Digital Engagement: How can a mobile phone subscription help in this process?

Brazil is considered one of the most unequal countries in the world, according to 2021 data from the World Inequality Lab. The research highlights alarming data about the economic gap between classes in Brazil: The richest 10% in Brazil earn almost 59% of the total national income. The concentration of capital is even greater among the ultra-rich; The richest 1 percent of the population owns 48.9 percent of the country’s wealth.

This level of inequality spills over into other areas of society, from access to basic rights such as health, basic sanitation and quality education. In this sense, the country faces an equally important scenario in creating opportunities: the digital inclusion gap.

Given an increasingly connected world where digital transformation is in full swing, internet connectivity has become a tool for accessing education, job opportunities and even financial services. The problem is that almost 34 million Brazilians have no access to the internet — This is what the survey conducted by Instituto Locomotiva and the consulting firm PwC shows.

According to the research, mobile phones are the most common device to access the Internet among Brazilians and are used for this purpose by 99% of the population. Data also shows that more than half (58%) of users in Brazil have a device as their only means of connection.

However, with the chip crisis in the technology market and smartphones becoming increasingly expensive, there are very few options left for those who want to buy a model. Mobile phone subscription services are a growing market and gaining ground as an alternative to purchasing more expensive models.

In this article, TecMundo It will help you understand how this service can help, its advantages, disadvantages and much more. Check out!

How does a mobile phone subscription work?

The service known as a mobile phone subscription actually works like a rental. Customers can choose new or used devices from major brands such as Apple and Samsung to use for 12 months. During this period, a lower monthly payment is made than the new device installment; This amount may vary depending on the model and brand selected.

After the 12-month period, subscribers can choose from several options, including:

• Renew the subscription and continue with the same device;
• Replace with a newer model;
• Purchase the device for an extra fee;
• Return the device free of charge.

How much does a monthly mobile phone subscription cost?

TecMundo evaluated the services of two subscription companies: Allugator and Leapfone. The device chosen for comparison was the 128 GB iPhone 13. In the official Apple store, the device can be purchased in 12 installments for R$ 5,499.00 or in cash for R$ 4,949.10. Check out the results comparison:

• Crocodile: R$ 2,379.00 in cash or 12 interest-free installments;
• Telephone: R$ 3,108.00 on the card in 12 interest-free installments, or a monthly fee of R$ 279.00 — a total of R$ 3,348.00 in 12 months.

Leapfone’s monthly fee includes insurance against theft and damage, and the device comes with a case, film, full charger, and special goodies. The customer can purchase the device for only R$ 1.00 after paying 30 installments.

The Allugator subscription includes insurance against theft or aggravated theft, but does not cover damages. Additionally, by working with a circular economy, The company does not allow users to purchase the device after 12 months. They can choose to renew the lease, change the model, or return the device.

Both companies work with well-maintained, used devices, not new models.

Advantages and disadvantages of renting a smartphone

The main advantage of a mobile phone subscription is access to high-end devices at a below-market price. Considering the annual value, subscribing to the iPhone 13 from any company is cheaper than buying directly from the store.

However, this model works best for those who want to upgrade their devices every year. Considering that the subscriber will not own the device at the end of the 12-month period, purchasing in installments may be more beneficial for those who are not interested in constantly updating their device.

Who is the subscription model suitable for?

The services available in the market are indicated for: Professionals and companies who need high-end devices with more powerful cameras, storage and processing – such as content creators and companies working with audiovisual production. Current subscription models have little appeal for input devices.

How renting a smartphone can help digital accessibility

Although currently existing mobile phone subscriptions do not play a more active role in digital accessibility, their concepts and business models Make it easier to access quality devices and internet connectivity.

In addition to playing an important role in the circular economy and sustainability of the planet, such services can impact many industry sectors by facilitating access to high-performance devices.

Finally, it is important to understand that the process of digital acceleration will continue to advance and smartphones have become one of the main means of benefiting from the population’s access to the Internet.

In this way, this model enables joint action between governments, companies and educational institutions to create a strong ecosystem that can sustain the full potential of the still unconnected Brazilian population of 34 million.