(keitai-l) Re: Subsidising handsets

From: Petri Ojala <ojala_at_iki.fi>
Date: 07/31/01
Message-ID: <B78C58C7.208E%ojala@iki.fi>
> One2One has 9.4m customers. Deutsche Telekom doesn't break out the ARPUs
> anymore, but Vodafone UK reported £25/month, and One2One will be below that.
> Our guess is about £15.

From 2Q01 Sonera results, an average Sonera GSM user has:

    Voice calls 150 minutes/month (2Q00: 141)
    ARPU 42,0 eur/month (2Q00: 42,1)
    25 SMS messages/month (2Q00: 24)

72% (2Q00: 68%) of the customers use SMS, 33% (2Q00: 33%) of customers use
SMS or WAP value added services.

Sonera does not subsidize the handsets but they do give the resellers and
mobile shops incentives for new subscriptions.  The incentives are typically
not paid until the customer have had the subscription for 3-6 months and the
shop may use part of the incentive to lower the margins on the mobile phone
prices.  They also offer frequently free air-time (e.g. 200 hours) to new
subscribers.

Sonera has >60% market share so they haven't changed their pricing much
recently.  However the market has become more competitive due a new GSM
operator and a few new service operators using existing GSM networks.  The
new players have been pushing very aggressive pricing but the market share
is still quite modest.

Petri


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Received on Tue Jul 31 12:34:19 2001