FICO® Score for Asset-Backed Securitization in Telecommunications

Support Document
Radial circle

Executive Brief

It is a common practice among telecommunications companies to finance a subscriber’s purchase of a mobile handset over a period of 18 to 24 months. In financial terms, the transaction is essentially a loan. The carrier gets a revenue stream from repayment for the handset, plus monthly payments for usage. Now, however, carriers are looking to raise capital by securitizing those loans against the handsets to free up capital to better compete in today’s highly competitive market. Asset-backed securitization (ABS) is new to telecommunications, but it is an extremely common practice with mortgages, auto loans and bankcards. What investors in asset-backed securities require is a clear picture of the credit quality of the loans underlying the security, and for decades the trusted standard for risk assessment has been and continues to be the FICO® Score.
Download your free Executive Brief
Subject to the Privacy Notice I consent to FICO using my contact data provided above to contact me by phone or email to provide information regarding FICO, its products and services, and other similar FICO products and services.
I agree to the Terms and Privacy Notice.

Take the next step

Connect with FICO for answers to all your product and solution questions. We look forward to hearing from you.