Communication Breakdown
Communications from the world of, er, communications. And other stuff.
Friday 31 August 2007, 11:05 AM
The end of the subsidised handset?
As Fone Logistics' Julien Parven is quoted as saying: "This is starting to put some value back into the handset. The idea of £300 handsets being given away is ridiculous."
No kidding - as Nokia is so keen to point out with its N95 marketing, the smartphone is not so much a phone anymore, as a mini-computer with phone capabilities built in. Nice idea to be giving those away (it sure made me switch operators when I managed to get my Vario II for next to nothing), but it's clearly a situation that couldn't last forever.
PreviousComments on this post
The 'real' cost of handsets will also be highlighted as SIM-only deals (like the recent O2 launch) become increasingly popular.
Unlike many other European countries, it seems crazy that in the UK consumers are able to obtain the latest technology for free. In fact, the end of subsidised handsets may reduce the number of lost devices as users begin to show more care and respect for their phones. I am sure pre-pay deals for cheap, low end phones will not disappear but at the mid and high-end level of the market consumers should be prepared to pay.
To me - subsidisation is a legacy of a market where the drive was on growing users. We have now reached saturation and market conditions should begin to reflect this.
There is no such thing as a 'free' handset, you buy a handset on condition that you pay c£30 per month to the operator to 'pay' for the handset, oh and you get a few calls with that too. It is more like credit, buy now pay later, or whatever, but they are certainly not 'free'...
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