Using the 5 step model of revenue recognition explain when revenue should be recognized for the following situation. Make sure you apply all steps and individual criteria within each step.

5G Telecom is a new company offering 5G data connection. They are the first in Canada and are a publicly traded company on the TSX-V. To attract new customers they are offering a one time bundled 2 year contract for all new subscribers. The following is what they are offering for low price of $100 per month for 2 years.

1. Unlimited data, call and text any where in Canada
2. A new Iphone or Samsung phone
3. A phone protection warranty

5G Telecom will also be offering the above items separately should customers choose not to commit to the plan. The standalone price for each of the above items are as follows:

1. Unlimited data, call and text any where in Canada ($70 per month)
2. A new Iphone or Samsung phone ($1000)
3. A phone protection warranty ($10 /month)