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When is a free laptop not actually free? When it comes with a dongle!

Posted in Mobile Data, 3G, Broadband, Laptops, Mobile Phones on July 17, 2008 at 12:57 pm

The UK mobile phone-buying public have become used to getting their handsets for ‘free’ or at least heavily discounted over the SIM-free ticket price.

Of course, there is no such thing as free, but rather just deferred cost or hire purchase without the financial regulation. That Nokia N95 doesn’t really cost £29, but rather the £300 that has been subsidised off the top line will be recouped from you (plus a healthy profit) over the life of your 18 months £50-a-month airtime contract.

However, a USB 3G dongle is not an expensive bit of kit. The pay-as-you-go (PAYG) price on most networks is £49.99 inc VAT, and that price includes a profit margin. More money will be made from PAYG mobile data use, but as this revenue will be unpredictable - there is no safety net of a contract and guaranteed minimum recurring payments – the network needs to ensure it is not left out of pocket by selling you a discounted dongle that is subsequently lost, left in a drawer never to be used, or unlocked and used on another network.

Dongle contracts are a different matter. For example, I signed up last year to a two-year contract at £15 a month for my 3G USB dongle and service from 3. In return for signing my life away, I got the dongle for free. Given the cost of the dongle if bought outright, that isn’t much of a subsidy, even on a £15 data plan. If I’d gone for the higher £25 plan (or if I signed up now to 3’s new £30 plan) that’s even less of a subsidy and an even bigger profit margin for the network. However, I’m not bitter; this is the price you pay for being an early adopter. I’m also very impressed with the quality of the data service from 3. That said, I would much rather have the new Huawei E169G USB stick instead of the E220 ‘lozenge’ dongle (pictured) I have now.

Given that all the networks are now offering 3G dongles (O2 has finally joined the party), how do you differentiate your product from the competition? Read more

Rated: 100% (1 votes)

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Now the dust has settled….A considered look at Apple’s announcements

By Chris Green in Editorial

Posted in Mobile Phones, Laptops, Smartphones, Mac OS, iPhone, Apple on January 17, 2008 at 3:11 pm

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There are a few things to take away from Tuesday’s keynote address at Macworld, but before we get stuck into the merits and issues of things like the MacBook Air, Time Capsule and Apple’s u-turn on content rental, let’s talk about the live blogging event. Read more

Rated: 100% (3 votes)

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Predictions for 2008

By Chris Green in Editorial

Posted in 2G, 3G, Mergers and Acquisitions, Mobile Data, TV and Movies, Motorola, Broadband, Email, Smartphones, Mobile Phones, Laptops, VoIP, Apple on January 1, 2008 at 11:22 pm

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One thing is certain this year; the technology sector is going to be busy.

2008 is going to be a landmark year, with several technology shifts on the horizon and companies set for fierce competition as the tough trading conditions in countries such as the US create problems for the more blinkered hardware, software and services companies that have failed to look behind their home market. Those that see the bigger global picture will be stepping up their efforts to grab market share or establish a foothold in emerging markets such as China, Eastern Europe and parts of Africa.

Here is my list of ten technology predictions for 2008 – I am confident about these, but just to be on the safe side I won’t be backing them up with cash bets this year. Read more

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When is a free laptop not actually free? When it comes with a dongle!

Now the dust has settled….A considered look at Apple’s announcements

Predictions for 2008

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