There was a story in today’s paper that caught my eye about the recent price cuts on mobile data/voice plans announced by AT&T and Verizon Wireless and the potential impact of these cuts on Sprint, a company that has been positioning itself as a cost leader.  As we discussed in class, a cost leader can only hold that position until someone else comes along and offers a lower price.  That hasn’t happened yet, but there is an argument that even though AT&T and Verizon Wireless are pricing their packages higher that Sprint still could be threatened.  It will ge interesting to watch Sprint’s response and how this plays out between the two market leaders and Sprint.  Stay tuned.

Sprint Squeezed by Rival Price Cuts — Carrier’s Lower-Price Lure May Be Undercut by Reductions at AT&T, Verizon. Niraj Sheth. Wall Street Journal. (Eastern edition). New York, N.Y.: Jan 21, 2010. pg. B.8

Corporate News: Verizon, AT&T Escalate Pricing War — Carriers Race to Drop Calling-Plan Prices, But Require More Customers to Pay for Data Services. Niraj Sheth. Wall Street Journal. (Eastern edition). New York, N.Y.: Jan 16, 2010. pg. B.5