Virgin Mobile congratulates the 'copy cats'

[rpm]

http://www.mybroadband.co.za/nephp/?m=show&id=3526

 

[Tns]

Sounds all good,but is it? Would be interesting to hear from VM subscribers

 

[damian24]

One reality of VM that I like, no ridiculous price differences when you phone cross network. MNP is going to be a killer when you start phone cross network.

D

 

[mooK]

Nice PR spin by Virgin, well done!

 

[mancombseepgood]

Virgin Mobile arrived barely a month ago and was the first to claim that so-called 'freebie' mobiles were in fact rip-offs being used to lock customers into long-term contracts.

Actually alot of us already knew that.

He says: "Because we do not hide costs and we offer 0% interest on handset instalments - our mobiles should be much cheaper than those 'freebies’."

But are they really?

LG Chocolate on Virgin Mobile V100 plan:
up front once off R99+R89 = R188
R119-58 for phone and R100 for monthly plan = R219.58 per month minimum
Call charges: R1-95 for first 5 minutes total calls for the day.
All calls thereafter R1-55 per minute
Therefore 5 minutes of calls per day = R9-75 per day = R292.50 per month + phone and package installments above of R219.58 less R100 inclusive airtime
= R412.08 total monthly installments = ***R9889.92 over 24 months***
To `opt out' just pay off the phone at R119-58 pm x 24 = R1434.96

Compare with MTNSP: LG Chocolate on Mycall100
R139 per month minimum
NO once off costs
100 inclusive minutes per month
5 minutes of calls per day = 150 minutes = 50 minutes of calls over and above inclusive minutes. Worst case scenario for cost of these minutes (mtn to other network peak time) = R2.75*50 = R137-50
Total of R276.50 per month. = ***R6636 over two years***
To `opt out' - just pay up your MTN bill and put the sim in drawer - cost = R139*24 = R3 336-00. You do, however, get 1200 minutes per annum (100 per month) talk time - you have to pay this.

http://www.virginmobile.co.za/greatDeals1.shtml
"At Virgin Mobile you can cruise if you choose. If, for some bizarre reason you feel like leaving, just settle your bill and go. No hard feelings or penalties."
Its the same with any SP in reality - you just settle your bill, cancel your contract in writing, and put your sim in the drawer until it's over. Easier if you dont opt for an `inclusive minutes' bundle.
"No peak rates" - same for any time of day.
"Vrewards" - you get airtime depending on the amount of money you spend.
R30 for R200-R350 spent, and as much as R8000+ per annum if you spend alot per month. i.e. you are passed a saving in arrears instead of paying less for the calls up front. Not such a bad idea. I can see all the corporates who have to have a company phone sending their vrewards to their own bank accounts. There are tax implications, however small though, if you benefit directly - and some companies may have ethical issues with this which can complicate things.

Prepaid get the same rates and benefits as contract customers - its about time! Now that bit is gr8.

IMO it's no great fireworks, and in the example above - 5 minutes of calls per day... well... it's easier to see which costs less over 2 years - in fact, they are HORRIBLY more expensive over two years in that example. So much for loving the consumer!

He says: "Because we do not hide costs

No - you're proud of them and brag about them... lol.

 

[Franna]

I for one welcome Virgin to South Africa. I'm currently on a mission to see how many cellphone subscribers I personaly can convert to VMobile, and how many new VMoney credit cards friends and family will convert to.

 

[mancombseepgood]

so far so bad...
http://www.mybroadband.co.za/vb/showthread.php?t=47984

 

[bwana]

LG Chocolate on Virgin Mobile V100 plan:
up front once off R99+R89 = R188
R119-58 for phone and R100 for monthly plan = R219.58 per month minimum
Call charges: R1-95 for first 5 minutes total calls for the day.
All calls thereafter R1-55 per minute
Therefore 5 minutes of calls per day = R9-75 per day = R292.50 per month + phone and package installments above of R219.58
= R512.08 total monthly installments = ***R12289.92 over 24 months***
- Of course, it is possible that there is some airtime included, but I cant see it on their site, so i am ignoring that fact -
To `opt out' just pay off the phone at R119-58 pm x 24 = R1434.96

Youre forgetting - the r100 you're paying for the monthly plan is your first r100 - ie you're committing to a minimum expenditure) in charges so in actuality the monthly breakdown with your example would be:

Plan: r100
Phone: r119-58
calls: r292.50-r100= r192.50

Monthly: r412.08

Not that its important but I looked at the MyCall 100 plan and if you're making using those 5 minutes per day in peak times its going to cost you much more as they only give you 15 minutes per month there. Then you're talking 135 minutes at between r1.80 and r2.75 (depending on who you call) average it out at r2.25 and that's r303.75. Add in your r135 per month subs and that's r438.

The only clear thing is that people need to examine their calling habits and then decide who they want to go with. The problem is if you make a mistake you might have to live with it for 24 months.

 

[Origin248]

At the end of the day, we must just remember that Virgin is not evil by trying to make money. All companies except the supposedly "Non-Profit Organisations" are trying their best to please their shareholders.
What we can be happy about is that Virgin has come in and offered something completely different from everyone else, offering us something new. This where innovation and competition starts.

 

[Abe]

Not that its important but I looked at the MyCall 100 plan and if you're making using those 5 minutes per day in peak times its going to cost you much more as they only give you 15 minutes per month there.

It's also unfair to work on exactly 5 minutes per day. Anything over that is where VM starts to shine so if one takes exactly 5 minutes, you are getting the worst deal. Normal calling habits also mean that some days people spend 10 minutes on the phone and others zip.

