SlideShare una empresa de Scribd logo
1 de 1
Descargar para leer sin conexión
Handset Subsidies - Don't Shoot the Messenger
Posted by davidpringle on May 2, 2012 10:57:36 AM

Are handset subsidies wrecking the mobile telecoms industry?

In the battle to attract affluent customers, many European and North American mobile operators have
long been lavishing hefty subsidies on the most sought-after smartphones. Some commentators believe
this is highly damaging to operators' business.

The case against handset subsidies is basically this: They encourage consumers to buy a $400-$500
handset every two years, rather than, say, purchasing a $200-$300 handset every three years. That
means a disproportionate share of the consumer’s spending on mobile communications is being
siphoned off by handset manufacturers. If consumers were spending less on handsets, they might spend
more on services, enabling mobile operators to invest more in their networks and relieve congestion.

In parts of Europe, the need for more investment in mobile networks is becoming painfully apparent. In
central London, for example, the 3G signal on your smartphone can fade in and out even when you are
sitting still, as nearby handsets compete for network resources. Moreover, call quality, particularly
indoors, is sometimes poor.

But handset subsidies shouldn’t be blamed for the state of the mobile networks. Handset subsidies just
reflect market reality: The simple truth is that, right now, most Europeans place a higher value on the
look, feel and capabilities of their handset than they do on network quality. Even if handset subsidies
were made illegal, people would just take out a loan to buy whichever smartphone model they desire.
They would then search for the best value mobile tariff they could find.

The fundamental problem for mobile operators is that handsets are highly visible and highly tangible,
whereas wireless networks are not. But over time the value pendulum will likely swing back towards the
networks. Consumers and, particularly, business people will get increasingly frustrated with patchy or
sluggish Internet access, particularly if they are attempting to use cloud services. They will then seek out
mobile networks that can offer them better connectivity and they will be prepared to pay a premium for
it.

When network quality becomes a competitive differentiator again, investment will surely rise, just as it
has in the U.S. market with the race to 4G. Moreover, consumers’ current fixation with having the very
latest smartphones may pass as other devices get smarter and electronic screens proliferate. In time,
handsets may even become anonymous black boxes that stay in people’s pockets providing connectivity
and authentication for whichever device their owner happens to be using at the time, whether that be a
tablet, a headset or a pair of sunglasses with built-in displays.

In the meantime, don’t shoot the messenger - handset subsidies aren’t the problem. The problem is
perceived value. Right now, most people will pay a premium for smartphones, but not for smart
networks.

                   For more discussion on everything mobile, be sure to visit us here:
                    http://communities.cisco.com/community/solutions/sp/mobility

Más contenido relacionado

La actualidad más candente

State of the Global Mobile Consumer: Connectivity is core
State of the Global Mobile Consumer: Connectivity is coreState of the Global Mobile Consumer: Connectivity is core
State of the Global Mobile Consumer: Connectivity is coreErol Dizdar
 
App coverage in cities
App coverage in citiesApp coverage in cities
App coverage in citiesEricsson
 
Final hh - 13.12.20 - columbus root metrics release
Final   hh - 13.12.20 - columbus root metrics releaseFinal   hh - 13.12.20 - columbus root metrics release
Final hh - 13.12.20 - columbus root metrics releasehmhollingsworth
 
Trōv, the New Insurance App
Trōv, the New Insurance AppTrōv, the New Insurance App
Trōv, the New Insurance AppRobert Taurosa
 
Community Broadband Snapshot Report™ How to Navigate, Mitigate or Eliminate t...
Community Broadband Snapshot Report™ How to Navigate, Mitigate or Eliminate t...Community Broadband Snapshot Report™ How to Navigate, Mitigate or Eliminate t...
Community Broadband Snapshot Report™ How to Navigate, Mitigate or Eliminate t...Ed Dodds
 
Intro mobile marketing
Intro   mobile marketingIntro   mobile marketing
Intro mobile marketingPaul Hadley
 
Future of connectivity An initial perspective by Hossein Moiin, EVP and CTO a...
Future of connectivity An initial perspective by Hossein Moiin, EVP and CTO a...Future of connectivity An initial perspective by Hossein Moiin, EVP and CTO a...
Future of connectivity An initial perspective by Hossein Moiin, EVP and CTO a...Future Agenda
 
Mobile Customer Information
Mobile Customer InformationMobile Customer Information
Mobile Customer InformationWalter Adamson
 
5 things to change the face of mobile
5 things to change the face of mobile5 things to change the face of mobile
5 things to change the face of mobileRaymond Lee
 
Generation Now: Diverse. Connected. On-the-go. (Keynote at Social Media Atlan...
Generation Now: Diverse. Connected. On-the-go. (Keynote at Social Media Atlan...Generation Now: Diverse. Connected. On-the-go. (Keynote at Social Media Atlan...
Generation Now: Diverse. Connected. On-the-go. (Keynote at Social Media Atlan...Michael Marlatt
 
The Performance of Streaming
The Performance of StreamingThe Performance of Streaming
The Performance of StreamingEricsson
 
