News 2001
Virgin Mobile bucks market trend by doubling growth rate in Quarter 2
13/07/2001
- Rate of growth increases by 103% (Q2 2001 compared to Q2 2000)
- 143, 738 net connections in Q2 2001 (compared to 70,794 net connections in Q2 2000)
- Virgin Mobile passes first million in record time with 1,009,044 customers at 30 June 2001
- Virgin Mobile accounts for 32% of additions to One 2 One network (29% in Q1)
This achievement contrasts sharply with the growth rates of other UK operators. Their rates of growth have declined steeply since last year (See table).
| OPERATORS | Q2 2000 NET CONNECTIONS | Q2 2001 NET CONNECTIONS |
| Virgin Mobile | 70,974 | 143,738 |
| One 2 One | 931,000 | 303,000 |
| Vodafone | 572,000 | 269,000 |
| BT Cellnet | 670,000 | 301,000 |
| Orange | 1,200,000 | 830,000 |
| OPERATORS | INCREASE IN NET CONNECTIONS Q2 2000/Q2 2001 |
| Virgin Mobile | +103% |
| One 2 One | -67% |
| Vodafone | -53% |
| BT Cellnet | -55% |
| Orange | -31% |
The growth in April to June adds to the 190,363 customers Virgin Mobile secured in the first three months of this year, bringing the total number of new customers acquired in 2001 up to 334,101, and the total number of customers since launch in November 1999 to 1,009,044.
The gains Virgin Mobile made in Q2 2001 represent 32% of the overall growth to the One 2 One network, up on the 29% Virgin Mobile added to One 2 One's figures in Q1 of this year.
Attracting in excess of one million customers was an incredible coup for Virgin Mobile, making the company the fastest-growing mobile start-up ever seen in the UK, and among the top performers in the world. In comparison, it took more than three years for Orange to hit a million customers, One 2 One in excess of four years, Vodafone more than eight years and BT Cellnet almost a decade.
Sir Richard Branson, chairman of Virgin Mobile, said: "We are delighted that Virgin Mobile is continuing to grow at this rapid rate, despite the general slowdown elsewhere in the mobile phone market. As our competitors retrench by focusing on selling consumers restrictive contract packages, we will continue to concentrate on offering great value and allow our customers to pay any way they like for their calls and mobile services. We expect to see further growth in the second half of the year at Virgin Mobile as we aim to widen our distribution still further. Virgin Mobile, now with more than a million customers, has proved itself a worthy challenger to the other four operators in the UK and we plan to expand our virtual network model further around the world in the coming months."
Chris Godsmark, telecoms analyst at Investec Henderson Crosthwaite Securities, said: "By any measure Virgin Mobile is by far the world's most successful virtual network operator. More importantly, in terms of scale, brand and customer awareness Virgin Mobile has established itself as a serious challenger to the traditional four UK networks. Given the success of the Virgin Mobile business model in Britain, we expect to see Virgin Mobile continuing to replicate this around the world, using its formula of close equity relationships with network partners."
For further information, please call:
Steven Day, Virgin Mobile: 07931 777 777
Debra Burtt or Georgina Annett, Consolidated Communications: 07941 200300 or 07941 251100 or email press.office@virginmobile.com
Notes to Editors:
About Virgin Mobile
Virgin Mobile is a 50:50 joint venture company between Sir Richard Branson's Virgin Group and Deutsche Telekom's One 2 One, and is the UK's first mobile virtual operator (MVNO). Since its launch in November 1999 it has attracted over one million customers, making it one of the fastest growing mobile phone companies ever.
It has scored a number of firsts, including being the first operator to scrap peak rate calls, introduce a daily discounting tariff, introduce an integrated MP3 mobile phone and is the first operator to introduce a cash back tariff, The Big Bonus.
Virgin Mobile is the only network to offer cheap calls and no line rental with no hidden catches and no contracts to sign. Standard calls cost 15p per minute for the first 5 minutes of use each day, and 5p per minute after that, for up to 23 hours 55 minutes each day. There is no line rental fee and no catches, however you choose to pay - you only pay for the calls you make. Voicemail retrieval is free and SMS messages cost 10p per message in the UK.
You can also Pay As You Want - by topping up with a voucher or a debit or credit card, or you can pay monthly by direct debit. Either way, you still receive the same great value tariff and no monthly fee.
The Big Bonus scheme entitles customers using £30-worth of calls or more each month to 10% of whatever they spend as an airtime credit the following month (includes calls made within and from the UK). The Big Bonus is available to everyone paying by direct debit, or to pre-pay customers topping up with either a credit or debit card.
VirginXtras is Virgin Mobile's groundbreaking range of value-added and money-saving services. The VirginXtras service helps customers get the information they want, in the most accessible and easy-to-understand way, whether it be via IVR, SMS, voice or WAP, and can be tailor-made to suit each individual. VirginXtras is available to every Virgin Mobile customer and puts service over technology.
Customers logging on to www.virgin.com/mobile simply pre-select areas of interest from seven core categories, including: sport, music, going out, staying in, travel, shopping and fun. So, whether people are after the most recent film releases at their local cinema, discounts on a whole range of items from CDs to holidays, football scores for their favourite team or a recommendation for a night out, VirginXtras offers the easiest way to get the best and latest personalised information sent right to your phone.
Virgin has already taken the brand overseas with Virgin Mobile (Australia), a partnership with Optus, which opened for business at the end of October 2000. A similar joint-venture between Virgin and Singapore Telecom will see the launch of Virgin Mobile (Asia) later in 2001. The global Virgin Mobile brand is also expected to launch in the USA and Europe within two years. Virgin Mobile has also recently launched in Northern Ireland.
In the UK, Virgin Mobile phones are available direct on 0845 6000 600; on the web at www.virgin.com/mobile; or on the High Street at over 3,500 outlets including Virgin Megastores, Our Price, V Shops and in supermarkets such as Asda, Kwik Save and Sainsbury.
