Virgin Mobile USA launches $79.99 unlimited plan

NEW YORK, June 24 (Reuters) - Virgin Mobile USA Inc (VM.N) said on Tuesday it will offer unlimited calling for $79.99 a month starting July 1, undercutting similar call plans from larger rivals like AT&T Inc (T.N) by $20.

Virgin Mobile, which focuses on selling prepaid phone cards rather than post-paid subscription services, said the "Totally Unlimited" plan can be purchased by cash or credit card.

For another $10.00 per month, customers can also get unlimited texting and messaging service, said the company, which is partly owned by Richard Branson's Virgin Group [VA.UL] and Sprint Nextel Corp (S.N).

The move was the latest in a string of similar deals U.S. phone companies have launched to woo consumers in a weak economy.

Verizon Wireless, a unit of Verizon Communications Inc (VZ.N) and Vodafone Group Plc (VOD.L), and AT&T unveiled $99.99-a-month unlimited calling plans in February, triggering concerns of a price war. Deutsche Telekom AG's (DTEGn.DE) T-Mobile USA went a step further by including text messaging for that same price.

Virgin's prepaid phone plans don't usually require rigorous credit checks or long-term commitments like postpaid services. Prepaid services tend to be cheaper, but their customers are generally less loyal.

"It is simply not necessary to sign a two-year contract to get real worth with your wireless plan," Bob Stohrer, chief marketing officer of Virgin Mobile USA, said in a statement.

Shares of Virgin Mobile fell 2.32 percent to $3.37, while AT&T shares were down 0.96 percent at $34.05 and Verizon shares were down 2.09 percent at $35.16. (Reporting by Ritsuko Ando; Editing by Steve Orlofsky)