Virgin Mobile’s Inner Circle unlimited offering.
For those still not familiar with Inner Circle, it is a plan that promises a whole year of unlimited data for just one dollar. By any measure, the Inner Circle plan is a very generous and attractive special offer, and it came about as part of Sprint’s relaunching of its Virgin Mobile brand, which has now been transformed into a mobile operator that sells only iPhone devices. The $1 for one year unlimited data deal was made available to any new customer who purchases an iPhone from Virgin, as well as to those existing customers who decide to upgrade to an iPhone. After the first year of service is finished, the unlimited data plan’s pricing reverts to the usual $50 a month.
It is a good bet that the Inner Circle deal so far has already gotten a lot of takers. The fact that Sprint has recently chosen to extend the promo period until the end of this month may be a sign that there is indeed some significant demand. And Wall Street is noticing -- in a research note, Jefferies is projecting that the Inner Circle offering will result to impressive new prepaid customer addition numbers for Sprint by the end of the third quarter of this year.
Jefferies further pointed out that the prepaid market’s role in the United States’ wireless industry will become bigger in the months to come, especially as the level of competition continues to ramp up. Interestingly, the analyst firm also noted that recently, prepaid gross additions seemed to have decreased more compared to that of previous years. That is offset, however, by ever declining customer turnover rates, which resulted to 415,000 prepaid net additions during Q2 2017, marking the sixth straight quarter in which there were at least 400,000 additions in the prepaid market.