In October 2006 we wrote in our research brief ‘Dutch consumer still gets his mobile handset for free’ that in response to the decision from KPN and T-Mobile to cut the subsidy on handsets, consumers only had to pay only a marginal increase in subscription fees for subscriptions with a free handset. In this research brief we take a look at the developments in the last two quarters. The average monthly subscription fee increased marginally in the second half of 2006, but went down after November 2006. The decline in the first period (see below) was a catalyst for cuts in handset subsidies, forcing the average subscription fee up in the second period. From November 2006 we have seen a drop in the subscription fees; however, this drop is not an indication that the mobile industry is losing faith in the new strategy.
