Blog: T-Mobile Hasn’t Incited a Price War…Yet - Rafi Mohammed | Harvard Business Review
T-Mobile is basking in the limelight courtesy of masterful marketing and an aggressive promotion launched last week. First, its CEO, John Legere, was ceremoniously kicked out of a Las Vegas party thrown by wireless rival AT&T. But what’s really generating buzz is the fourth largest U.S. wireless carrier’s offer to pay up to $650 for new customers to switch to its service. While analysts fear this will spark a margin-eroding price war, this concern is premature.
Since early last year, T-Mobile has spearheaded what I call a value war — as opposed to a price war — in the wireless market. Instead of attracting customers by promoting discounts on its monthly service prices, it’s wisely chosen to compete by adding value.
Read complete blog here:
http://blogs.hbr.org/2014/01/t-mobile-hasnt-incited-a-price-waryet/
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