Blue Horizon Inc.is an Internet service provider.It provides a router free of charge when users sign up for a two-year wireless service plan.In this plan, users pay in advance irrespective of whether they use the Internet package during the two-year period or not.Which of the following business models does this scenario best illustrate?

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In this scenario, Blue Horizon Inc. uses a combination of the razor-razor-blade model and the subscription-based business model. Telecommunications companies combine the razor-razor-blade model with the subscription-based business model. They provide a basic cell phone at no charge or significantly subsidize high-end smartphones when you sign up for a two-year wireless service plan. Telecom providers recoup the subsidy provided for the smartphone by requiring customers to sign up for lengthy service plans.