Sunday, November 6, 2011

Cell Phones cause change

The use of cell phones in the recent years has been rapidly increasing. The big companies like AT&T and Verizon have had to make many different decisions on rates and plans to accommodate this change. The use of land lines and long distance calls is what first dropped in these companies so many thought they would enter a recession, but what countered this was the use of the wireless cell phone. The said in the article that it was a once elastic market, but now since the change really increased (now increases at same rate) that it could be considered inelastic for people. The amount of wireless calls jumped from 3 billion hours in 2000 to 36 billion hours in 2008. The past year the amount of calls has dropped throughout carriers, this raises a question will the companies rises their prices for phones and service, or can they compensate for them by their data prices. In the next couple of years we will see what their decisions seem to be.

1 comment:

Daniel said...

Very interesting topic. The changes in pricing provided by each cell company is greatly influenced by costumers. AT&T once had an unlimited data planned but dropped it after complaints about the price and switched to limited data plans in order to lower prices. Companies if anything, might lower prices in order to get attention and to increase their sales. (Note: You have many spelling errors throughout your post.)