Ukrainian mobile operator Giraffe is offering USB modems on an installment basis. The initial payment for the device is UAH 199 (US $24.00), followed by six monthly payments of UAH 50 (US $6.00) each when signing a six month contract. The promotion runs until June 30.
Giraffe’s plan is a good one. The operator wants to encourage people to subscribe to their data plans, and the price and payment terms for the modem should prove useful for this purpose. However, we would have advised taking a slightly different approach. Specifically, in our view, such installment plans provide the opportunity to lock in subscribers for considerably longer than six months. In fact, we believe 24 months is achievable. Moreover, by spreading out the payments the operator is making the cost of the modem less noticeable to the subscriber, resulting we believe in more subscribers signing up and for longer periods of time.