Virgin Mobile VIP tariff offers "unlimited everything" from £26 a month

Virgin Mobile has thrown down the gauntlet to other mobile providers with the launch of an “unlimited” tariff for as little as £26 a month. But is it really as good as it sounds?

In a bid to take on the big players in the mobile market, Virgin has unveiled a VIP tariff which offers “unlimited everything” from £26 a month.

Crucially the deal includes unlimited calls to 0870, 0800, 0845 and 0808 numbers which are normally excluded from call packages.

But is the deal really as good as it sounds?

The top tariff

Virgin’s new VIP tariff costs £31 a month for unlimited calls to UK mobiles and landlines, unlimited texts, unlimited data in the UK, unlimited calls to 0870, 0800, 0845 and 0808 numbers, free mobile phone insurance and a “top selling” handset.

Existing Virgin Media customers with TV or broadband get a £5 a month discount meaning they get the VIP treatment for £26 a month.

Virgin is selling the deal as “the ultimate worry-free monthly tariff” and, to me, it looks pretty good: It’s the only tariff to include unlimited calls to 080 numbers which can be expensive from mobiles.

For example, calling 0800 numbers from an O2 contract mobile phone costs 20.4p a minute. So a 10-minute call to your bank will set you back £2.04.

The small print

Although on the face of it, Virgin VIP looks like a great deal, there are a few clauses in the contract customers should watch out for.

Firstly, the deal offers a “top-selling handset such as the Samsung Fame or Nokia Lumia 620”.

While these might be good phones, gadget addicts might be disappointed that they can’t get a Samsung Galaxy S4, iPhone or HTC One included in the package for free. A Samsung Galaxy S4, for example, will cost you £99 up front on the VIP tariff.

Secondly, “unlimited” data doesn’t quite mean unlimited. Virgin’s acceptable usage policy applies for customers who joined Virgin Media after 25 June 2012 and states that 'excessive' use of over 3.5GB of data per calendar month will result in their maximum bandwidth being restricted to 3G speeds (384kbit/s downstream, 200kbit/s upstream).

It also says that Virgin Media’s mobile services are for “private individual use only (i.e. not for business or commercial use)” – which could, potentially, mean you’re not allowed to check your work emails on your phone. However, how Virgin would monitor this, I have no idea.

“Tethering” is banned too. Tethering involves using your handset as a modem to connect other devices such as laptops and tablets. So you can’t use your “unlimited” data allowance on your other gadgets.

Also the unlimited calls to 0800, 0845, 0870 and 0808 numbers have a 60 minute limit, after which you’ll be charged standard call rates. So if you’re in customer service hell and waiting in a call queue you’ll either have to pay call charges after 60 minutes or hang up and start again.

Finally, the cheapest deals are for 24 months although 12 month contracts are available for a higher price.

SIM-only deals

Virgin Mobile has also launched some tempting SIM-only tariffs for mobile users happy with their current handset.

Its £15 a month deal includes unlimited texts, data and minutes on a 30-day rolling contract. However, unlike the pay monthly contracts, calls to 08 numbers are chargeable.

Other networks offering cheap SIM-only deals typically cap the data usage at 1GB a month at most.

Is VIP a good deal?

Virgin VIP offers a decent deal for existing Virgin Media customers already signed up to its TV and broadband service. £26 a month for unlimited everything (albeit with a few small print clauses about fair usage) is a bargain.

The real clincher is the inclusive calls to 08 numbers, something no other network offers at the moment. Handset insurance is a bonus too although you might not need it; mobile insurance is offered as a perk on many packaged bank accounts and might be included on your home insurance too.

But for everyone else, a starting cost of £31 isn't quite so market-leading, especially if you want the very latest handset which will cost you extra.

Compare mobile phone deals with Recombu.

More on mobile phones:

Say no to 0800, 0808, 0870: how to call them free from your mobile

The cheapest deals on the Samsung Galaxy S4

Mobile phone companies ordered to stop charging for 0800 numbers

The UK's worst mobile phone provider

How to make cheap mobile phone calls home from abroad