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 Technology Industry Research Report 2017

Sep-2017 | Hong Chun Consult | Pages : 120 | Code : MRS-172371 | 3000

The report provides a comprehensive analysis of the Laser Technology 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 Laser Technology industry in USA, EU, China,India, Japan and other regions, and forecast to 2022, from 2017. Market Analysis by Players Coherent Inc Trumpf Group Rofin-Sinar Technologies Lumentum Holdings Market An Read more

Global Nurse Call Systems Industry Research Report 2017

Sep-2017 | Hong Chun Consult | Pages : 120 | Code : MRS-172370 | 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 Rauland-Borg Corporation Hill-Rom Holdings, Inc. Ascom Holding AG Honeywell Read more

Global CAE Software Industry Research Report 2017

Sep-2017 | Hong Chun Consult | Pages : 120 | Code : MRS-172058 | 3000

The report provides a comprehensive analysis of the CAE Software 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 CAE Software industry in USA, EU, China,India, Japan and other regions, and forecast to 2022, from 2017. Market Analysis by Players Siemens PLM Software ANSYS Dassault Systemes Hexagon AB MSC Software Alatir ESI PTC Aut Read more

Global Application Lifecycle Management Software Industry Research Report 2017

Sep-2017 | Hong Chun Consult | Pages : 120 | Code : MRS-172057 | 3000

The report provides a comprehensive analysis of the Application Lifecycle Management Software 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 Application Lifecycle Management Software industry in USA, EU, China,India, Japan and other regions, and forecast to 2022, from 2017. Market Analysis by Players HP Atlassian Techexcel IBM Mi Read more

Global Mobile Backend as a Service Industry Research Report 2017

Sep-2017 | Hong Chun Consult | Pages : 120 | Code : MRS-172056 | 3000

The report provides a comprehensive analysis of the Mobile Backend as a Service 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 Mobile Backend as a Service industry in USA, EU, China,India, Japan and other regions, and forecast to 2022, from 2017. Market Analysis by Players Oracle Corporation IBM Corporation Microsoft Corporation Read more

Global Wearable Technology Industry Research Report 2017

Sep-2017 | Hong Chun Consult | Pages : 120 | Code : MRS-172055 | 3000

The report provides a comprehensive analysis of the Wearable Technology 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 Wearable Technology industry in USA, EU, China,India, Japan and other regions, and forecast to 2022, from 2017. Market Analysis by Players Fitbit Apple Samsung Sony Motorola/Lenovo LG Pebble Garmin Huawei XIAO MI Read more

Global Cloud Computing Industry Research Report 2017

Sep-2017 | Hong Chun Consult | Pages : 120 | Code : MRS-172054 | 3000

The report provides a comprehensive analysis of the Cloud Computing 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 Cloud Computing industry in USA, EU, China,India, Japan and other regions, and forecast to 2022, from 2017. Market Analysis by Players Amazon Web Services Microsoft Azure IBM Aliyun Google Cloud Platform Salesforce R Read more

Global Unmanned Aircraft Systems Industry Research Report 2017

Sep-2017 | Hong Chun Consult | Pages : 120 | Code : MRS-172053 | 3000

The report provides a comprehensive analysis of the Unmanned Aircraft 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 Unmanned Aircraft Systems industry in USA, EU, China,India, Japan and other regions, and forecast to 2022, from 2017. Market Analysis by Players DJI Parrot 3D Robotics AscTec XAIRCRAFT Zero Tech AeroVironme Read more

Global Full Ice Protection System Industry Research Report 2017

Sep-2017 | Hong Chun Consult | Pages : 120 | Code : MRS-172052 | 3000

The report provides a comprehensive analysis of the Full Ice Protection System 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 Full Ice Protection System industry in USA, EU, China,India, Japan and other regions, and forecast to 2022, from 2017. Market Analysis by Players Honeywell Cox & Company Inc Curtiss-Wright Controls Avionic Read more

World Unmanned Aircraft Systems (UAS) Market Research Report 2022 (covering USA, Europe, China, Japan, India, South East Asia and etc)

Oct-2017 | ICRWorld Research | Pages : 101 | Code : MRS-171456 | 2960

Summary ICRWorld’s Unmanned Aircraft Systems (UAS) market research report provides the newest industry data and industry future trends, allowing you to identify the products and end users driving Revenue growth and profitability. The industry report lists the leading competitors and provides the insights strategic industry Analysis of the key factors influencing the market. The report includes the forecasts, Analysis and discussion of important industry trends, market size, market share es Read more

Single User | $(USD)1195 View Pricing