HTC DROID ERIS: MTS offering Pulse Android smartphone for free with a one year contract

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The problem is the calling rates have gone down so drastically over here they cant afford to subsidize... In US they normally have 2-3 year contracts for iPhones & other higher end android phones... in that contract the customer ends up paying atleast $70-80 per month to the service providers... thus giving them enough room to subsidize the phones... That practice wont actually work here in India...
 
well this can actually work well in india.

i mean mts is charging 1500 per month. of course there would be users who would be able to use 1500 minutes talk time, 1500 sms, 1500MB data transfer. but a majority of them would probably fall short.

this model at least is expected to cost them pretty low. i would imagine around 5000 bucks. they can easily recover that much money.

the biggest problem would be to ensure that the customer does not disappear after a couple of months into the contract.

---------- Post added at 10:24 PM ---------- Previous post was at 10:21 PM ----------

most of the problems in india are not related to low cost of calling... it is mostly related to low ARPU.

most of us are likely to be paying less than 500 bucks per month to the service provider. i am a very good example.

i pay more for my gprs connectivity than i pay for mobile usage. 98 bucks are cut for airtel edge. but i hardly make 2-3 calls per day and these too last hardly 2-3 minutes.
 
I can get corporate connections who give the same (except data) for about 500.. and maybe another 200 for the data .... so feel I can get away with a similar setup at 700-800...
 
yeah. mts would easily recover the charges of the phone itself as long as the customer sticks to the terms and conditions of the contract.
 
Also being CDMA - They can make the phone a paperweight if the customer doesnt pay & disappears...

---------- Post added at 10:41 PM ---------- Previous post was at 10:40 PM ----------

Also I hear that using IMEI any operator is capable of making the phone one (for stolen ones mainly)... but they dont do it unless you get an FIR
 
CDMA phones usually behave a lot like GSM phones these days. but this particular model lacks a SIM card. i guess that makes it a safer bet for the company.
 
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