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Virgin denies contract claims

By Bandile Sikwane, ITWeb journalist
Johannesburg, 02 Jan 2007

Mobile operator Virgin Mobile has refuted claims that it will be going back on its word by offering free handsets with its packages.

Unlike the other three local cellular companies, Virgin Mobile offers either prepaid packages or an account facility, but does not tie in its customers through contracts.

"There are currently no immediate plans to offer free phones as an ongoing part of our product offering," says Virgin spokesman Nicholas Maweni.

This comes amidst newspaper reports that "weak subscriber numbers" may have caused Virgin Mobile to "bow" to consumer demand and offer free handsets to customers, effectively tying consumers into contracts, the very concept that Virgin Mobile vowed to eradicate.

"We have not deviated from what we believe," says Maweni. "We will not offer contracts that tie people to our network, that's not what we are about.

"We ran a one-time promotion during the festive season, offering a basic Motorola free of charge provided that customers financed their Motorola V3 Gold handset purchase with us at 0% interest. The offer was not extended to other makes of handsets. It was a special promotion that we ran along with Motorola for these two types of phones," explains Maweni.

"Consumers had the choice to buy that particular handset cash or finance it with us over a period of 24 months. The handset was not offered free under contract, as eluded by recent reports," says Maweni.

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