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Sprint's Virgin Mobile to Start Selling iPhone

Sprint Nextel Corp.'s (S) prepaid-service provider Virgin Mobile USA will begin offering Apple Inc.'s (AAPL) iPhone on June 29 with unlimited data and messaging plans starting at $30 a month after a discount. Virgin Mobile said its Beyond Talk unlimited data and messaging plans start at $35 per month for access to Sprint's Nationwide Network, and customers can receive a monthly discount of $5 if they register for automatic monthly payments with a credit card, debit card or PayPal account. Customers can also pay an additional $15 a month to use their iPhone as a mobile hotspot. Virgin Mobile is selling the 16-gigabyte iPhone 4S for $649 and the 8-gigabyte iPhone 4 for $549, far above the national carriers that subsidize the cost of the phone for customers signing a two-year contract. Last month, Leap Wireless International Inc.'s (LEAP) Cricket was the first pre-paid carrier to offer the iPhone in the U.S. It planned to sell same iPhone 4S model for $499.99 and the iPhone 4 at $399.99 with its $55 per month wireless plan. Virgin Mobile and Cricket's iPhone prices are markedly higher than those offered by other larger carriers that require customers to sign monthly contracts. AT&T Inc. (T), by comparison, is selling the iPhone 4 for $99.99, according to information provided on its website. Write to Melodie Warner at [email protected]

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