Linked by Thom Holwerda on Fri 17th Aug 2012 22:48 UTC
PDAs, Cellphones, Wireless I always see The Netherlands - my home country - as a small, easily graspable version of other, larger and more important western countries and even the west as a whole. In light of this, Tweakers.net's Arnoud Wokke points to a very interesting report about the Dutch telecommunications market. This reports notes a trend that, if present in the rest of the world, could have serious effects for phone makers.
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It'll be interesting to see
by coreyography on Sun 19th Aug 2012 23:44 UTC
coreyography
Member since:
2009-03-06

Here in the US, it seems that carriers are increasingly chafing at the cost (to them) of phone subsidies. New-contract phone prices have slowly risen, touching the $350 US barrier. New fees have been added; Verizon now charges a $30 "upgrade fee", which erased completely the incentive they offered me to renew my contract recently (I actually renewed to keep my unlimited data _and_ get a subsidized phone). And the period one must wait before being eligible to get a new subsidized phone has increased.

On the other hand, with no technological incentive to upgrade phones and renew contracts, as there was with the advent of LTE, maybe they'll have to keep subsidies around in some form to reduce churn.

It's interesting to hear that Dutch carriers subsidize phones, as I had understood that most of Europe's carriers did not. Even here in the US, one can generally get a new subsidized phone every 1.5-2 years, so I'm not sure how much an impact the subsidies have on frequent upgraders.

Besides that, the phone makers are already hurting, at least if they are not Apple or Samsung. Motorola is laying people off. HTC has had two consecutive quarterly losses (see what happens when you don't release kernel source? ;) Nokia is all but dead. It may be a moot point in the end.

Reply Score: 1

RE: It'll be interesting to see
by tanzam75 on Tue 21st Aug 2012 14:10 in reply to "It'll be interesting to see"
tanzam75 Member since:
2011-05-19

Besides that, the phone makers are already hurting, at least if they are not Apple or Samsung. Motorola is laying people off. HTC has had two consecutive quarterly losses (see what happens when you don't release kernel source? ;) Nokia is all but dead. It may be a moot point in the end.


And the mobile carriers are paying attention. There are lots of reasons why they're rethinking their reliance on subsidies, but wanting to have a choice of suppliers certainly plays into it.

They don't want to find themselves in a duopoly world, with a choice between Apple and Samsung, and nobody else.

Reply Parent Score: 2

RE: It'll be interesting to see
by zima on Fri 24th Aug 2012 22:35 in reply to "It'll be interesting to see"
zima Member since:
2005-07-06

It's interesting to hear that Dutch carriers subsidize phones, as I had understood that most of Europe's carriers did not.

Many (most?) European (!=EU) carriers did; but there's a shift away.

Anyway, worldwide, strong majority of the 5+ billion mobile subscribers does own their phones, and uses prepaid.

Reply Parent Score: 2