New SIM & handset leasing plan is economically more attractive for

customers, compared to traditional plan

Plan comparison (US$) Existing 24 months plan SIM & Phone leasing plan Saving
Monthly lease instalment 0 99
Upfront cost 100 0
Monthly phone plan 95 25
Data 6GB 6GB
Talktime Unlimited 150
SMS Unlimited 500
Insurance NA Basic cover
Trade in / return device Optional Mandatory
Option to keep phone Yes No
Economic comparison* (US$) Existing 24 months plan SIM+Leasing plan For customers, total 24
24-months total cost with out trade-in/upgrade 3,678 2,976 19% months cost of new SIM &
Cumulative cost if upgrade Phone leasing plan is 19-
After 1 year 2,738** 2,786 35% 34% lower compared to
After 2 year 4,028** 4,274 21% traditional plan
After 3 year 5,318** 5,762 14%

Note: *Cost for customers; include cost of phone (1,298 US$ up-front) for existing 24 months plan
** Assuming cost of new phone for upgrade = 500 US$ because 46% of customer base would not pay more than $500 upfront for a new phone
Cost if upgrade is calculated using following formula: Total lease instalment + Total phone plan cost + Upfront cost – Trade-in price (if applicable) + Upgrade price (if applicable)
Suggested target consumer that matches with SIM & Phone leasing
plan: Under 30 years old, change phone every 12-24 months

Target profile Key rationale Product launching recommendation

• Highest share of demographic market share: • Plan name: “Upgrade more, save more”
• 63% of those below the age of 30 were keen to lease a • Marketing focus on:
handset, as compared to 28% of those above 30yrs. • The more frequent the upgrade, the
old higher rate of saving
• 74% upgrade their handset every 12-24 months • Low up-front cost (0$ as compared to
1,396$* of traditional plan)
• SIM & Phone leasing plan creates the highest cost saving • Insurance covered
benefit for targeted customers

• Under 30 years old • Other: Leasing plan solves customer’s upfront cost
• Upgrade phone frequently every barrier:
12-24 months • 60% of customers said the upfront cost was the most
• Tends to be technology important factor when deciding what phone to buy and
enthusiasts, care about latest 46% of customers would not pay more than $500
smartphone trends upfront for a new phone

Note: *include 1,296$ phone cost and 100$ up-front cost