View Single Post
Old Today, 19:59   #8
gunner45
Roger_Gooner
 
Join Date: Nov 2008
Location: London
Services: Virgin Media M350, Hub 5, Mega TV with TNT Sports and Sky Sports & Cinema HD, TV 360 box + landline
Posts: 220
gunner45 is a jewel in the roughgunner45 is a jewel in the roughgunner45 is a jewel in the roughgunner45 is a jewel in the roughgunner45 is a jewel in the rough
Re: Virgin mobile returning? Also possible O2 broadband

At first glance, reports that VMO2 is considering resurrecting Virgin Mobile look odd. VMO2's existing budget brand is giffgaff (owned by O2), which costs little to run - being no-frills, community-moderated, and built around a SIM-only identity where plans are rolling and contract-free (and any phone financing is handled separately via Klarna rather than traditional bundled handset contracts). I'm very familiar with giffgaff, having been a customer for several years, and it works well.

However, what works far less well is when Virgin Media and O2 - operating as a 50:50 joint venture - try to market their services together. Volt is awkward: take Virgin Media broadband, TV, and landline, and they add O2 mobile benefits on top. There is no getting around the fact that Volt is essentially a marketing wrapper stitched over two entirely separate corporate billing systems and customer databases. Relaunching Virgin Mobile as a sub-brand would actually be quite cheap. O2 already handles SIM distribution, Virgin Media's billing system, which I believe to have been recently rewritten, should be able to accommodate a mobile tier, and VMO2's call centres are already set up for it, having simplified team structures and cross-trained roughly 5,000 existing staff to handle broadband, TV, landline, and mobile enquiries in a single call in 2025.

That points to the real rationale for resurrecting Virgin Mobile as a sub-brand: bundling it directly with Virgin Media's broadband, Pay TV, and VoIP on 24-month contracts with none of the awkwardness of Volt, giving customers a single bill for the lot. Positioned as a retention tool to keep valuable broadband and Pay TV households, it wouldn't need O2 Priority perks, uncapped 5G speeds, or flagship handset subsidies. And fenced off as a broadband bundle add-on, it shouldn't cannibalise either premium O2 or standalone giffgaff (which serves an entirely different, unbundled market).

On reflection, there's a lot to like about the proposal.
__________________
I'm always right... except when I'm wrong
gunner45 is offline   Reply With Quote