What Do Consumers Want from Public Wi-Fi? Gain Insights from Cisco's Mobile C...
What Do Consumers Want from Public Wi-Fi? Gain Insights from Cisco's Mobile C...What Do Consumers Want from Public Wi-Fi? Gain Insights from Cisco's Mobile C...
What Do Consumers Want from Public Wi-Fi? Gain Insights from Cisco's Mobile C...Cisco Service Provider
 
Crosby Sprint DSL PR 2
Crosby Sprint DSL PR 2Crosby Sprint DSL PR 2
Crosby Sprint DSL PR 2Greg Crosby
 
Innovation Africa Digital (IAD) Summit 2013 Keynote Presentation - Emerging M...
Innovation Africa Digital (IAD) Summit 2013 Keynote Presentation - Emerging M...Innovation Africa Digital (IAD) Summit 2013 Keynote Presentation - Emerging M...
Innovation Africa Digital (IAD) Summit 2013 Keynote Presentation - Emerging M...upstreamsystems
 
The Evolution of VoIP-A look into how VoIP has proliferated into the global d...
The Evolution of VoIP-A look into how VoIP has proliferated into the global d...The Evolution of VoIP-A look into how VoIP has proliferated into the global d...
The Evolution of VoIP-A look into how VoIP has proliferated into the global d...Bradley Susser
 
13.2.22 gongwer ohio report columbus capex
13.2.22 gongwer ohio report   columbus capex13.2.22 gongwer ohio report   columbus capex
13.2.22 gongwer ohio report columbus capexhmhollingsworth
 
Verizon communication project report
Verizon communication project reportVerizon communication project report
Verizon communication project reportNishit Upadhyay
 

La actualidad más candente (20)

State of the Global Mobile Consumer: Connectivity is core
State of the Global Mobile Consumer: Connectivity is coreState of the Global Mobile Consumer: Connectivity is core
State of the Global Mobile Consumer: Connectivity is core
 
App coverage in cities
App coverage in citiesApp coverage in cities
App coverage in cities
 
Final hh - 13.12.20 - columbus root metrics release
Final   hh - 13.12.20 - columbus root metrics releaseFinal   hh - 13.12.20 - columbus root metrics release
Final hh - 13.12.20 - columbus root metrics release
 
Trōv, the New Insurance App
Trōv, the New Insurance AppTrōv, the New Insurance App
Trōv, the New Insurance App
 
Community Broadband Snapshot Report™ How to Navigate, Mitigate or Eliminate t...
Community Broadband Snapshot Report™ How to Navigate, Mitigate or Eliminate t...Community Broadband Snapshot Report™ How to Navigate, Mitigate or Eliminate t...
Community Broadband Snapshot Report™ How to Navigate, Mitigate or Eliminate t...
 
Intro mobile marketing
Intro   mobile marketingIntro   mobile marketing
Intro mobile marketing
 
Future of connectivity An initial perspective by Hossein Moiin, EVP and CTO a...
Future of connectivity An initial perspective by Hossein Moiin, EVP and CTO a...Future of connectivity An initial perspective by Hossein Moiin, EVP and CTO a...
Future of connectivity An initial perspective by Hossein Moiin, EVP and CTO a...
 
Mobile Customer Information
Mobile Customer InformationMobile Customer Information
Mobile Customer Information
 
Mobile marketing
Mobile marketingMobile marketing
Mobile marketing
 
5 things to change the face of mobile
5 things to change the face of mobile5 things to change the face of mobile
5 things to change the face of mobile
 
Generation Now: Diverse. Connected. On-the-go. (Keynote at Social Media Atlan...
Generation Now: Diverse. Connected. On-the-go. (Keynote at Social Media Atlan...Generation Now: Diverse. Connected. On-the-go. (Keynote at Social Media Atlan...
Generation Now: Diverse. Connected. On-the-go. (Keynote at Social Media Atlan...
 
Promo doc tegtdc
Promo doc tegtdcPromo doc tegtdc
Promo doc tegtdc
 
The Performance of Streaming
The Performance of StreamingThe Performance of Streaming
The Performance of Streaming
 
What Do Consumers Want from Public Wi-Fi? Gain Insights from Cisco's Mobile C...
What Do Consumers Want from Public Wi-Fi? Gain Insights from Cisco's Mobile C...What Do Consumers Want from Public Wi-Fi? Gain Insights from Cisco's Mobile C...
What Do Consumers Want from Public Wi-Fi? Gain Insights from Cisco's Mobile C...
 
Crosby Sprint DSL PR 2
Crosby Sprint DSL PR 2Crosby Sprint DSL PR 2
Crosby Sprint DSL PR 2
 
Innovation Africa Digital (IAD) Summit 2013 Keynote Presentation - Emerging M...
Innovation Africa Digital (IAD) Summit 2013 Keynote Presentation - Emerging M...Innovation Africa Digital (IAD) Summit 2013 Keynote Presentation - Emerging M...
Innovation Africa Digital (IAD) Summit 2013 Keynote Presentation - Emerging M...
 
The Evolution of VoIP-A look into how VoIP has proliferated into the global d...
The Evolution of VoIP-A look into how VoIP has proliferated into the global d...The Evolution of VoIP-A look into how VoIP has proliferated into the global d...
The Evolution of VoIP-A look into how VoIP has proliferated into the global d...
 
