New Models for Mobile Device Financing
By Susan Simmons, Raj John, and Eric Holzhauer
In the past decade, so much has changed: the way we use mobile devices, the type of devices we use,
and the amount we spend on now indispensable smartphones. Yet the traditional subsidy model –
the predominant financing model in most markets – has persisted and remained largely unchanged.
A number of forces are now pushing mobile operators to consider alternative financing models.
These same forces are also creating new opportunities for non-operators, including device OEMs,
retailers, and new entrants, to participate more extensively in mobile device financing.
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