MDLx in talks with top carriers on phone leasing

Telecommunications consultancy group TMNG Global has just introduced a phone leasing option for carriers through Mobile Device Lease xChange (MDLx). This would allow carriers to avoid paying subsidies to device makers and instead lease smartphones. Consumers, in the meantime, would have the option of more frequently upgrading their phones, TMNG said.

While no carriers have yet signed up for the program, TMNG Global CEO Don Klumb said negotiations with top-tier providers are ongoing. TMNG has some related experience thanks to its SmartXchange offering and found that the fast tech advancement in smartphones gives them attractive residual values. MDLx would administer the leases as well.

Thus far, it looks like the leases would involve no-money-down, one-year leases for between $20 to $30 per month. Voice and data plans would be added to that fee, and an insurance plan would be required as well, though a carrier could waive this if a deposit is made instead.

Carriers would have the choice of devices, prices and approve qualified lessees. Two-year commitments and no fear of early termination fees are seen as the positives to those who value these. This is likely to apply only to high-end devices that often cost $600 or more without carrier subsidies (contracts).

At the end of the lease period, carriers would have the option of buying devices at market value and resell them to customers or MDLx could find a place to sell them through secondary channels.

By Electronista Staff