Blackberry’S Blues
Blackberry’S BluesBlackberry’S Blues
Blackberry’S Blues
 
13.2.22 gongwer ohio report columbus capex
13.2.22 gongwer ohio report   columbus capex13.2.22 gongwer ohio report   columbus capex
13.2.22 gongwer ohio report columbus capex
 
Verizon communication project report
Verizon communication project reportVerizon communication project report
Verizon communication project report
 

Destacado

IMS IP multimedia subsystem presentation
IMS IP multimedia subsystem presentationIMS IP multimedia subsystem presentation
IMS IP multimedia subsystem presentationWaldir R. Pires Jr
 
IMS Registration Flow
IMS Registration FlowIMS Registration Flow
IMS Registration FlowKent Loh
 
CAPACITY PLANNING
CAPACITY PLANNING CAPACITY PLANNING
CAPACITY PLANNING 889222
 
Capacity Planning
Capacity PlanningCapacity Planning
Capacity PlanningMOHD ARISH
 

Destacado (8)

DMP_CV_2015_v1.5
DMP_CV_2015_v1.5DMP_CV_2015_v1.5
DMP_CV_2015_v1.5
 
IMS IP multimedia subsystem presentation
IMS IP multimedia subsystem presentationIMS IP multimedia subsystem presentation
IMS IP multimedia subsystem presentation
 
SlideShare Networks
SlideShare NetworksSlideShare Networks
SlideShare Networks
 
IMS Registration Flow
IMS Registration FlowIMS Registration Flow
IMS Registration Flow
 
Circuit Switching
Circuit SwitchingCircuit Switching
Circuit Switching
 
CAPACITY PLANNING
CAPACITY PLANNING CAPACITY PLANNING
CAPACITY PLANNING
 
Capacity planning
Capacity planning Capacity planning
Capacity planning
 
Capacity Planning
Capacity PlanningCapacity Planning
Capacity Planning
 

Similar a Handset Subsidies- Don't Shoot the Messenger

Reliance On Technology
Reliance On TechnologyReliance On Technology
Reliance On TechnologyJill Ailts
 
My Original "Business Plan"
My Original "Business Plan"My Original "Business Plan"
My Original "Business Plan"John Cochrane
 
Mobil Commerce Essay
Mobil Commerce EssayMobil Commerce Essay
Mobil Commerce EssayAngel Ashford
 
Fiber-Optic Telecommunications Systems
Fiber-Optic Telecommunications SystemsFiber-Optic Telecommunications Systems
Fiber-Optic Telecommunications SystemsAngela Washington
 
Present Wireless Scenario Consists Of Homogeneous Network...
Present Wireless Scenario Consists Of Homogeneous Network...Present Wireless Scenario Consists Of Homogeneous Network...
Present Wireless Scenario Consists Of Homogeneous Network...Nina Vazquez
 
Trust in the mobile internet of things
Trust in the mobile internet of thingsTrust in the mobile internet of things
Trust in the mobile internet of thingsAntonio Gonzalo
 
Wireless Technologies Essay
Wireless Technologies EssayWireless Technologies Essay
Wireless Technologies EssayKendra Cote
 
An expanded view by data plan size, OS, device type and LTE
An expanded view by data plan size, OS, device type and LTEAn expanded view by data plan size, OS, device type and LTE
An expanded view by data plan size, OS, device type and LTEDavid Martin
 
Spotlight Connected Intelligence
Spotlight Connected IntelligenceSpotlight Connected Intelligence
Spotlight Connected IntelligenceBattenCompany
 
Wireless at a Crossroads
Wireless at a CrossroadsWireless at a Crossroads
Wireless at a CrossroadsCognizant
 
Integrasco social media case study re vodafone 23 11 10
Integrasco social media case study re vodafone   23 11 10Integrasco social media case study re vodafone   23 11 10
Integrasco social media case study re vodafone 23 11 10olliehenderson
 
(Sept 2009) The state of Wireless in Canada
(Sept 2009) The state of Wireless in Canada(Sept 2009) The state of Wireless in Canada
(Sept 2009) The state of Wireless in Canadathomas.purves
 
Get Telecoms Smart - 5G
Get Telecoms Smart - 5GGet Telecoms Smart - 5G
Get Telecoms Smart - 5Gemmersons1
 
CPP contactless and mobile payments white paper 2011
CPP contactless and mobile payments white paper 2011CPP contactless and mobile payments white paper 2011
CPP contactless and mobile payments white paper 2011CPPGroup Plc
 
WiFi Offload Survival Guide - Part 4
WiFi Offload Survival Guide - Part 4WiFi Offload Survival Guide - Part 4
WiFi Offload Survival Guide - Part 4Green Packet
 
youngtel peer awards
youngtel peer awardsyoungtel peer awards
youngtel peer awardsguestcd9646
 
Vodafone: A Social Media Engagement Case Study - Aleksander Stensby and Neil ...
Vodafone: A Social Media Engagement Case Study - Aleksander Stensby and Neil ...Vodafone: A Social Media Engagement Case Study - Aleksander Stensby and Neil ...
Vodafone: A Social Media Engagement Case Study - Aleksander Stensby and Neil ...Influence People
 

