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News 2001

Virgin Mobile moves into Phone People

11/10/2001

Phone People becomes first specialist dealer for Virgin Mobile

Virgin Mobile, the UK's fifth network, today announced that it is to sell its products and services in Phone People, the UK's second largest independent specialist mobile retailer. This is the first time Virgin Mobile will be available in an independent specialist dealer chain, taking the total number of outlets stocking Virgin Mobile to 4,600.

Launching into 70 branches of Phone People from 22nd October 2001, and a further 22 stores by the end of the year, this deal marks the next phase of Virgin Mobile's rapid growth. The company also aims to expand into other High Street and selected specialist phone stores before Christmas.

Said Graeme Hutchinson, sales director at Virgin Mobile: "With an ongoing retail development programme in place, signing a deal with a specialist mobile phone dealer was the next logical step. As we expand, we won't be selling our phones everywhere, but in carefully selected outlets. Phone People, will not only help build on the Virgin Mobile brand but will also offer a strong and established route to market, based on their high subscription sales.

"Our unique proposition also allows us to compete head-on with the old-fashioned contract proposition of rivals - but with none of the catches, such as monthly fees or contracts to sign. Our customers can pay monthly, without being charged for line-rental - and there's no 12 month tie-in."

Dr Simon Berrisford, non-executive director for Phone People, commented: "The benefits of this deal for us are great. We are able to widen our appeal by offering Virgin Mobile's exciting service; a proposition which we know many of our customers will like. We're delighted to be the first specialist phone store to stock Virgin Mobile phones."

Virgin Mobile is working with Phone People's training department to deliver an intense programme of staff induction and training in the countdown to all stores taking delivery of their new stock and promotional material.

Virgin Mobile makes owning a mobile phone simple and affordable. There are no hidden costs - you only pay for the calls you make, and you own your handset straight off. There's no contract to sign or monthly line rental to pay and one simple tariff means calls are about the cheapest around: 15p a minute for the first 5 minutes of use each day, then only 5p a minute after that. Virgin Mobile's tariff also comes with a Big Bonus which rewards big talkers- anyone registered for the Big Bonus who spends £30 or more on calls in a month gets 10% worth of that total credited back in free airtime the next month.

-ends-

For further information please contact:

Virgin Mobile
Steven Day/Joanne Baker, Virgin Mobile (07931) 777777/(07941) 233300
Debra Burtt/Julia Clark, Consolidated Communications (020) 7287 2087

Phone People
Rebecca Cardwell/ Julie Hayes, Weber Shandwick Worldwide Tel: 0161 238 9416/ 0161 238 9417

Notes to Editors

About Virgin Mobile:
Virgin Mobile is now established as the most successful virtual network operator in the world, and is the UK's fifth network. Since its launch in November 1999 it has attracted well over one million customers, making it one of the fastest growing mobile phone companies in history.

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.

It has scored a number of firsts, including being the first operator to scrap peak rate calls, introduce a daily discounting tariff and was the first company in the world to introduce an integrated MP3 mobile phone.

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 4,500 outlets including Virgin Megastore, Our Price, V.SHOP, Sainsbury, Tesco, WH Smith, Iceland, Co-op, Asda, Somerfield, John Lewis, Littlewoods and Morrisons.

Phone People

Phone People is based in Southport and was first established in 1989. The company has 92 stores, employs 250 people, and is the second largest independent mobile phone retailer in the UK.

Phone People has a reputation for being a friendly, accessible independent high street retailer, that now offers all five networks. The company has an intense training programme designed to ensure a high quality customer experience, which is the cornerstone to Phone People's strong subscription sales and loyal customer base.

The service ethos is to put customers first, by being truly responsive and flexible to their needs and by shopping around for the best deals.


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