A complimentary mobile device, offered potentially as part of a promotional bundle or service agreement from a telecommunications provider, allows customers to acquire hardware without immediate upfront cost. For instance, a new customer subscribing to a specific data plan might receive a handset without initial payment as an incentive.
Such offers can significantly reduce the barrier to entry for new customers, providing access to communication technology that might otherwise be unaffordable. Historically, these types of incentives have been used to stimulate market growth and encourage customer loyalty by tying device ownership to continued service usage. This can create a mutually beneficial relationship between the provider and the subscriber.