 

[mancombseepgood]

Youre forgetting - the r100 you're paying for the monthly plan is your first r100 - ie you're committing to a minimum expenditure) in charges so in actuality the monthly breakdown with your example would be:

Plan: r100
Phone: r119-58
calls: r292.50-r100= r192.50

Monthly: r412.08

Not that its important but I looked at the MyCall 100 plan and if you're making using those 5 minutes per day in peak times its going to cost you much more as they only give you 15 minutes per month there. Then you're talking 135 minutes at between r1.80 and r2.75 (depending on who you call) average it out at r2.25 and that's r303.75. Add in your r135 per month subs and that's r438.

The only clear thing is that people need to examine their calling habits and then decide who they want to go with. The problem is if you make a mistake you might have to live with it for 24 months.

Good point - thanks - edited

 

[bwana]

It's also unfair to work on exactly 5 minutes per day. Anything over that is where VM starts to shine so if one takes exactly 5 minutes, you are getting the worst deal. Normal calling habits also mean that some days people spend 10 minutes on the phone and others zip.

Also - I forgot the per second billing. Five, 30 second calls on most networks are charged as five minutes. A quick look at my calling habits and the majority of my calls are under a minute so thats where I'll make most of my savings.

 

[mancombseepgood]

Ok

It's also unfair to work on exactly 5 minutes per day. Anything over that is where VM starts to shine so if one takes exactly 5 minutes, you are getting the worst deal. Normal calling habits also mean that some days people spend 10 minutes on the phone and others zip.

13 minutes of calls a day = 390 minutes pm.

Virgin:
up front once off R99+R89 = R188
R119-58 for phone and R100 for monthly plan = R219.58 per month minimum
Call charges: R1-95 for first 5 minutes total calls for the day.
All calls thereafter R1-55 per minute
Therefore 13 minutes of calls per day = R9-75 + R12-40 per day = R664.50 per month + phone and package installments above of R219.58 less R100 inclusive airtime
= R784.08 total monthly installments
= ***R18817.92 over 24 months***

Compare with MTNSP:
R139 per month minimum
100 inclusive minutes per month
1. WORST CASE:
13 minutes of calls per day = 390 minutes pm = 290 minutes of calls over and above inclusive minutes. Worst case scenario for cost of these minutes (mtn to other network peak time) = R2.75*290 = R797-50
Total of R936.50 per month. = 152.42 pm MORE than Virgin
2. AVERAGE CASE (estimated - make some off-peak calls, Telkom calls, etc.)
13 minutes of calls per day = 390 minutes pm = 290 minutes of calls over and above inclusive minutes. Average case scenario for cost of these minutes (mtn to telkom) = R2.00*290 = R580-00
Total of R719.50 per month. = 65.08 pm LESS than Virgin

In this scenario (390 minutes a month), you may be considering another MTN package however - Procall 220 @ R565.00 pm
1. WORST CASE:
13 minutes of calls per day = 390 minutes pm = 90 minutes of calls over and above inclusive minutes. Worst case scenario for cost of these minutes (mtn to other network peak time) = R2.35*90 = R211-15
Total of R776.15 per month. = 7.93 pm MORE than Virgin in a WORST CASE SCENARIO
2. AVERAGE CASE (estimated - make some off-peak calls, Telkom calls, etc.)
13 minutes of calls per day = 390 minutes pm = 90 minutes of calls over and above inclusive minutes. Average case scenario for cost of these minutes (mtn to telkom) = R1.70*90 = R153-00
Total of R718.00 per month. = 66.00 pm LESS than Virgin

6 of this, half a dozen of the other...
Smoke and mirrors
Not being tied into a contract is NOT BAD though IMO.

 

[mancombseepgood]

Yep

Also - I forgot the per second billing. Five, 30 second calls on most networks are charged as five minutes. A quick look at my calling habits and the majority of my calls are under a minute so thats where I'll make most of my savings.

Also a good point.
In reality, your bill may or may not be less, but then you at least have the freedom to move... for those wanting to emigrate, you wont be tied down - lol!

 

[bwana]

Also a good point.
In reality, your bill may or may not be less, but then you at least have the freedom to move... for those wanting to emigrate, you wont be tied down - lol!

lol - they should offer free phones to ppl switching to VM-UK

 

[Abe]

In this scenario (390 minutes a month), you may be considering another MTN package however - Procall 220 @ R565.00 pm

But then you would have to look at the R500 VM deal . I am on a ProCall 300 and my average spend is R650 per month. After looking at the VM option, I have found that I would get more minutes (+- 320) per month then the 300 that I have included with the ProCall for less (R500) and that is ignoring the 30 second story.

Obviously the VM option does not include a phone but I do get R80 per month of rewards and the R150 per month savings adds up to a R230 per month phone or R5500. I can only move in a couple of months after doing the math, it is definitely a better option for me.

Cheers

Abe

 

[mancombseepgood]

Yeah

I just don't get their rates tho...
The difference between committing yourself to 0, R100 or R500 spend per month is:
V0 - R2-35 per minute for the first 5 minutes per day
V100 - R1-95 per minute for the first 5 minutes per day
V500 - R1-75 per minute for the first 5 minutes per day

Thereafter, they all drop to R1-55 per minute

so... if you make more than 5 minutes call per day on average:
v0 = 11.75 = R3 per day more than v500
v100 = 9.75 = R1 per day more than v500
v500 = 8.75

And if you use the phone for work... then roughly 21 days are working in a month...
v500 = R63 pm saved over v0, R21 pm saved over v100
v100 = R21 more than v500, R42 pm saved over v0
v0 = R42 pm more than v100, R63 pm more than v500

So... why commit to spending a minimum when you aren't in effect saving much. I travel regularly, sometimes for 3 weeks at a time. I don't always know when I will be travelling. Why should I commit to more than R100 per month on the phone? It makes no sense. Commiting to R500 per month saves you a maximum of R63 per month.