Mobile Handset Subsidies

In: Business and Management

Submitted By utsav3188
Words 6531
Pages 27
Mobile Handset Subsidies
Strategy Implementation
Team 6
Bibin Bopan E011
Shirshendu Dutta E015
Suman Ghosh E019
Srihari Rao Kasaraneni E028
Satchit Sawant E045
Utsav Shah E045
Shubham Shukla E049

Contents Mobile Handset Subsidies 1 Part1 2 Introduction on handset subsidies and their purposes 2 Part 2 4 Different subsidy models used across different economies and firms 4 (Except India/Indian) 4 Part 3 6 Subsidies and Implementable Models for India 6 Part 5 9 Government Regulations on Mobile Handsets 9

Introduction on handset subsidies and their purposes

Handset Subsidy as defined by Technology Glossary is:
Handset Subsidy: Frequently, a wireless company will sell a phone (handset) below cost, with the hope of making up the loss later on customer usage fees. The amount of loss per handset is called the handset subsidy.
Purpose behind lowering upfront payment for mobile handset devices:
A lot of purposes could be attributed to models that lower upfront payments for handsets in return for longer term service contracts designed to recover fees in One to Three years. a. Upfront costs for new mobile handsets or tablets could be a barrier for people who are otherwise willing to pay in instalments. b. Ability to lock in customers or retain old ones or to attract them from other operators by giving them better handsets by more valuable contracts. c. Leveraging the capabilities offered by manufacturers on smartphones and the share of people using these features.
Technically this concept is not akin to the actual definition of subsidy in the proper sense. Subsidy means the transfer of value by cost with the loss to the transferor and gain to the transferee.
However, in the mobile handset-carrier business the subsidy is more of a bundled sale where the carrier…...

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