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Virgin 'Bails Out' Hardup Customers Facing Layoffs


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Hoping to stimulate consumer spend and spark some brand loyalty on the side, prepaid wireless firm Virgin Mobile USA is offering its laid-off customers calling plans for three months, fully-paid, including taxes and surcharges.

The so-called Pink Slip Protection Plan launches April 15, AdAge reports. Customers that select plans that cost $29.99 or more will be automatically enrolled, but must be clients for at least two months before eligibility kicks in. Existing customers may sign on through June 30th.

Customers that wish to take advantage of the Pink Slip Protection Plan must furnish Virgin with proof of state unemployment benefits eligibility.

For Virgin's part, CMO Bob Stohrer called the plan "quite a differentiator […] relevant to our core customer who typically spends less [on wireless] on a monthly basis than a contract customer."

The Pink Slip Protection Plan follows similar protection plans from Ford Motor Co., General Motors Corp. and Hyundai Motor Co., the LA Times observes.

According to Stohrer, promotions for the Plan will include digital media, including on social networks and sites like Yahoo. Virgin will also promote the program on its website and take advantage of customized point-of-sale promotions at places like Walmart and Target.

The US prepay base totals about 10% to 20% of wireless users. (The system is big in Europe and Asia; most Americans continue to commit to multiyear contracts with wireless carriers.) But a recent Boost Mobile study found prepay is expected to grow 14% in he States next year, compared with 4% growth for "postpay" contract customers.

In other recent news, Virgin launched a $50 unlimited plan — following fast on the heels of Boost (owned by Sprint Nextel).

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