Add to del.icio.us     Digg this

July 16, 2010

Sprint Nextel has launched its new PayLo service through its Virgin Mobile subsidiary. The new offering brings a voice-focused component to what has been in the past mostly a data-centric service from Virgin Mobile. Sprint's new wireless service includes a 400-minute voice plan for $20 a month, or a per-minute rate of 5 cents per minute, depending on the plan selected.

For mobile users that talk less, the plan also allows subscribers to pay $20 to maintain an active account for up to ninety days with voice calls during that time charged at 20 cents per minute.

Virgin Mobile said the new service would roll out in U.S. retail locations in 10 days, including RadioShack and Best Buy locations as well as at other drug and convenience stores in more than 20 states.

MIDs (mobile Internet devices) for the service will initially be limited to the LG Electronics LG-101 at $20 and the Samsung M-340 at $40, both of which are available at the same price for Sprint Nextel's recently launched Common Cents offering.

This represents a new niche market for Sprint, one that wasn't covered until today.

In addition to the voice plans, customers can also send or receive text messages for 15 cents each, photos for 25 cents or access data services for $1.50 per megabyte.

So for wireless users that need to use text messaging more or increased data services, it looks like Sprint Nextel has better offerings for them, and at a somewhat lower cost.

Virgin Mobile's Chief Marketing Officer Neil Lindsay said the new service is targeted at customers looking to keep their wireless expenditures at $20 or less a month.

In addition to improving its prepaid line up, Sprint Nextel also reported that its Assurance offering has expanded to Florida and Louisiana joining its continued availability in Maryland, Michigan, New York, North Carolina, Tennessee, Texas, Oklahoma and Virginia.

“It's the perfect complement to our multibrand strategy,” Lindsay said in a statement.

Sprint's new PayLo service joins the company's multitude of prepaid options that include the data-centric services from Virgin Mobile, unlimited voice and data offering from Boost Mobile, the Common Cents pay-as-you-go service and its federally subsidized Assurance Wireless plans.

The new wireless service provides a free phone and 200 free minutes of voice service each month to its customers.

Mobile subscribers can then pay an additional ten cents a minute for voice calls over their allotted plan and 10 cents for text messaging, e-mail or IMs.

Subsidies for the service are supported by the Lifeline Assistance program, which is part of the Low Income Program of the Universal Service Fund.

Add to del.icio.us     Digg this

Source: Sprint Nextel.