IntroductionVerizon Wireless is a joint venture between Verizon Communications of New Jersey and the European telecommunications company “Vodafone”. Verizon Wireless is a wireless communications carrier that operates in the continental United States. Currently, Verizon Wireless provides wireless communications services to more than 60 million customers nationwide, including Hawaii and Alaska. Its products include wireless voice and data services using the largest wireless voice and data network in the United States. Cingular Wireless is currently the leading mobile carrier in terms of the number of customers on its wireless network. However, as Verizon Wireless continues to increase its market share as the second largest wireless carrier in the United States, it ranks first in terms of total revenue collected as well as how it is viewed by Wall Street. Verizon Wireless's strong market position, perception of quality, and proportion of its revenues possess a strong competitive advantage that would allow for a slight increase in price - making demand inelastic, "the demand for quality expands very little in response to the price change" (McConnell et . al, 2004). Verizon Wireless' cellular service is inelastic because the products and services it offers make it the dominant leader in the wireless industry; therefore, a 10% change in calling plan prices (monthly access charges) would not affect the quantity demanded. Verizon Wireless can count on this inelasticity in its pricing model due to the strength of its brand and the depth of products and services it offers. Verizon Wireless' competitive advantage comes from its ultra-low churn rate (the percentage of customers who disconnect their service represents less than 1% of its 60 million customer base). This metric suggests that customers are satisfied with the service offered by Verizon Wireless and that a slight price increase would likely not push its customers toward the competition. This data also suggests that customers are likely remaining loyal to Verizon Wireless because of its continued expansion of new technologies and services such as its all-digital nationwide CDMA network, "EVDO," or its advanced data network (used to send and receive wireless email and other data). almost everywhere in the United States) and VoIP (Voice over Internet Protocol) which they use for their Push to Talk products. Verizon Wireless caters to almost every demographic in the country and most of its services are offered in small rural markets, a direct result of the billion dollars per quarter it spends on improving its network as well as acquiring wireless networks. smaller wires to develop its national network. stronger and bigger.