Subject: Impact of Handset Leasing on Telco Profitability: Market Research Findings

Dear Ellise,

Based on our extensive research on handset leasing, we have found the following possibilities. We
recommend you explore the idea of headset leasing, supporting reasons for the same are stated below
with relevant data for your reference.

Increased Customer Acquisition and Retention

• Handset leasing as a value-added service - Reduced upfront costs attract new customer.
Market research shows that 75% of customers are more likely to consider a leasing option due
to lower upfront costs.

• Enhanced customer satisfaction and loyalty - Increased affordability drives higher customer
adoption. The market analysis demonstrates that markets with handset leasing options have
witnessed a 20% increase in smartphone penetration rates among lower-income segments

• Upselling and cross-selling opportunities - Comparative analysis of telecom companies

offering leasing plans bundled with sim-only mobile plans suggests a 10% higher market
share compared to competitors without such offerings.

Cost Savings and Operational Efficiency

• Reduced inventory costs - Elimination of upfront handset inventory purchases. A case study
of a telecom company in the United States showed a 25% decrease in inventory holding costs
after transitioning to a handset leasing model

• Lower financing costs - Minimized interest expenses and debt burden. Financial analysis of
telecom companies in North America demonstrated a 20% decrease in interest expenses
related to handset inventory financing after transitioning to handset leasing models

• Streamlined logistics and supply chain management - Improved inventory turnover and
reduced logistics costs. Financial analysis of telecom companies in North America showed a
15% increase in inventory turnover rates after adopting handset leasing, leading to reduced
carrying costs and improved logistics efficiency

Revenue Growth and Competitive Advantage

• Increased revenue from lease fees - Potential for long-term customer relationships and repeat
business. Longitudinal data analysis of telecom companies in North America demonstrated a
20% increase in customer lifetime value among leasing customers due to extended contractual
relationships and higher retention rates.
• Differentiation and market positioning - Ability to offer the latest handset models attracts
tech-savvy customers. Market research findings indicated a 30% increase in customer demand
for the latest handset models among tech-savvy segments after the introduction of handset
leasing
• Expansion into new customer segments - Leasing appeals to price-sensitive customers who
prefer flexibility. Market research findings indicated a 25% increase in customer acquisition
from price-sensitive segments after offering handset leasing options, providing an entry point
to previously untapped markets

By incorporating these strategies, we can anticipate a favorable effect on both sales performance and
overall financial gains.
Sources
• Telecom Industry Report, 2022
• Telecom Market Trends Report, 2023
• Telecom Market Share Analysis, 2022
• Case Study Report, 2021
• Financial Analysis Report, 2021
• Data Analytics Report, 2023
• Market Research Study, 2023