Similar a Handset Subsidies- Don't Shoot the Messenger (20)

MVNO 2.0: The Resurgence of MVNOs in the US
MVNO 2.0: The Resurgence of MVNOs in the USMVNO 2.0: The Resurgence of MVNOs in the US
MVNO 2.0: The Resurgence of MVNOs in the US
 
Reliance On Technology
Reliance On TechnologyReliance On Technology
Reliance On Technology
 
My Original "Business Plan"
My Original "Business Plan"My Original "Business Plan"
My Original "Business Plan"
 
The Stupid Network
The Stupid NetworkThe Stupid Network
The Stupid Network
 
Mobil Commerce Essay
Mobil Commerce EssayMobil Commerce Essay
Mobil Commerce Essay
 
Fiber-Optic Telecommunications Systems
Fiber-Optic Telecommunications SystemsFiber-Optic Telecommunications Systems
Fiber-Optic Telecommunications Systems
 
Present Wireless Scenario Consists Of Homogeneous Network...
Present Wireless Scenario Consists Of Homogeneous Network...Present Wireless Scenario Consists Of Homogeneous Network...
Present Wireless Scenario Consists Of Homogeneous Network...
 
Trust in the mobile internet of things
Trust in the mobile internet of thingsTrust in the mobile internet of things
Trust in the mobile internet of things
 
Wireless Technologies Essay
Wireless Technologies EssayWireless Technologies Essay
Wireless Technologies Essay
 
An expanded view by data plan size, OS, device type and LTE
An expanded view by data plan size, OS, device type and LTEAn expanded view by data plan size, OS, device type and LTE
An expanded view by data plan size, OS, device type and LTE
 
Spotlight Connected Intelligence
Spotlight Connected IntelligenceSpotlight Connected Intelligence
Spotlight Connected Intelligence
 
Wireless at a Crossroads
Wireless at a CrossroadsWireless at a Crossroads
Wireless at a Crossroads
 
Integrasco social media case study re vodafone 23 11 10
Integrasco social media case study re vodafone   23 11 10Integrasco social media case study re vodafone   23 11 10
Integrasco social media case study re vodafone 23 11 10
 
(Sept 2009) The state of Wireless in Canada
(Sept 2009) The state of Wireless in Canada(Sept 2009) The state of Wireless in Canada
(Sept 2009) The state of Wireless in Canada
 
Get Telecoms Smart - 5G
Get Telecoms Smart - 5GGet Telecoms Smart - 5G
Get Telecoms Smart - 5G
 
AT &Amp; T Essay
AT &Amp; T EssayAT &Amp; T Essay
AT &Amp; T Essay
 
CPP contactless and mobile payments white paper 2011
CPP contactless and mobile payments white paper 2011CPP contactless and mobile payments white paper 2011
CPP contactless and mobile payments white paper 2011
 
WiFi Offload Survival Guide - Part 4
WiFi Offload Survival Guide - Part 4WiFi Offload Survival Guide - Part 4
WiFi Offload Survival Guide - Part 4
 
youngtel peer awards
youngtel peer awardsyoungtel peer awards
youngtel peer awards
 
Vodafone: A Social Media Engagement Case Study - Aleksander Stensby and Neil ...
Vodafone: A Social Media Engagement Case Study - Aleksander Stensby and Neil ...Vodafone: A Social Media Engagement Case Study - Aleksander Stensby and Neil ...
Vodafone: A Social Media Engagement Case Study - Aleksander Stensby and Neil ...
 

Más de Cisco Service Provider Mobility

Service Provider Wi-Fi Networks: Scaling Signaling Transactions (White Paper)
Service Provider Wi-Fi Networks:  Scaling Signaling Transactions (White Paper)Service Provider Wi-Fi Networks:  Scaling Signaling Transactions (White Paper)
Service Provider Wi-Fi Networks: Scaling Signaling Transactions (White Paper)Cisco Service Provider Mobility
 
Unveiling the Monetization Opportunities for Carrier Wi-Fi
Unveiling the Monetization Opportunities for Carrier Wi-FiUnveiling the Monetization Opportunities for Carrier Wi-Fi
Unveiling the Monetization Opportunities for Carrier Wi-FiCisco Service Provider Mobility
 
Wi-Fi–Enabled Value-Added Services: Gain Insights from Cisco Mobile Customer...
Wi-Fi–Enabled Value-Added  Services: Gain Insights from Cisco Mobile Customer...Wi-Fi–Enabled Value-Added  Services: Gain Insights from Cisco Mobile Customer...
Wi-Fi–Enabled Value-Added Services: Gain Insights from Cisco Mobile Customer...Cisco Service Provider Mobility
 
Simulate IP Fast Reroute Loop-Free Alternate (LFA) White Paper
Simulate IP Fast Reroute Loop-Free Alternate (LFA) White PaperSimulate IP Fast Reroute Loop-Free Alternate (LFA) White Paper
Simulate IP Fast Reroute Loop-Free Alternate (LFA) White PaperCisco Service Provider Mobility
 
