MTS to launch reverse subsidy for Samsung smartphones buyers
12.08.2015 518 views
The operator plans to return up to 25% of the smartphone cost to the customers’ accounts within five months. The campaign covers 50 models of the Korean manufacturer, with the so-called reverse subsidy scheme to be probably applied to other manufacturers in the future.
Mass media inform that such scheme of sales suggests that Samsung and MTS should share the costs of telecommunication services provided to subscribers. The company decided to introduce the reverse subsidy program as to support their revenue growth, increase the number of smartphones in the subscriber base and the average monthly bill per user.
According to the company spokespersons, MTS intends to increase ARPU in Russia by 2.5-3 times over the next five years. The data-service operator’s revenues grew by 27.2% to 17.6 billion rubles in the first half of 2015.
On the other hand, the delay in the project start is apparently caused by the fact that large retailers such as Svyaznoy and Euroset, as well as VimpelCom and Megaphone networks refused to buy Samsung smartphones, referring to a high percentage of defective units as an explanation.
Finally, MTS remains the only mobile retailer selling Samsung mobile devices. According to 2Q 2015 results, the share of the vendor in the MTS retailer’s sales amounted to 29% (in pcs).