Posted by & filed under Part 4: Marketing Management.

Description: The two largest U.S. wireless carriers, Verizon and AT&T, cut their rates on Friday, escalating a price war that began with smaller carriers.

Source: Reuters.com

Date: 01/15/2010

Link: http://www.reuters.com/article/idUSN1514325020100115

Questions for discussion: 

  • Do you think these price cuts will bring in more total revenue for these firms? Explain your thinking.
  • What do you think is motivating these firms to offer a flat-fee for wireless services?
  • Is it a good choice, or should they be offering stepped prices for low to high volume users? Explain your thinking.

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