Planning and Designing Networks with the Cisco MATE Portfolio (White Paper)
Planning and Designing Networks with the Cisco MATE Portfolio (White Paper)Planning and Designing Networks with the Cisco MATE Portfolio (White Paper)
Planning and Designing Networks with the Cisco MATE Portfolio (White Paper)Cisco Service Provider Mobility
 
Model Complex Routing with Cisco MATE Design External Endpoints (White Paper)
Model Complex Routing with Cisco MATE Design External Endpoints (White Paper)Model Complex Routing with Cisco MATE Design External Endpoints (White Paper)
Model Complex Routing with Cisco MATE Design External Endpoints (White Paper)Cisco Service Provider Mobility
 
IP Network Control Turning an Art into a Science (Customer Case Study)
IP Network Control Turning an Art into a Science (Customer Case Study)IP Network Control Turning an Art into a Science (Customer Case Study)
IP Network Control Turning an Art into a Science (Customer Case Study)Cisco Service Provider Mobility
 
Forecasting Traffic Growth and Impact with Cisco MATE Design (White Paper)
Forecasting Traffic Growth and Impact with Cisco MATE Design (White Paper)Forecasting Traffic Growth and Impact with Cisco MATE Design (White Paper)
Forecasting Traffic Growth and Impact with Cisco MATE Design (White Paper)Cisco Service Provider Mobility
 
Data Center Migration and Network Bandwidth Assessments with Cisco MATE Desig...
Data Center Migration and Network Bandwidth Assessments with Cisco MATE Desig...Data Center Migration and Network Bandwidth Assessments with Cisco MATE Desig...
Data Center Migration and Network Bandwidth Assessments with Cisco MATE Desig...Cisco Service Provider Mobility
 
El futuro cinematográfico de la industria inalámbrica
El futuro cinematográfico de la industria inalámbrica El futuro cinematográfico de la industria inalámbrica
El futuro cinematográfico de la industria inalámbrica Cisco Service Provider Mobility
 
Architecture for Mobile Data Offload over Wi-Fi Access Networks (White Paper)
Architecture for Mobile Data Offload over Wi-Fi Access Networks (White Paper)Architecture for Mobile Data Offload over Wi-Fi Access Networks (White Paper)
Architecture for Mobile Data Offload over Wi-Fi Access Networks (White Paper)Cisco Service Provider Mobility
 
Building Accurate Traffic Matrices with Demand Deduction (White Paper)
Building Accurate Traffic Matrices with Demand Deduction (White Paper)Building Accurate Traffic Matrices with Demand Deduction (White Paper)
Building Accurate Traffic Matrices with Demand Deduction (White Paper)Cisco Service Provider Mobility
 
Next-Generation Knowledge Workers TweetChat – Transcript
Next-Generation Knowledge Workers TweetChat – TranscriptNext-Generation Knowledge Workers TweetChat – Transcript
Next-Generation Knowledge Workers TweetChat – TranscriptCisco Service Provider Mobility
 

Más de Cisco Service Provider Mobility (20)

Cisco quantum policy suite
Cisco quantum policy suiteCisco quantum policy suite
Cisco quantum policy suite
 
Cisco Use Case: Location-Based Advertising
Cisco Use Case: Location-Based AdvertisingCisco Use Case: Location-Based Advertising
Cisco Use Case: Location-Based Advertising
 
Service Provider Wi-Fi Networks: Scaling Signaling Transactions (White Paper)
Service Provider Wi-Fi Networks:  Scaling Signaling Transactions (White Paper)Service Provider Wi-Fi Networks:  Scaling Signaling Transactions (White Paper)
Service Provider Wi-Fi Networks: Scaling Signaling Transactions (White Paper)
 
Unveiling the Monetization Opportunities for Carrier Wi-Fi
Unveiling the Monetization Opportunities for Carrier Wi-FiUnveiling the Monetization Opportunities for Carrier Wi-Fi
Unveiling the Monetization Opportunities for Carrier Wi-Fi
 
Wi-Fi–Enabled Value-Added Services: Gain Insights from Cisco Mobile Customer...
Wi-Fi–Enabled Value-Added  Services: Gain Insights from Cisco Mobile Customer...Wi-Fi–Enabled Value-Added  Services: Gain Insights from Cisco Mobile Customer...
Wi-Fi–Enabled Value-Added Services: Gain Insights from Cisco Mobile Customer...
 
Defining the Business Case for Carrier-Grade Wi-Fi
Defining the Business Case for Carrier-Grade Wi-FiDefining the Business Case for Carrier-Grade Wi-Fi
Defining the Business Case for Carrier-Grade Wi-Fi
 
Simulate IP Fast Reroute Loop-Free Alternate (LFA) White Paper
Simulate IP Fast Reroute Loop-Free Alternate (LFA) White PaperSimulate IP Fast Reroute Loop-Free Alternate (LFA) White Paper
Simulate IP Fast Reroute Loop-Free Alternate (LFA) White Paper
 
Planning and Designing Networks with the Cisco MATE Portfolio (White Paper)
Planning and Designing Networks with the Cisco MATE Portfolio (White Paper)Planning and Designing Networks with the Cisco MATE Portfolio (White Paper)
Planning and Designing Networks with the Cisco MATE Portfolio (White Paper)
 
