Thursday, December 10, 2009

Verizon

Verizon has been expanding enormously, Verizon used to just be a plain old telephone service before it hit wireless, internet, and television provider. Over time it has moved into all of these markets. Since they were able to do so they have been able to utilize bundling in their pricing structures. At this time Verizon has already launched Verizon Fios which is fiber optic telephone, internet and cable television service. Since they have all of these services available they can add telephone service with the internet and cable tv and they can price these services more cheaply because they do not have to provide 3 lines to the house for all three services they only need one. so they are able to pass the savings on to the consumer and undercut the competition using bertrand pricing. Therefore in the markets that they are in they are dominating and acquiring the largest portion of the market.

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