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War Rages Over A Popular Motorola Cell Phone

12-13-2005 08:04 AM CET | Media & Telecommunications

Press release from: Cell Phones and Plans

Typically, there can only be one winner to emerge from any battle. However, that may not be the case in the pricing war between Cingular Wireless and Verizon Wireless - two of the largest U.S. wireless carriers.

"In 7 years of this business, I don't think I've ever seen such a blatant pricing war," says Mark Taylor of www.unwiredwarehouse.com. "We've been able to offer the Motorola Razr for a lower price than some of the less popular cell phones and our customers are thrilled about that."

As Verizon releases it's own (CDMA) version of the Motorola Razr V3c for $99, Cingular responded by lowering their price to only $39.99, which is far less than the initial price of $499.99 only a year ago. The price reduction seems to be a strategic move on the part of both wireless companies to gain a larger portion of the market share by having customers agree to a 2-year contract.

The deep discounts are highly unusual for such a hot gadget, but that means good news for the bargain shoppers that decided to wait until the price came down. Many of the 49.3 million Verizon customers have anticipated the launch of the new CDMA version ever since Cingular was granted an exclusive 12 month license by Motorola to carry the Razr handset.

Both companies already offer some of the best wireless features of any company. Cingular offers it's EDGE High-Speed Internet and Verizon has TV on-demand with their V-Cast, which is supported by their own Wireless Broadband internet.

Representatives for the two wireless companies couldn’t be reached for comment.

Eventually, as the battle is sure to continue, a one company will gain a larger portion of the wireless market. But already, in just a few days, the customers have emerged as the clear winners in the pricing war between two wireless giants.

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