Can Verizon Wireless and AT&T Price Battle boost sales?
As you may be aware, the two largest US carries, Verizon Wireless and iPhone carrier AT&T have stated they are to cut monthly prices on unlimited voice calling packages by $30. However an article over on business week says you shouldn’t be fooled.
Apparently although the price cuts mean cheaper voice calls, other price moves are meant to get customers to go for data plans which typically command a higher price tag which give the carriers bigger margins and thus increase revenue claims analysts.
Wells Fargo Securities analyst Jennifer Fritzsche says we could see a move upwards rather than downwards as any kind of voice pricing is a commodity and data is the future.
To put it a simpler way, Verizon could well sacrifice $540 million in voice revenue but increase data revenue further by an additional $630 million suggest Jonathan Chaplin an analyst for Credit Suisse. While JP Morgan estimates only roughly 2 percent of subscribers will see lower bills due to said price changes.