Mobile Handset Acquisition Models

This report examines the relationship between the prices for mobile communication services and some of the most popular handsets used to access these services, focusing on smartphones. The objective is to better understand different business models and how they may affect comparisons of prices. It looks at the question of how the different models for handset acquisition in different countries, and across different operators in these countries, may affect comparisons of service prices. As benchmarking of mobile communication prices provides an important indicator that is used to inform policy makers, regulators, industry and consumers, this paper examines the challenges for such price comparisons associated with handset discounts bundled with mobile communication plans.