The range will be rolled out to most leading mobile-phone retailers except Carphone Warehouse within weeks. It marks the first time a virtual mobile operator has sold its own branded handsets. The first model will be the Lobster 485, a clamshell handset with a camera, which will be priced £89.99.
Each Lobster phone will feature a Virgin-branded red shortcut key, which will give customers access to Bites - the operator's entertainment portal - and service updates.
Jim Powell, head of product marketing for Virgin Mobile, said it has deals in place with 30 manufacturers to produce the handsets. He added that Virgin will source most of the range from Asian companies, with plans to launch between two and three handsets this year. The Lobster 485 has been built by South Korean firm Bellwave.
Powell said the range was vital to enable Virgin Mobile 'to stand out from the competition' in an increasingly competitive market.
Initially, marketing will be limited to in-store and promotional activity to existing customers. However, Virgin Mobile is working on a campaign that is expected to break in time for the peak Christmas sales period.
The launch of Lobster follows similar moves by Orange, O2 and Vodafone. According to industry analysts, mobile operators believe own-brand handsets are vital to attaining an advantage over rivals, as handset manufacturers' brands become as strong as those of the operators.
Sector insight, page 36.