SP Wi-Fi Monetization Thought Leadership
SP Wi-Fi Monetization Thought LeadershipSP Wi-Fi Monetization Thought Leadership
SP Wi-Fi Monetization Thought Leadership
 
Small Cells in the Enterprise
Small Cells in the EnterpriseSmall Cells in the Enterprise
Small Cells in the Enterprise
 
Model Complex Routing with Cisco MATE Design External Endpoints (White Paper)
Model Complex Routing with Cisco MATE Design External Endpoints (White Paper)Model Complex Routing with Cisco MATE Design External Endpoints (White Paper)
Model Complex Routing with Cisco MATE Design External Endpoints (White Paper)
 
IP Network Control Turning an Art into a Science (Customer Case Study)
IP Network Control Turning an Art into a Science (Customer Case Study)IP Network Control Turning an Art into a Science (Customer Case Study)
IP Network Control Turning an Art into a Science (Customer Case Study)
 
Forecasting Traffic Growth and Impact with Cisco MATE Design (White Paper)
Forecasting Traffic Growth and Impact with Cisco MATE Design (White Paper)Forecasting Traffic Growth and Impact with Cisco MATE Design (White Paper)
Forecasting Traffic Growth and Impact with Cisco MATE Design (White Paper)
 
5G: Your Questions Answered
5G: Your Questions Answered5G: Your Questions Answered
5G: Your Questions Answered
 
Data Center Migration and Network Bandwidth Assessments with Cisco MATE Desig...
Data Center Migration and Network Bandwidth Assessments with Cisco MATE Desig...Data Center Migration and Network Bandwidth Assessments with Cisco MATE Desig...
Data Center Migration and Network Bandwidth Assessments with Cisco MATE Desig...
 
El futuro cinematográfico de la industria inalámbrica
El futuro cinematográfico de la industria inalámbrica El futuro cinematográfico de la industria inalámbrica
El futuro cinematográfico de la industria inalámbrica
 
MATE Design (Data Sheet)
MATE Design (Data Sheet)MATE Design (Data Sheet)
MATE Design (Data Sheet)
 
Architecture for Mobile Data Offload over Wi-Fi Access Networks (White Paper)
Architecture for Mobile Data Offload over Wi-Fi Access Networks (White Paper)Architecture for Mobile Data Offload over Wi-Fi Access Networks (White Paper)
Architecture for Mobile Data Offload over Wi-Fi Access Networks (White Paper)
 
Building Accurate Traffic Matrices with Demand Deduction (White Paper)
Building Accurate Traffic Matrices with Demand Deduction (White Paper)Building Accurate Traffic Matrices with Demand Deduction (White Paper)
Building Accurate Traffic Matrices with Demand Deduction (White Paper)
 
Next-Generation Knowledge Workers TweetChat – Transcript
Next-Generation Knowledge Workers TweetChat – TranscriptNext-Generation Knowledge Workers TweetChat – Transcript
Next-Generation Knowledge Workers TweetChat – Transcript
 

Último

IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019IES VE
 
Machine Learning Model Validation (Aijun Zhang 2024).pdf
Machine Learning Model Validation (Aijun Zhang 2024).pdfMachine Learning Model Validation (Aijun Zhang 2024).pdf
Machine Learning Model Validation (Aijun Zhang 2024).pdfAijun Zhang
 
AI Fame Rush Review – Virtual Influencer Creation In Just Minutes
AI Fame Rush Review – Virtual Influencer Creation In Just MinutesAI Fame Rush Review – Virtual Influencer Creation In Just Minutes
AI Fame Rush Review – Virtual Influencer Creation In Just MinutesMd Hossain Ali
 
Igniting Next Level Productivity with AI-Infused Data Integration Workflows
Igniting Next Level Productivity with AI-Infused Data Integration WorkflowsIgniting Next Level Productivity with AI-Infused Data Integration Workflows
Igniting Next Level Productivity with AI-Infused Data Integration WorkflowsSafe Software
 
All in AI: LLM Landscape & RAG in 2024 with Mark Ryan (Google) & Jerry Liu (L...
All in AI: LLM Landscape & RAG in 2024 with Mark Ryan (Google) & Jerry Liu (L...All in AI: LLM Landscape & RAG in 2024 with Mark Ryan (Google) & Jerry Liu (L...
All in AI: LLM Landscape & RAG in 2024 with Mark Ryan (Google) & Jerry Liu (L...Daniel Zivkovic
 
20230202 - Introduction to tis-py
20230202 - Introduction to tis-py20230202 - Introduction to tis-py
20230202 - Introduction to tis-pyJamie (Taka) Wang
 
9 Steps For Building Winning Founding Team
9 Steps For Building Winning Founding Team9 Steps For Building Winning Founding Team
9 Steps For Building Winning Founding TeamAdam Moalla
 
COMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a WebsiteCOMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a Websitedgelyza
 
UiPath Solutions Management Preview - Northern CA Chapter - March 22.pdf
UiPath Solutions Management Preview - Northern CA Chapter - March 22.pdfUiPath Solutions Management Preview - Northern CA Chapter - March 22.pdf
UiPath Solutions Management Preview - Northern CA Chapter - March 22.pdfDianaGray10
 
