Eighteen years ago in June I took out my first cellphone contract. This June I cancelled the contract. When I look at how much I’ve paid over almost two decades, I can see what a brilliant business model the cellphone companies have in this country.
But for the consumer like me it’s a different story. I won’t even use the word customer because the relationship with a cellphone company is close to zero. Though you benefit from a cellphone, it’s still a grudge purchase.
The cellphone company shackles you into a two-year contract. They charge a premium price for the cellphone unit and load it with a hire purchase interest rate. This is only the beginning. You are charged for voice, SMSs and data. Continue reading “Does your revenue model have multiple sources of income like this one?”