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December 2007 - Strategy Magazine
Upfront

Virgin Mobile incents Canada to wait for no-con contracts

by Carey Toane
page 12

Virgin Mobile Canada is ready to make a long-term commitment - almost. The operator plans to expand its current base of 500,000 pre-paid customers by getting into the post-paid business in early 2008, and will double the number of ministores in malls across the country to 150 next year.

"There has been a high level of consumer demand," says CMO Nathan Rosenberg, adding that similar transitions have gone smoothly in predominantly pre-paid markets in Europe and Asia. In Canada, where over 70% of mobile users are on post-paid contracts, the potential is even greater. Virgin brand founder Richard Branson said, "We hope to take the 'con' out of contract and bring in a

post-paid proposition that really shakes up Canada."

Eager consumers can pre-register at Virginmobile.ca to be contacted when the new service launches, and to get a chance at one of 500 prizes of free texts for a year or the grand prize of free service for life.

The campaign, created by Toronto-based Zig, is designed to compel holiday shoppers to wait for Virgin, with pre-launch online and viral activities advising people to "be careful what you sign up for this Christmas." A separate above-the-line holiday campaign pushes new pre-paid products such as the Motorola CRAZR.

Branson announced the new foray when he was in Toronto last month for a Virgin Unite fundraising event, where 850 people raised over $2 million to fight global warming and AIDS in a silent auction held by the employee charity. Acts included Mindfreak magician Criss Angel, who is considering his own longer-term partnership with Virgin. "Given our focus on the 18- to 30-year-old audience and his status as a person of great interest to that target audience, it makes good sense," says Rosenberg.

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