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Virgin Mobile has seen a 37% increase in UK users against the same period last year. The good news stops there. Average revenue per user (ARPU) has gone down and the churn level is up.

Virgin does not have its own network. Instead it hires network capacity from T-Mobile.

Q4 was the best for new connections, with 417,000 new customers. However on 31/12/04 the "90-day activity level was 77.2 per cent". Churn increased from 13.8% at the end of December 2003 to 16.2%.

Revenue overall was up 9.4%, however ARPU continued to slide from £137 to £132. Ofcom, the UK regulator was blamed by Virgin for the fall. The regulator had reduced interconnect rates.

Tom Alexander, the virtual mobile operators CEO, commented about the perormance, "once again the strong consumer appeal of our brand as well as the robustness of our virtual business model."

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