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Friday, December 05, 2008

Downturn driving an increase in mobile payment defaulters

One of the issues I've raised in the past is the risk of payment defaults on contract mobile bills, especially where device subsidies are considered.

This article, from the UK's mobile trade newsletter, seems to point to the threat becoming real.

It's not immediately obvious whether it's the retailer or the operator that wears this risk in this scenario, and I'd guess it'll vary depending on whether it's an independent retailer or the MNO's branded outlets. There's also all sorts of complexities around commissions and other payments, but the net effect on the overall mobile value chain is similar, if ultimately retailers go bust.

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