Home >> Technology & Media

Implications of Device Financing Plans and Lack of Handset Subsidies for Operator Profitability in Europe

Published: Mar-2017 | Format: PDF | GlobalData | Number of pages: 38 | Code: MRS - 115934

Implications of Device Financing Plans and Lack of Handset Subsidies for Operator Profitability in Europe


Summary

Operator profitability in the mobile segment in Europe is under pressure, particularly in more mature markets where expensive handsets are often subsidized in order to drive growth in high ARPU postpaid segments. In retracting device subsidy offers, operators have the potential to ease this financial pressure and lower the cost per customer acquisition, as discussed in Section 1. Such strategic shifts can merit rewards but are never risk-free. Section 2 contains specific European case studies (Germany, Netherlands, the United Kingdom and Bulgaria) where other device financing models have been adopted, in addition to the four operators in the US, with particular focus on financial performance. Section 3 focuses on the key factors that operators must take into account when adopting such models (e.g., regulations or consumer purchasing power) before a summary of key findings and recommendations is provided.

This report, 'Implications of Device Financing Plans and Lack of Handset Subsidies for Operator Profitability in Europe', part of the GlobalData series of Telecom Insider Reports for Europe, examines in detail the dynamics of the mobile devices market in terms of operator handset financing. Specifically, it includes analysis of strategic drivers and implications for operators that have moved away from the widely adopted handset subsidization model, instead looking to alternative methods such as equipment installment plans (EIPs) and leasing.

T-Mobile pioneered the EIP in the US telecom market via its Jump! Plan in 2013, as part of its ‘Un-carrier’ strategy to simplify and disrupt the consumer market. Since then, competitors AT&T, Verizon and Sprint have followed suit and now offer non-subsidized device financing plans. This report assesses the potential for similar levels of adoption in European markets.

Scope

- Subsidized handsets and lengthy contracts have been a common offering from many operators to support mobile subscriptions growth.
- Pressures on operator profitability in the mobile market may prompt European operators to adopt alternate, non-subsidized device financing models, if they haven’t already.
- If executed well, withdrawal of handset subsidies and adoption of new financing models can have a positive impact on operator profitability, while offering consumers greater transparency and flexibility.
- Strategic shifts concerning handset financing can have a negative impact on telcos if conditions are not right, as various case studies show.
- Constraints on SIM-locking, MNP and contract duration limits are factors for operators to consider when determining successful handset financing strategies. 

Reasons to buy

- This report examines the dynamics of the mobile devices market in Europe in terms of operator handset financing, providing stakeholders with an in depth view of the market and competitive landscape. Detailed analysis of diverse handset financing models (eg. subsidization, equipment instalment plans and leasing) and the implications for operators that have moved away from the widely adopted handset subsidization model, is invaluable when planning and aligning product offerings moving forwards. This report discusses the recent strategic move to non-subsidized financing plans in the USA and assesses the potential for similar levels of adoption in European markets.
- Helps executives build proactive, profitable growth strategies by offering comprehensive and relevant analysis of handset financing strategies in the European region, regulatory framework, competitive environment and operator best practises.
- The case studies, which give detailed analysis of the effects that alternative handset financing strategies have had on reported operator financial performance, focus on key European markets (Germany, Netherlands, UK, and Bulgaria) as well as the USA and can be beneficial to both local players and prospective market entrants.
- By understanding the interests and positions of key operators in the smartphones market, telecom professionals/operators can develop strategies and increase their market participation.
Table of Contents
Introduction
Section 1: Market Landscape
The subsidized handset model - drivers for operator adoption
Examples of operator handset subsidy models in Europe
Rationale for operators adopting alternative device financing models
Europe mobile market overview
Section 2: Case Studies
O2 My Handy (Germany)
KPN EIPs / Leasing
O2 Refresh (United Kingdom)
Telenor Lease (Bulgaria)
Synopsis of handset financing dynamics in the United States
Verizon Device Payments
AT&T Next
T-Mobile Jump! / Jump! On Demand
Sprint Lease
Section 3: Key Findings & Recommendations
Key considerations for operators when determining handset financing strategy
Overview of handset financing model types
Summary of key findings and recommendations
Appendix
About the authors
Contact information

                        
            

Inquiry For Buying

Please fill your details below, to inquire about this report:
Indicates required fields

Request Sample

Please fill your details below, to receive sample report:
Indicates required fields


Related Reports

Global Laser Market Research Report 2011-2023

Jul-2017 | HeyReport | Pages : 108 | Code : MRS-155457 | 3190

Summary The global Laser market will reach xxx Million USD in 2017 with CAGR xx% from 2018-2023. The objective of report is to define, segment, and project the market on the basis of product type, application, and region, and to describe the content about the factors influencing market dynamics, policy, economic, technology and market entry etc. Based on products type, the report describes major products type share of regional market. Products mentioned as follows: Leading vendors in the ma Read more

South Korea: Operator Investments in 5G and Fiber to Support Growth of IPTV and New Value-Added Services

