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Wataniya Mobile is offering cellular service in the Palestinian territories.It is only the second cellphone carrier in the region and is significant because it is owned by foreign companies and investors like the Qatari royal family and the Palestine Investment Fund.The new service is aimed at increasing cellphone penetration,which is only 35%,in this economically challenged area.It has not been easy for Wataniya,though.It took two years to gain the required license from Israel,which controls the Palestinian territories' airwaves and bandwidth required for the service.Even though Wataniya is allowed bandwidth,it has only received 3.8 megahertz of bandwidth from Israel,which is not enough for it to offer 3G mobile services that enable Web browsing and email.
-Refer to Wataniya Mobile.The fact that many potential customers in Wataniya's market cannot afford a cellphone is part of which environment?
Annual Fixed Costs
Expenses that a business incurs that do not fluctuate with changes in production level or sales volume, such as rent or salaries, benchmarked on a yearly basis.
Graphical Approach
A method of solving problems or representing data using charts, graphs, or diagrams.
CVP Analysis
Short for Cost-Volume-Profit Analysis, a tool used to determine how changes in cost and volume affect a company's operating income and net income.
Variable Costs
Variable Costs are costs that vary directly with the level of production or sales volume.
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