First, let’s analyze the services. A family has been paying $50
a month for their high-speed Internet. The annual price increase is set at
5%. Over five years (60 months)
the family will pay $3,316 resulting in a monthly cost of
$60.78 Using HomePort financing, the family’s monthly payment
would be $18.83, with an after tax cost of $13.93.
This results in a monthly Cash-Flow Increase of $46.85.
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Now, continue the analysis for each of the other services. When all the
services are totaled, the family has reduced their monthly service costs from
$364.68 to $83.57 and realized a monthly savings of
$281.11. Over the five year term, the family saves $14,487
(see on the next chart)!
Upgrading Telecom Services -
Now, take a look at the effect the financing has on reducing the cost to
upgrade from a basic telecom service to an all inclusive, all you can use
telecom service. For this example, the retail price for the Basic Service is
$50. The price for the All Inclusive Service is $99. The cost to upgrade is
$49! For many people, this may be a barrier to purchase!
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With HomePort, the after-tax cost for the All Inclusive Service is $24.96,
half the cost of the Basic Service the family is already paying! Another way of
looking at this example is the cost to upgrade from the Basic Service to the
All Inclusive Service is only an additional $12.36 per month! For most people,
the choice is a “no-brainer”! And most people take advantage of the HomePort
financing to purchase the “Top of the Line” telecom services!
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