Tele'Wire, a mobile manufacturer, offers free connections to customers who buy its mobile phones. This cost of connection is actually included in the price of the mobile phone. Tele'Wire is pursuing a(n) approach to applying freeconomics.

cross subsidies

Explanation: Cross subsidization is a market practice in which a certain product is used to propel the sale of another product is either making which less profit or sale or to boost the sale of a certain good or service. It involves combining two or more products or goods being sold as one with all prices of the combined product summed up.

In the scenario above, connection seems to be given away for free, this is done in other to generate an income stream elsewhere, that is in the sale of mobile phone, with both prices summed up in a tempting unique package.

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