Wireless Telecom Inc.

Wireless Telecom: As a new company seeks to join the US mobile virtual network operator market, how should it best price its offerings to appeal to two different demographic groups?
Alessandro Citanna, Geoffrey Heal  | Summer 2010
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Wireless Telecom (WT) is planning a cellular phone service that will lease excess network capacity from existing wireless carriers. The company is part of the growing US mobile virtual network operator (MVNO) market, which sells to specific customer segments. WT has identified two potential groups: teenagers and young adults and business "power users." The company's challenge is to create monthly plans to appeal to each group, without explicitly basing prices on characteristics such as age, or tempting members of one group to choose a pricing plan geared to the other. In this case students consider historical and projected wireless subscription statistics before making a pricing recommendation for WT's proposed monthly plans.

Case ID: 080302

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