The idea
A weaker currency raises the local cost of dollar-priced equipment, software and imported handsets, subject to contracts, timing and hedging. Fuel costs may also change, squeezing both network economics and household budgets. Handsets and mobile data can be complements, so changes in device affordability can affect data growth. Model currency, financing and customer affordability separately.
Use it thoughtfully
- Re-price dollar-linked costs after big currency moves.
- Time handset campaigns away from price rises.
- Consider financing or refurbished phones when handsets get dearer.
An example
ILLUSTRATIVE EXAMPLE: After the currency falls, a team delays its handset bundle campaign by one quarter and offers instalment plans on older 4G models.
A question to try
Which of your costs move with the exchange rate, and how quickly do you re-price them?
A useful framework is a starting point, not a guarantee. Effects vary with the audience, product and situation. Use truthful evidence, respect customer choice, and test the result.