Bird eye's view on Camunda open source ecosystem
Bird eye's view on Camunda open source ecosystemBird eye's view on Camunda open source ecosystem
Bird eye's view on Camunda open source ecosystemAsko Soukka
 
Comparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and IstioComparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and IstioChristian Posta
 
Salesforce Miami User Group Event - 1st Quarter 2024
Salesforce Miami User Group Event - 1st Quarter 2024Salesforce Miami User Group Event - 1st Quarter 2024
Salesforce Miami User Group Event - 1st Quarter 2024SkyPlanner
 
The Kubernetes Gateway API and its role in Cloud Native API Management
The Kubernetes Gateway API and its role in Cloud Native API ManagementThe Kubernetes Gateway API and its role in Cloud Native API Management
The Kubernetes Gateway API and its role in Cloud Native API ManagementNuwan Dias
 
COMPUTER 10: Lesson 7 - File Storage and Online Collaboration
COMPUTER 10: Lesson 7 - File Storage and Online CollaborationCOMPUTER 10: Lesson 7 - File Storage and Online Collaboration
COMPUTER 10: Lesson 7 - File Storage and Online Collaborationbruanjhuli
 
UiPath Platform: The Backend Engine Powering Your Automation - Session 1
UiPath Platform: The Backend Engine Powering Your Automation - Session 1UiPath Platform: The Backend Engine Powering Your Automation - Session 1
UiPath Platform: The Backend Engine Powering Your Automation - Session 1DianaGray10
 
VoIP Service and Marketing using Odoo and Asterisk PBX
VoIP Service and Marketing using Odoo and Asterisk PBXVoIP Service and Marketing using Odoo and Asterisk PBX
VoIP Service and Marketing using Odoo and Asterisk PBXTarek Kalaji
 
99.99% of Your Traces Are (Probably) Trash (SRECon NA 2024).pdf
99.99% of Your Traces  Are (Probably) Trash (SRECon NA 2024).pdf99.99% of Your Traces  Are (Probably) Trash (SRECon NA 2024).pdf
99.99% of Your Traces Are (Probably) Trash (SRECon NA 2024).pdfPaige Cruz
 
Cybersecurity Workshop #1.pptx
Cybersecurity Workshop #1.pptxCybersecurity Workshop #1.pptx
Cybersecurity Workshop #1.pptxGDSC PJATK
 
100+ ChatGPT Prompts for SEO Optimization
100+ ChatGPT Prompts for SEO Optimization100+ ChatGPT Prompts for SEO Optimization
100+ ChatGPT Prompts for SEO Optimizationarrow10202532yuvraj
 
Using IESVE for Loads, Sizing and Heat Pump Modeling to Achieve Decarbonization
Using IESVE for Loads, Sizing and Heat Pump Modeling to Achieve DecarbonizationUsing IESVE for Loads, Sizing and Heat Pump Modeling to Achieve Decarbonization
Using IESVE for Loads, Sizing and Heat Pump Modeling to Achieve DecarbonizationIES VE
 

Último (20)

IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
 
Machine Learning Model Validation (Aijun Zhang 2024).pdf
Machine Learning Model Validation (Aijun Zhang 2024).pdfMachine Learning Model Validation (Aijun Zhang 2024).pdf
Machine Learning Model Validation (Aijun Zhang 2024).pdf
 
AI Fame Rush Review – Virtual Influencer Creation In Just Minutes
AI Fame Rush Review – Virtual Influencer Creation In Just MinutesAI Fame Rush Review – Virtual Influencer Creation In Just Minutes
AI Fame Rush Review – Virtual Influencer Creation In Just Minutes
 
Igniting Next Level Productivity with AI-Infused Data Integration Workflows
Igniting Next Level Productivity with AI-Infused Data Integration WorkflowsIgniting Next Level Productivity with AI-Infused Data Integration Workflows
Igniting Next Level Productivity with AI-Infused Data Integration Workflows
 
All in AI: LLM Landscape & RAG in 2024 with Mark Ryan (Google) & Jerry Liu (L...
All in AI: LLM Landscape & RAG in 2024 with Mark Ryan (Google) & Jerry Liu (L...All in AI: LLM Landscape & RAG in 2024 with Mark Ryan (Google) & Jerry Liu (L...
All in AI: LLM Landscape & RAG in 2024 with Mark Ryan (Google) & Jerry Liu (L...
 
20230202 - Introduction to tis-py
20230202 - Introduction to tis-py20230202 - Introduction to tis-py
20230202 - Introduction to tis-py
 
9 Steps For Building Winning Founding Team
9 Steps For Building Winning Founding Team9 Steps For Building Winning Founding Team
9 Steps For Building Winning Founding Team
 
COMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a WebsiteCOMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a Website
 
UiPath Solutions Management Preview - Northern CA Chapter - March 22.pdf
UiPath Solutions Management Preview - Northern CA Chapter - March 22.pdfUiPath Solutions Management Preview - Northern CA Chapter - March 22.pdf
UiPath Solutions Management Preview - Northern CA Chapter - March 22.pdf
 
Bird eye's view on Camunda open source ecosystem
Bird eye's view on Camunda open source ecosystemBird eye's view on Camunda open source ecosystem
Bird eye's view on Camunda open source ecosystem
 
Comparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and IstioComparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and Istio
 
Salesforce Miami User Group Event - 1st Quarter 2024
Salesforce Miami User Group Event - 1st Quarter 2024Salesforce Miami User Group Event - 1st Quarter 2024
Salesforce Miami User Group Event - 1st Quarter 2024
 
The Kubernetes Gateway API and its role in Cloud Native API Management
The Kubernetes Gateway API and its role in Cloud Native API ManagementThe Kubernetes Gateway API and its role in Cloud Native API Management
The Kubernetes Gateway API and its role in Cloud Native API Management
 
COMPUTER 10: Lesson 7 - File Storage and Online Collaboration
COMPUTER 10: Lesson 7 - File Storage and Online CollaborationCOMPUTER 10: Lesson 7 - File Storage and Online Collaboration
COMPUTER 10: Lesson 7 - File Storage and Online Collaboration
 
UiPath Platform: The Backend Engine Powering Your Automation - Session 1
UiPath Platform: The Backend Engine Powering Your Automation - Session 1UiPath Platform: The Backend Engine Powering Your Automation - Session 1
UiPath Platform: The Backend Engine Powering Your Automation - Session 1
 
VoIP Service and Marketing using Odoo and Asterisk PBX
VoIP Service and Marketing using Odoo and Asterisk PBXVoIP Service and Marketing using Odoo and Asterisk PBX
VoIP Service and Marketing using Odoo and Asterisk PBX
 
99.99% of Your Traces Are (Probably) Trash (SRECon NA 2024).pdf
99.99% of Your Traces  Are (Probably) Trash (SRECon NA 2024).pdf99.99% of Your Traces  Are (Probably) Trash (SRECon NA 2024).pdf
99.99% of Your Traces Are (Probably) Trash (SRECon NA 2024).pdf
 
Cybersecurity Workshop #1.pptx
Cybersecurity Workshop #1.pptxCybersecurity Workshop #1.pptx
Cybersecurity Workshop #1.pptx
 
100+ ChatGPT Prompts for SEO Optimization
100+ ChatGPT Prompts for SEO Optimization100+ ChatGPT Prompts for SEO Optimization
100+ ChatGPT Prompts for SEO Optimization
 
Using IESVE for Loads, Sizing and Heat Pump Modeling to Achieve Decarbonization
Using IESVE for Loads, Sizing and Heat Pump Modeling to Achieve DecarbonizationUsing IESVE for Loads, Sizing and Heat Pump Modeling to Achieve Decarbonization
Using IESVE for Loads, Sizing and Heat Pump Modeling to Achieve Decarbonization
 

Handset Subsidies- Don't Shoot the Messenger

  • 1. Handset Subsidies - Don't Shoot the Messenger Posted by davidpringle on May 2, 2012 10:57:36 AM Are handset subsidies wrecking the mobile telecoms industry? In the battle to attract affluent customers, many European and North American mobile operators have long been lavishing hefty subsidies on the most sought-after smartphones. Some commentators believe this is highly damaging to operators' business. The case against handset subsidies is basically this: They encourage consumers to buy a $400-$500 handset every two years, rather than, say, purchasing a $200-$300 handset every three years. That means a disproportionate share of the consumer’s spending on mobile communications is being siphoned off by handset manufacturers. If consumers were spending less on handsets, they might spend more on services, enabling mobile operators to invest more in their networks and relieve congestion. In parts of Europe, the need for more investment in mobile networks is becoming painfully apparent. In central London, for example, the 3G signal on your smartphone can fade in and out even when you are sitting still, as nearby handsets compete for network resources. Moreover, call quality, particularly indoors, is sometimes poor. But handset subsidies shouldn’t be blamed for the state of the mobile networks. Handset subsidies just reflect market reality: The simple truth is that, right now, most Europeans place a higher value on the look, feel and capabilities of their handset than they do on network quality. Even if handset subsidies were made illegal, people would just take out a loan to buy whichever smartphone model they desire. They would then search for the best value mobile tariff they could find. The fundamental problem for mobile operators is that handsets are highly visible and highly tangible, whereas wireless networks are not. But over time the value pendulum will likely swing back towards the networks. Consumers and, particularly, business people will get increasingly frustrated with patchy or sluggish Internet access, particularly if they are attempting to use cloud services. They will then seek out mobile networks that can offer them better connectivity and they will be prepared to pay a premium for it. When network quality becomes a competitive differentiator again, investment will surely rise, just as it has in the U.S. market with the race to 4G. Moreover, consumers’ current fixation with having the very latest smartphones may pass as other devices get smarter and electronic screens proliferate. In time, handsets may even become anonymous black boxes that stay in people’s pockets providing connectivity and authentication for whichever device their owner happens to be using at the time, whether that be a tablet, a headset or a pair of sunglasses with built-in displays. In the meantime, don’t shoot the messenger - handset subsidies aren’t the problem. The problem is perceived value. Right now, most people will pay a premium for smartphones, but not for smart networks. For more discussion on everything mobile, be sure to visit us here: http://communities.cisco.com/community/solutions/sp/mobility