data transmission that is good for 10 days. Virgin Mobile USA’s current mobile broadband plans include a $20 per month offering that provides for 300 MB of data transmission, a $40 plan that provides 1 gigabyte and a $60 plan that provides 5 gigabytes.
Virgin Mobile USA noted that customers on current plans will be able to use up their current allotment of data and then select from one of the two new plans for future data usage.
Devices shown with the new plans include Novatel Wireless Inc.’s (NVTL) MiFi 2200 mobile hot spot for $150 and its Ovation MC760 USB dongle for $80. The MiFi device allows up to five Wi-Fi enabled devices to connect to the Internet using the 3G network as backhaul.
The company earlier this year upped its $60 plan from 1 GB to 5 GB, matching parent company Sprint Nextel’s pricing, though as with all Virgin Mobile USA services a contract is not required nor offered. Sprint Nextel’s offering also has the advantage of accessing service while roaming, while the Virgin Mobile USA service relies on Sprint Nextel’s native network.
In May, Virgin Mobile USA completely overhauled its offering to focus on mobile data services before last month sliding in a voice component through its PayLo service.
In the no-contract mobile data space, Virgin Mobile USA’s stiffest competition is from T-Mobile USA Inc. (DTEGY) and Leap Wireless International Inc.’s (LEAP) Cricket service.
Through its Even More Plus no-contract service T-Mobile USA offers 5 GB of data for $40 per month or 200 MB for $25 per month. Both plans include unlimited access to the carrier’s T-Mobile HotSpot Wi-Fi offering. The carrier’s device line up for its mobile broadband service is currently limited to a trio of USB modems priced from $150 to $200 or a wireless modem-equipped Dell Inc. (DELL) netbook for $430.
Leap recently altered its mobile data pricing to include 2.5 GB of data for $40 per month, 5 GB for $50 and $60 for 7.5 GB. Once a customer goes over their allotted data bucket, Leap said it begins to throttle down network speeds. The carrier previously offered a $40 plan for 5 GB of data and in select retail locations a 10 GB plan for $50.
Leap did also announce that through new data roaming agreements, including one with Sprint Nextel, its data service will eventually cover more than 280 million potential customers. Leap’s offering is also currently limited to a trio of USB dongles, though the carrier has said it plans to launch a MiFi device in the near future.