Bell is giving in to pressure from its subscribers and announced that it is lowering the cost of its most popular out-of-country plans. It said it cut prices by as much as 50 per cent because of the feedback it received over the summer, as it fought against the entry of Verizon into Canada and lobbied for the federal government to change the rules to make it more difficult for large foreign carriers to come to Canada and buy spectrum and small carriers in a bid to compete in this market against established players.
According to Porter Five Forces we learnt, Bell is using low price to defence against substitute. But this is not sacrificing profits to gain the market. Actually, quantity demanded of Bell is elastic, they will gain more consumers along with a high revenue. In a word, it is a stone of two birds.