ColorBASIC
8-bit Fun
Premium
join:2006-12-29
Corona, CA | SMS, number port fee, etc, all cash cows
Much like every other add-on, texting is a total cash cow for wireless providers. |
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telcolackey
The Truth? You can't handle the truth
join:2007-04-06
Death Valley, CA | Broadband costs
And people keep complaining about speed and costs associated with broadband. Do the same math on that service and compare it with wireless and dedicated circuits. |
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ColorBASIC
8-bit Fun
Premium
join:2006-12-29
Corona, CA
4 edits | The point of the article is that it doesn't cost where SMS is concerned. The wireless providers are gouging customers big time, to the tune of $1,000.00 per MB. While I can understand that processing 6500 messages costs money even the biggest telco shill would acknowledge that processing the messages at .15-.30 each (since they charge both outgoing AND incoming) is a very high margin operation. |
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GOLFnSUN
Enjoy the sun
Premium
join:2002-03-03
Avalon, NJ
 ·Sprint Mobile Broa..
 ·Comcast
3 edits | And the method of calculating cost by "Mobile Jones" is, as usual, bogus. The cost to the cell provider isn't on how many bytes are transmitted. The cost is based on use of a channel(from a limited number of channels) on the cell tower and how long it takes to grab the wireless spectrum, establish the connection, and then transmit, and then take down the connection. Every time someone sends a 20 byte message, all those costs are incurred and they far exceed the costs of some theoretical bandwidth usage. And then every time a new message is sent(20 secs later for example), the whole process starts all over again.
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ColorBASIC
8-bit Fun
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join:2006-12-29
Corona, CA | Yeah, and they're charging up to .30 per message. You want to claim that SMS isn't high margin?
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Macintosh Users Group Serving the Inland Empire |
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tiger72
SexaT duorP
Premium
join:2001-03-28
Saint Louis, MO
clubs:
·T-Mobile US
·RoadRunner Cable
| reply to GOLFnSUN
said by GOLFnSUN  :And the method of calculating cost by "Mobile Jones" is, as usual, bogus. The cost to the cell provider isn't on how many bytes are transmitted. The cost is based on use of a channel(from a limited number of channels) on the cell tower and how long it takes to grab the wireless spectrum, establish the connection, and then transmit, and then take down the connection. Every time someone sends a 20 byte message, all those costs are incurred and they far exceed the costs of some theoretical bandwidth usage. And then every time a new message is sent(20 secs later for example), the whole process starts all over again. My my my! So costly! It's a downright miracle that people can make telephone calls with their cell phones!
practically instantaneous sending of a 20Byte message takes mere seconds, and doesn't hog the channel like talking does, yet talking on a cell phone is now bargain-bin stuff.
hrrrmmm....
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en102
Canadian, eh?
join:2001-01-26
Valencia, CA
·RoadRunner Cable
 ·DSL EXTREME
| reply to ColorBASIC
Hell ya its high (this stuff, and forced signing of these kind of plans for discounts on devices) ticks me off. I've actually put a block on all SMS/MMS/Text on my phone. Email is much cheaper than MMS/SMS for the consumer.
On another note: I USED to have SMS/MMS when I was with the original AT&T Wireless - they offered unlimited FREE inbound messaging (SMS/MMS/txt email). I somehow don't think that the cost of this service has increased.
This is similar to AT&T charging $5/month for caller ID.
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GOLFnSUN
Enjoy the sun
Premium
join:2002-03-03
Avalon, NJ
·Sprint Mobile Broa..
·Comcast
| reply to ColorBASIC
said by ColorBASIC :Yeah, and they're charging up to .30 per message. You want to claim that SMS isn't high margin? Yes, it is high. Don't like the price, then don't use it. I have SMS blocked on my cellphone inbound and outbound.
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djrobx
join:2000-05-31
Valencia, CA
 ·PHONE POWER
 ·AT&T U-Verse
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·Time Warner VOIP
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| reply to en102
quote:
This is similar to AT&T charging $5/month for caller ID.
EXACTLY! I have an unlimited data plan. Texting is crude joke compared to the phone's data capabilities. Getting charged for INCOMING texts is insulting / double dipping.
Competition seems to be slowly working to improve the situation, though. An extra $5/month now gets me unlimited M2M texts (over the 200 included with the $19.95 data/text plan). It's still highway robbery for what it is, but at least I don't have to cringe when I get an incoming spam text.
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ColorBASIC
8-bit Fun
Premium
join:2006-12-29
Corona, CA
| reply to GOLFnSUN
Don't like it/don't use it is a different issue from whether or not it's a cash cow. I use SMS all the time for per personal and business so I use a prepaid option but it doesn't change the fact that AT&T is making a mint on it.
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Anonuser
join:2003-01-03
Milwaukee, WI
| reply to ColorBASIC
Re: SMS, number port fee, etc, all cash cows
Interesting. I have following for $30/month.
500 anytime
unlimited nights and weekends at 7pm
unlimited pcs powervision+picture mail
unlimited roaming
unlimited texting in and out (non international)
unlimited sprint to sprint.
Got the above, no harassing retentions. I called up to renew my SERO contract, and the lady said, as long as I was on the phone, would I like unlimited text messaging and nights starting at 7 for no additional charge? I of course said yes 
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macmouse
Premium
join:2002-05-30
Saratoga, CA
| reply to ColorBASIC
the reason there is the 160 character limit for SMS (over CDMA network - it is like 140 with GSM) is because that is the size of the data payload for a /single/ data frame for the protocol.
every second or so (whatever the timing is), your cell phone sends a "im still here" signal, which is a standard packet with the appropiate headers with a empty payload. So, when you send a SMS, data is entered into that status update packet that is routinely sent out (and why there is a slight delay before it is sent out, because it is waiting for its turn).
Thus, in effect it costs the company nothing in airtime cost because that air time would be intentionally left empty anyway (and a tiny fraction of a cent in data network costs). |
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ColorBASIC
8-bit Fun
Premium
join:2006-12-29
Corona, CA | Holy smokes...so it's just 'free money' to the provider. |
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macmouse
Premium
join:2002-05-30
Saratoga, CA
| yeah. that is why you can send/recieve a text message when the system is overloaded (and all of voice channels are in use).
For that matter, It costs them (the company) /more/ to handle voice (or even inet) connections from a technical standpoint. and yet you pay *extra* for it in the US (vs free in europe, japan,etc). I can't come up with any logical reasons on why they are doing it this way... |
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ColorBASIC
8-bit Fun
Premium
join:2006-12-29
Corona, CA | Nice to know that .30/message is well earned by AT&T.  |
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KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
·AT&T Yahoo
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| reply to en102
Re: Broadband costs
said by en102 :This is similar to AT&T charging $5/month for caller ID. I think it's more like $8.50 or $9.00 |
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tamovies
join:2007-02-25
Rumford, ME |
I pay $7.75 |
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