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"[It's] due to the popularity of the unlimited plan," Virgin Mobile spokeswoman Corinne Nosal said.Virgin, which is Sprint's prepaid subsidiary, rocked the nation last year by offering truly unlimited 3G Internet access for $40/month. The company choked that back to 5GB in February, citing overloaded Internet. 

Older customers who subscribed before today will be able to stay with 5GB. But anyone signing up for a new Virgin Mobile broadband plan starting today will get their speeds reduced once they use 2.5GB/month. Virgin's moves highlight one of the lesser-known practices in wireless Internet: companies massively oversell their available capacity. 

Here Virgin Mobile is referring to its roaming partner Cell C’s HSPA+ network rollout which started last year. “Customers should be advised that reduced data speeds may be experienced occasionally while the network rollout is in progress,” said Virgin Mobile.

Virgin Mobile added that they are not changing their “very competitive data pricing” of 60c per MB. “At 60c per MB, Virgin Mobile always had the lowest out-of-bundle data price in SA for GPRS/EDGE data. We look forward to being a significant player in the South African mobile broadband market“, said Steve Bailey, CEO, Virgin Mobile.

Mobile virtual network operator Virgin Mobile SA has switched on its first third-generation (3G) mobile services, piggybacking off Cell C’s new network, and offering out-of-bundle broadband at 60c/MB. “Customers with 3G-capable cellphones and modems will find that they can now benefit from higher data speeds following the upgrade of Virgin Mobile’s underlying cellular network,” Virgin Mobile says in a statement.

By. Android Phone Tips