Question about pricing strategies

Reference no: EM1375609

According to Cahner's In Stat Group, number of worldwide wireless phone users will soon reach one billion. In the United States alone, the number of users is expected to increase by 17 million per year for the next five 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? Describe.

Reference no: EM1375609

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