nov 2nd, 2009
just in case you are wondering whether to take the plunge for a new smartphone.
the darn things are bloody expensive! no wonder the american carriers subsidize them so that you don't realize how much you are paying for the service.
better option may be the way it works in india: no subsidy for device, but you pay lower monthly fees for the service.
i am getting pretty impressed by the business models of indian mobile companies -- the 'atlanticist' had a story that suggested these guys end up with 40% gross margin despite pathetic Average Revenue Per User, by using outsourcling judiciously. they don't own networks, they don't own the switches, they don't own the towers -- they simply contract out to the owners to carry the call volume they need. the owners of network/switch/towers etc then enjoy economies of scale.
no wonder bharti et al are on the point of going out there are acquiring MTN etc. the day may not be far off when a bharti buys a vodafone or an AT&T. the bottom of the pyramid bites back!
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