Virgin Mobile USA to Offer iPhone on June 29, 2012

Virgin Mobile USA announced today it will offer iPhone to its prepaid customers beginning Friday, June 29. Virgin Mobile USA will offer iPhone 4 and iPhone 4S with its "Beyond Talk" unlimited data and messaging plans as low as $30 per month on the Sprint Nationwide Network.

Here's why the move is important. Up to this point, the "prepaid" mobile service providers have been unable to sell the Apple iPhone, with some obvious implications for customer attraction and retention. Since Virgin and MetroPCS now sell the iPhone, some of that disadvantage is removed.

To be sure, consumers at Virgin Mobile USA and MetroPCS will have to pay full retail for their devices, but as some will note, at $50 a month, a consumer sort of "breaks even" after six months of service.

The more-important implication, though, will be seen in consumer willingness and ability to pay full retail for devices, getting service providers out of the device subsidy game. Virtually all global mobile carriers would prefer to be in that situation, and we might now get a true test of consumer willingness to pay full retail for their coveted devices.

The iPhone will be available without a contract and with no fees for activation or roaming. New and existing customers can purchase iPhone atwww.virginmobileusa.com, RadioShack, Best Buy and select local retailers.