Describe The Utility Of Wireless Services To Its Consumers, And Discuss The Substitute And Complementary Services And Their Impact On The Pricing Decision

2339 words - 9 pages

Table of ContentsExecutive Summary2Product Pricing3Cost4Market Structure5Economy Forecast9GDP10Employment11Capital Investment13Consumer Price Index (CPI)14Conclusion15Wireless ServicesExecutive SummaryAccording to Canadian government the Telecommunications Industry is differentiated into five constituent industries: Wired, Wireless, Reseller, Satellite, and Other. Furthermore, the wireless telecommunications industry comprises are engaged in operating and maintaining switching and transmission facilities to provide direct communications via the airwaves, including cellular, Personal Communications Services (PCS), Enhanced Specialized Mobile Radio (ESMR), and messaging (paging).The need for cellular phones has been on the rise for the past few years. The need for mobility has created a huge demand for wireless services and with recent technological advances such services have become very affordable.Throughout this paper we will describe the utility of wireless services to its consumers, and discuss the substitute and complementary services and their impact on the pricing decision. Furthermore, we will Identify and discuss issues that affect cost and the effect of technology on productivity and average total cost. Then we will determine the market structure for wireless services. We will also discuss the impact of the market structure on pricing and suggest non-price strategies as well as other sorts of strategies to help remain the firms in their optimal competitive position. At last we identify economic indicators such as gross domestic product (GDP), employment and salaries, capital investment and consumer price index (CPI). We also discuss the implication of these indicators in various aspects of economy.Product PricingWireless technology has become an important part of many societies today. There are millions of people around the world who are using wireless technologies such as cellular phones to efficiently conduct their day-to-day operations. Furthermore, wireless technology has greatly improved our ability to work and communicate at home or at work in our local and global communities.Throughout this paper we will examine the utility of wireless service providers to their immediate customers, its economic effects on supply and demand, and eventually its effect on the price of wireless services.Wireless service providers have focused more of their attention on providing services for cellular phone users. The target market is individuals from age seventeen and above. With such a broad target market, one expects the demand to be very high. In addition to such a high demand, wireless service providers have been able to reduce their cost due to a decrease in its complement products namely cellular phones. As the cost of manufacturing cellular phones decreases the wireless providers are able to offer deals on their packages such as including the cellular phones for no additional cost to consumers.The need to be connected has been driving the...

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