Know-How Exchange : Strategy

Must admit, I always thought it was the network operators using marketing funds to subsidise handsets to sell people into contracts to use the airtime services...

I thought the handset manufacturers just lapped up the competition between network operators and enjoyed the prices they were getting.

hi there

echoing Chris, its mostly network operators, who use their marketing funds to subsidise Handsets and bundle them with their connection to sell.

but in booming cellular markets like Bangladesh, India, China a new trend of the just the opposite is appearing; handset manufacturers are selling their handsets after subsidizing the connection from network operators and selling the budled package to lure consumers to buy new handset.

Network operators are also very happy with this type of promotion by handset manufacturers as this increases the SIM/connection sales and increases the sub-base of operators. But the flip side is most of the cases this increases sub-based cannibilizaiton; one individual is having more than 1 SIM because he bought the Handset with free SIM but may be throwing that SIM or simply not activating it.

Nokia has been the most aggressive in doing this new bundling promotion, havent seen Samsung or others here in Bangladesh; but may be a different scene in China or India as in Bangladesh (and around the world) Nokia is the leader.

thats all for today, hope this helps.

cheers!!