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Verizon Marketing Strategy

958 Words4 Pages

Competitive Strategies and Government Policies
Telecommunications have been around for quite some time now. With the advancement of technology, telecommunication became mobile. Communication was available beyond a home’s landline. After rules and regulations made by the government, the telecommunications market became a perfect competition eliminating monopolistic competition landlines once controlled. New companies entered the market to compete with other mobile network providers. Later some companies in the market merged together targeting a larger consumer base in hopes to gain maximum profitability and earn its market share. As the demand for more innovative technology increased, management decided to move production overseas to cut labor …show more content…

With this merge, these two companies would be able to provide better products to its customers and hopefully gain its market share in the industry. Many service providers have announced that they will be providing unlimited 4G data in its plans; this has sparked a small price war among competitors. Verizon Wireless has said that the unlimited data to its customers in no longer sustainable and it will not fall under its competitors pressure to keep providing it as part of its mobile plans. Verizon will keep providing unlimited data to its older customers that have had de service before the announcement was made but will no longer provide it to its new …show more content…

“Telecom taxes are higher than other consumer items. Scholars across the political spectrum have criticized telecom taxes as burdensome, regressive, and stifling consumer choice. In response, legislation entitled the Wireless Tax Fairness Act, restricting excessive wireless taxes” (Taxfoundation.org, 2013). Verizon Wireless has recent announcement that users in the "top 5%" of data consumers would soon experience a slowdown in data speed if they are on a busy network (Abbruzzese, 2014). The Federal Communications Commission has sent a strongly worded letter to Verizon Wireless asking why the company has made it a policy to throttle customers with unlimited data plans and will probably soon take action to stop this practice (Abbruzzese,

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