An Early Look at Netbook Subsidization by Mobile Operators

Author:Philip Solis | Principal Analyst, Mobile Broadband

2008-10-10

One of the burning questions in the UMD market is whether or not mobile operators will subsidize UMDs. While subsidies could differ based on the UMD type (netbook or MID,) they could also turn out to be very similar. UMDs will be sold through a variety of channels, of which a very important one is the mobile operator channel. Netbooks will be much more affordable than laptops (although not as powerful), and when netbooks are subsidized, the result is a very low price that will drive consumer adoption. In return for the subsidization, consumers will sign up for mobile broadband contracts. This ABI Insight will look at a few specific examples of netbook subsidization by mobile operators and put it into context of the long term UMD subsidization goals of mobile operators.

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