Virgin Mobile iPhone

Virgin Mobile USA owned by Sprint Nextel Corp, will start selling the iPhone 4 and iPhone 4S on its pre-paid network starting from today. Announced earlier this month, Virgin Mobile will become the second pre-paid network to offer the iPhone on its network after Cricket also announced that it would carry the iPhone starting on June 22nd.

Virgin Mobile will carry the iPhone 4 8GB version for an upfront cost of $549. The iPhone 4S is the entry level 16GB version with a price point of $649. You then have a choice of three plans with varying talk minutes from $30 - $50. All plans include unlimited SMS messaging and unlimited data with a fair usage allowance set at 2.5 GB.

"We think there's good demand for high-end devices like the iPhone in the prepaid market," Sprint Chief Executive Officer Dan Hesse said in an interview. "There's a misperception that the prepaid market is only for people that are economically challenged. That's not the case. Our expectation, based on preorders, is that the iPhone will do very well on Virgin."

Virgin Mobile will use the interest generated by the iPhone to promote the opening of ten retail stores, starting in Chicago tomorrow. The stores signify a change in direction for Virgin Mobile who previously relied upon other stores like RadioShack and Best Buy to promote its offerings.

Source: Bloomberg, Virgin Mobile

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