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Important information about Pricing strategies

According to Cahner's In Stat Group, the number of worldwide wireless phone subscribers will soon reach 1 billion. In the US alone, the number of subscribers is expected to rise by 17 million per year for the next 5 years. Contributing to the extensive growth are lower prices, larger geographic coverage, prepaid services, and Internet enabled phones. While the actual cost of basic wireless phone is about $75, most carriers offer their customers a free phone with a one year service agreement. Is this pricing strategy rational? Explain.

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This strategy is rational because by offering free phones, the wireless companies are able to ...

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According to Cahner's In Stat Group, the number of worldwide wireless phone subscribers will soon reach 1 billion.

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