2021 Tariff Trend Report: Innovation in selling smartphones via financing schemes - A survey of 47 Operators' Device Financing Schemes
Telecomspricing with this 48-page report considers the innovative financing plans that are being adopted by MNOs worldwide. The most common type of financing is an instalment plan for the device cost usually on a 24-month term - but MNOs are becoming increasingly innovative in selling handsets by offering more options to encourage users to upgrade or trade-in their smartphones.
Telecomspricing has surveyed the device pricing for 47 MNOs from 28 countries worldwide.
The survey found that the different types of smartphone financing used by MNOs worldwide include:
In nearly all cases the MNO is separating out the device cost from the airtime cost which is shown separately. MNOs are devising lower cost ways for the user to pay for the smartphone device, typically by extending the device repayment period – up to a 36-month (3-year) term.
In some cases, the MNO is developing extra features with the device plan, including the ability to trade-in a device or change a device after a set period. It allows the MNO to continue to sell services to the user ahead of the customer contract term coming to an end - and also encourage new smartphone upgrades.
The migration from 4G to 5G networks which is now taking place means that MNOs are encouraging users to upgrade to 5G handsets with promotions – with discounts for selected 5G smartphones being offered by Verizon (USA) and other MNOs.
Some MNOs have “productised” the instalment plan as a sub-brand, as a means of further promoting the instalment plan.
However, as yet only a few MNOs have used the instalment plan to offer additional services, including Digi (handset protection), Telenor (screen protection), SFR (handset replacement) & Proximus with an extra mobile data allowance included.
Telecomspricing has surveyed the device pricing for 47 MNOs from 28 countries worldwide.
The survey found that the different types of smartphone financing used by MNOs worldwide include:
In nearly all cases the MNO is separating out the device cost from the airtime cost which is shown separately. MNOs are devising lower cost ways for the user to pay for the smartphone device, typically by extending the device repayment period – up to a 36-month (3-year) term.
In some cases, the MNO is developing extra features with the device plan, including the ability to trade-in a device or change a device after a set period. It allows the MNO to continue to sell services to the user ahead of the customer contract term coming to an end - and also encourage new smartphone upgrades.
The migration from 4G to 5G networks which is now taking place means that MNOs are encouraging users to upgrade to 5G handsets with promotions – with discounts for selected 5G smartphones being offered by Verizon (USA) and other MNOs.
Some MNOs have “productised” the instalment plan as a sub-brand, as a means of further promoting the instalment plan.
However, as yet only a few MNOs have used the instalment plan to offer additional services, including Digi (handset protection), Telenor (screen protection), SFR (handset replacement) & Proximus with an extra mobile data allowance included.
Methodology
Introduction – The types of smartphone financing used by MNOs worldwide
Examples of the smartphone financing plans introduced by MNOs worldwide
Innovation for the traditional smartphone finance plans & possible limitations
Conclusions – The future of the smartphone finance plan
Introduction – The types of smartphone financing used by MNOs worldwide
Examples of the smartphone financing plans introduced by MNOs worldwide
Innovation for the traditional smartphone finance plans & possible limitations
Conclusions – The future of the smartphone finance plan
LIST OF FIGURES
Figure 1 A table showing the exchange rates used in SnapShot
Figure 2 A table showing monthly pricing in USD per month for the Apple iPhone 1 5G 64 GB smartphone from selected MNOs worldwide
Figure 3 A chart showing the MNO Apple iPhone smartphone instalment pricing in USD per month from selected MNOs worldwide
Figure 4 A table listing the MNOs who offer a 36-month smartphone payment plan
Figure 5 A table showing examples of selected MNO premium usage plans combined with a device financing plan
Figure 6 A chart showing the types of additional services being offered by MNOs with the smartphone finance plan
Figure 7 A table showing the key features offered by selected MNO sub brand finance plans
Figure 8 A table showing examples of recent 5G smartphone promotions worldwide
Figure 1 A table showing the exchange rates used in SnapShot
Figure 2 A table showing monthly pricing in USD per month for the Apple iPhone 1 5G 64 GB smartphone from selected MNOs worldwide
Figure 3 A chart showing the MNO Apple iPhone smartphone instalment pricing in USD per month from selected MNOs worldwide
Figure 4 A table listing the MNOs who offer a 36-month smartphone payment plan
Figure 5 A table showing examples of selected MNO premium usage plans combined with a device financing plan
Figure 6 A chart showing the types of additional services being offered by MNOs with the smartphone finance plan
Figure 7 A table showing the key features offered by selected MNO sub brand finance plans
Figure 8 A table showing examples of recent 5G smartphone promotions worldwide
