July 8, 2012
Vijaya Prasad

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When Verizon Met A T and T


The two largest mobile service providers, AT&T Wireless and Verizon Wireless, are engaging in some serious price signaling. And you don’t have to take my word for it, because the two leaders are not only signaling, they are explicitly saying that they’re signaling.

“The carriers are probably concerned and hoping that if they raise prices the other guy will, too,” Denny Strigl, retired president of Verizon

“Is it going to cost them more money? Yeah,” Lowell McAdam, CEO of Verizon Wireless

“Verizon’s pricing that they announced this morning is exactly what we have been kind of signaling in the marketplace for the last couple of weeks,” Randall Stephenson, CEO of AT&T Wireless

And guess what, this is all perfectly legal. As a marketing guy, I am in awe of this stroke of genius.

Price signaling has always existed between the number one and number two players in any market…

View original post 600 more words

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