Operators Say Handset Subsidies Will Fall

MocoNews points to a survey that says 60 percent of operators expect handset subsidies to fall or stay steady in 2006. As they point out, operators have been talking for a long time about how they'd love to eliminate them, but haven't been too successful at it, since they keep pushing new services that require new handsets. As long as operators maintain their fascination with "the next big thing" and the killer app -- that, like, say, mobile TV require new handsets, subsidies will be necessary. There is one factor that could lower subsidies slightly, however: falling handset prices. Handset manufacturers' margins and average selling prices have been slipping consistently for some time, allowing operators to decrease their subsidies slightly as well. But, as much as operators decry the financial expense of the subsidies, they love the control they let them exercise over customers.
Hide this

Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.

Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.

While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.

–The Techdirt Team


Follow Techdirt
Essential Reading
Techdirt Deals
Report this ad  |  Hide Techdirt ads
Techdirt Insider Discord

The latest chatter on the Techdirt Insider Discord channel...

Loading...
Recent Stories

This site, like most other sites on the web, uses cookies. For more information, see our privacy policy. Got it
Close

Email This

This feature is only available to registered users. Register or sign in to use it.