Describe the utility of wireless services to its consumers, and discuss the substitute and complementary services and their impact on the pricing decision

Essay by yourikUniversity, Master'sA+, April 2004

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Table of Contents

Executive Summary2

Product Pricing3

Cost4

Market Structure5

Economy Forecast9

GDP10

Employment11

Capital Investment13

Consumer Price Index (CPI)14

Conclusion15

Wireless Services

Executive Summary

According 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 Pricing

Wireless 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...