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Forums » How Much Are You Paying For SMS Bandwidth? » SMS, number port fee, etc, all cash cows
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ColorBASIC
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SMS, number port fee, etc, all cash cows

Much like every other add-on, texting is a total cash cow for wireless providers.

telcolackey
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join:2007-04-06
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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.

ColorBASIC
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4 edits

Re: Broadband costs

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.

TKJunkMail
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3 edits

Re: Broadband costs

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
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Re: Broadband costs

Yeah, and they're charging up to .30 per message. You want to claim that SMS isn't high margin?
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en102
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Re: Broadband costs

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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Re: Broadband costs

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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said by en102 See Profile :

This is similar to AT&T charging $5/month for caller ID.
I think it's more like $8.50 or $9.00
tamovies

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Rumford, ME

Re: Broadband costs


I pay $7.75

TKJunkMail
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said by ColorBASIC See Profile :

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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ColorBASIC
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Re: Broadband costs

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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tiger72
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said by TKJunkMail See Profile :

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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Anonuser

join:2003-01-03
Milwaukee, WI

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
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join:2002-05-30
Saratoga, CA

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).

ColorBASIC
8-bit Fun
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join:2006-12-29
Corona, CA

Re: SMS, number port fee, etc, all cash cows

Holy smokes...so it's just 'free money' to the provider.
macmouse
Premium
join:2002-05-30
Saratoga, CA

Re: SMS, number port fee, etc, all cash cows

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...

ColorBASIC
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Corona, CA

Re: SMS, number port fee, etc, all cash cows

Nice to know that .30/message is well earned by AT&T.
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