
Telefonica revamps handset subsidy system in Spain

Telefonica has revamped its handset subsidy system. Starting 1 March, the operator will no longer offer handsets free of charge, but will subsidize the purchase of new smartphones, without charging interest. Telefonica will also buy back used smartphones, Cinco Dias reports. Customers will be able to acquire new smartphones in up to 18 monthly installments. Prices start at EUR 10 per month. The new system is based on an agreement with financial services provider Finconsum, owned by La Caixa. Customers who hand in their used smartphones will receive a discount of up to EUR 245 on the purchase of a new smartphone. Customers who hand in a Blackberry or Sony Ericsson smartphone will receive an additional discount of EUR 30. These second-hand mobile phones will be repaired, if necessary, and sold by Telefonica at lower prices to customers in Spain, Asia, Latin America or Africa.
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