Packaging subsidised handsets could be mobile operators ticket to profitability
College students around the world know the meaning of the acronym ‘BYOB’. Often accompanying party invitations, it tells the person being invited to ‘Bring Your Own Booze’.
Indian mobile operators have been practicing a variant with their customers, BYOH, or ‘Bring Your Own Handset’. Indian operators have mostly remained wary of subsidising and bundling handsets since the spectacular failure (following what appeared to be a spectacular success)
of Reliance Infocom’s 2003 ‘Monsoon Hungama’ offer.
During this offer, Reliance Infocom rapidly added millions of new subscribers on the back of dramatically discounted handsets. Hundreds of thousands around the country got themselves new mobile handsets nearly free of cost though they had no intention of ever paying a bill.
(This story appears in the 01 July, 2011 issue of Forbes India. To visit our Archives, click here.)