By AS WAKAMA
Device financing has been a catalyst in increasing the penetration of smartphones across developed countries. Several telecom carriers have taken the plunge into device financing in recent times, also bringing into focus the previously underserved markets of smartphone financing- in the African, LATAM and APAC regions.
Traditionally, the smartphone financing model, especially the one that comes pre-bundled with a telecom service is a win-win for both the consumer as well as the telecom companies. With device financing, individual consumers as well as businesses can leverage the latest technology at their disposal, have an easy upgrade, pay lower total upfront costs and get a telecom service, with voice and data packages. For telecom carriers, smartphone financing enables tapping into a larger market space and providing a service add-on, helping to attract more and more individual consumers as well as large corporations.
Challenges of telecom companies in smartphone financing
When the smartphone financing model emerged, the telecom industry had a lucrative piece to be interested in. But as the smartphone market progressed, the challenges of the telecom industry have risen. Especially since the base prices of the modern handsets have skyrocketed, the profit margins of telecom carriers from device financing are Click here to read entire article
Source:: IT News Africa