The handset subsidy endith

August 29, 2007 | Comments Off | Joshua Gans

The mobile phone handset subsidy that has been the rationale behind locked phones (thankfully, not in Australia) and long-term contracts looks to end soon with the iPhone deals in Europe involving carriers giving 10 percent of their revenues to Apple. Sure, there is an implicit subsidy here in that Apple can then set their handset prices lower but the need to tie the phone and a particular contract seems no longer important. Of course, there could be hidden details so time will tell.


Comments

Comments are closed.