Pad Revenue and the Happy Pipe

So far I was wondering why network operators around the world where enthusiastic about selling pad devices from a number of manufacturers that have not even implemented their core service, i.e. circuit switched voice calling and barely do SMS while on the other hand, Skype and other over the top voice services run just fine on them!?

Perhaps their pain is sweetened by the fact that people are willing to pay 500+ euros for the device, from which they get a commission if it is bought in their shop I suppose and on top they get a monthly service revenue for data usage. A real live example: Someone I recently met is very cost conscious when it comes to voice calls. It must be a cheap device and the choice of prepaid vs. postpaid and the cost per minute are carefully thought over before the cheapest one is picked. But when it comes to the pad, the floodgate opens the 500+ euros device is bought like it is nothing and a 25 euros per month service contract is certainly no barrier either.

So strong is the attraction of over the top services that people are willing to spend 25 euros a month on network service to get them in addition, yes, in addition (!), to another device and service contract / prepaid SIM for voice. Quite a "happy pipe" situation I would say.