Changes to device technology continues to pick up pace and intensify. Traditional business and operating models for telco providers, retailers and device manufacturers are fast changing too. There is now more scope to explore different financing arrangements. As economic challenges and volatility continue across the globe, securing new sources of capital and growth are top priorities facing executives of leading telco providers and retailers. Consumers are demanding greater affordability and more freedom to upgrade to new device experiences. This environment offers the ideal time to explore alternative operating models.
A subscription model offers an alternative to outright ownership of a mobile device.
Under varying structures, the subscription model is already popular across Asia and the United States. Consumers and providers are enjoying the benefits of lower capital outlays and improved monthly savings. For telco providers and retailers using the model, they have access to freed up capital allowing them to invest more in their network and core business.
Building a bespoke financial structure with a financier enables participants to truly benefit from a subscription model. With a slowing global economy, intense competition and disruption the new norm, it’s time to evaluate the benefits of different operating models.