Problem: According to Cahner's In Stat Group, the number of worldwide wireless phone subscribers will soon reach 1 billion. In the US alone, the number of subscribers is expected to rise by 17 million per year for the next 5 years. Contributing to the extensive growth are lower prices, larger geographic coverage, prepaid services, and Internet enabled phones. While the actual cost of basic wireless phone is about $75, most carriers offer their customers a free phone with a one year service agreement. Is this pricing strategy rational? Explain.