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How is that a problem?

Because they were sold as loss leaders on the assumption that people would be paying for time/data on the network.

I don’t think this phone is being sold as a loss leader, though.

I wouldn't be so sure, though it seems more like a Amazon-type play than an ISP pushing plans:

"Customers can get a WizPhone WP006 from vending machines at more than 10,000 Alfamart stores for just USD$7 (IDR99,000)1. Then, with the built-in AllWizapp, customers can unlock shopping benefits in Alfamart by scanning barcodes on each product and making their purchase directly via the app on their WizPhone."

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