Fair point about GSMA's call for a $30 phone, only way phone makers can subsidize the loss selling that cheap is earning that back from the data or services, which is not easy in very low income countries. It makes a lot more sense to leverage the used phone market to supply that demand.
Regarding uMobile swap program, a lot of the success will hinge on their retail executuion, user awareness for such programs is still low in Malaysia so its not likely a customer will just click to add this online or request for it at the store. It requires floor sales staff to explain the features and answer questions on the conditions of the program (what are the conditions they can or cannot swap for, are they getting a new phone or used phone when swapping, etc.). Usually this also requires floor sales staff to be incentivized or given some form of commission as it is extra work to explain all these to a customer.
Thanks for the comment Sheng. Agree on your retail execution point. It's a hard balance to strike. New products, especially those with complicated terms and conditions, need support but floor commissions can incentivise the wrong behaviours. However, a face to face explanation of the product benefits usually has positive impact on attachment rates. Without that, the benchmark, for insurance at least, has settled around 10% against device sales in the UK.
Fair point about GSMA's call for a $30 phone, only way phone makers can subsidize the loss selling that cheap is earning that back from the data or services, which is not easy in very low income countries. It makes a lot more sense to leverage the used phone market to supply that demand.
Regarding uMobile swap program, a lot of the success will hinge on their retail executuion, user awareness for such programs is still low in Malaysia so its not likely a customer will just click to add this online or request for it at the store. It requires floor sales staff to explain the features and answer questions on the conditions of the program (what are the conditions they can or cannot swap for, are they getting a new phone or used phone when swapping, etc.). Usually this also requires floor sales staff to be incentivized or given some form of commission as it is extra work to explain all these to a customer.
Thanks for the comment Sheng. Agree on your retail execution point. It's a hard balance to strike. New products, especially those with complicated terms and conditions, need support but floor commissions can incentivise the wrong behaviours. However, a face to face explanation of the product benefits usually has positive impact on attachment rates. Without that, the benchmark, for insurance at least, has settled around 10% against device sales in the UK.