Jul-2017 | GlobalData | Pages : 34 | Code : MRS-155261 | 990

South Korea: Operator Investments in 5G and Fiber to Support Growth of IPTV and New Value-Added Services Summary "South Korea: Operator Investments in 5G and Fiber to Support Growth of IPTV and New Value-Added Services", is a new Country Intelligence Report by GlobalData, provides an executive-level overview of the telecommunications market in South Korea today, with detailed forecasts of key indicators up to 2021. Published annually, the report provides detailed analysis of the near-term Read more

Malaysia: Expansion of High-Speed Wireless and Fixed Broadband Networks to Drive Telecom Market Growth

Jul-2017 | GlobalData | Pages : 39 | Code : MRS-155260 | 990

Malaysia: Expansion of High-Speed Wireless and Fixed Broadband Networks to Drive Telecom Market Growth Summary "Malaysia: Expansion of High-Speed Wireless and Fixed Broadband Networks to Drive Telecom Market Growth", is a new Country Intelligence Report by GlobalData, provides an executive-level overview of the telecommunications market in Malaysia today, with detailed forecasts of key indicators up to 2021. Published annually, the report provides detailed analysis of the near-term opport Read more

India: Intense Competition in Mobile Services Segment to Result in Market Consolidation

Jul-2017 | GlobalData | Pages : 46 | Code : MRS-155259 | 990

India: Intense Competition in Mobile Services Segment to Result in Market Consolidation Summary "India: Intense Competition in Mobile Services Segment to Result in Market Consolidation", a new Country Intelligence Report by GlobalData, provides an executive-level overview of the telecommunications market in India today, with detailed forecasts of key indicators up to 2021. Published annually, the report provides detailed analysis of the near-term opportunities, competitive dynamics and ev Read more

Guinea (Conakry): Mobile Network Expansion and Innovative VAS to Spur Telecom Growth

Jul-2017 | GlobalData | Pages : 30 | Code : MRS-155258 | 990

Guinea (Conakry): Mobile Network Expansion and Innovative VAS to Spur Telecom Growth Summary "Guinea (Conakry): Mobile Network Expansion and Innovative VAS to Spur Telecom Growth", a new Country Intelligence Report by GlobalData, provides an executive-level overview of the telecommunications market in Guinea Conakry today, with detailed forecasts of key indicators up to 2022. Published annually, the report provides detailed analysis of the near-term opportunities, competitive dynamics and Read more

2017 Global Nurse Call Systems Industry Research Report

Aug-2017 | HongChun | Pages : 120 | Code : MRS-155060 | 3000

The report provides a comprehensive analysis of the Nurse Call Systems industry market by types, applications, players and regions. This report also displays the production, Consumption, revenue, Gross margin, Cost, Gross, market share, CAGR, and Market influencing factors of the Nurse Call Systems industry in USA, EU, China,India, Japan and other regions, and forecast to 2022, from 2017. Market Analysis by Players 1. Rauland-Borg Corporation 2. Hill-Rom Holdings, Inc. 3. Ascom Holding AG Read more

2017 Global Compound Semiconductor Industry Research Report

Aug-2017 | HongChun | Pages : 120 | Code : MRS-155059 | 3000

The report provides a comprehensive analysis of the Compound Semiconductor industry market by types, applications, players and regions. This report also displays the production, Consumption, revenue, Gross margin, Cost, Gross, market share, CAGR, and Market influencing factors of the Compound Semiconductor industry in USA, EU, China,India, Japan and other regions, and forecast to 2022, from 2017. Market Analysis by Players Broadcom Skyworks Solutions Cree Qorvo Market Analysis by Regions: Read more

Global Natural Language Processing Market by Manufacturers, Countries, Type and Application, Forecast to 2022

Aug-2017 | Global Info Research | Pages : 120 | Code : MRS-154365 | 3480

Natural language processing (NLP) is the ability of a computer program to understand human speech as it is spoken. NLP is a component of artificial intelligence (AI). Scope of the Report: This report focuses on the Natural Language Processing in Global market, especially in North America, Europe and Asia-Pacific, South America, Middle East and Africa. This report categorizes the market based on manufacturers, regions, type and application. Market Segment by Manufacturers, this report Read more

Europe Fixed Satellite Service Market by Manufacturers, Countries, Type and Application, Forecast to 2022

Aug-2017 | Global Info Research | Pages : 124 | Code : MRS-154363 | 4480

An FSS is a type of service that uses geosynchronous satellites to broadcast through TV and radio, telecommunications, and satellite communication that are used by governments, military organizations, small and large enterprises, and other end-users. It can provide information to intelligence and security organizations. FSS is classified into wholesale services and managed services. The satellites used for FSS have low-power output and require larger dish-style antennas than direct broadcas Read more

Europe Contact Center Market by Manufacturers, Countries, Type and Application, Forecast to 2022

Aug-2017 | Global Info Research | Pages : 123 | Code : MRS-154362 | 4480

A contact center (also referred to as a customer interaction center or e-contact center) is a central point in an enterprise from which all customer contacts are managed. The contact center typically includes one or more online call centers but may include other types of customer contact as well, including e-mail newsletters, postal mail catalogs, Web site inquiries and chats, and the collection of information from customers during in-store purchasing. A contact center is generally part of Read more

Single User | $(USD)1195 View Pricing