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story category SMS: You're Paying $1,310 (Or More) Per Megabyte
Nice business model you've got there...
(old news - 02:00PM Wednesday Jul 02 2008)
tags: business · wireless · bandwidth
This week T-Mobile decided to join carriers in charging twenty cents to send or receive a text messages, a trend that started last fall with Sprint. But AT&T also this week informed iPhone users that they'll be paying a little more for text messaging; outlets like Crunchgear and CNET doing the math that shows that iPhone SMS costs users around $1,310 per megabyte. Of course I recall that in July of last year Mobile Jones was the first to explore the absurd profit margins in SMS/MMS, with the GThing Science Project blog also highlighting the absurdity:
If you divide 140 (the total number of bytes available to you) by 20 (the cost per message), you find that you are paying 1 cent for every 7 bytes of data. This leaves you with a cost of $1,497.97 for the 1024Kbytes contained in a single megabyte. iPod users: It would cost you $5,991.88 to transfer - not even to buy - a single song via SMS.
Of course this assumes you're using all 160 characters available for each text message (which u don't k thx). Even though I've seen discussion on this front for years now, consumers continue to pay, so prices continue to rise. Despite the unchanged cost of providing such services, SMS prices have risen 100% in just two years.

Related:
  1. AT&T (Sort Of) Admits To iPhone Network Strain
  2. Did AT&T's Bad Week Kill Their iPhone Exclusivity Extension?
  3. AT&T Streamlines iPhone Wi-Fi Authentication
  4. Oh AT&T Tethering 'Sources,' You Taunt Us
  5. Group Takes Aim At Special Access Pricing
  6. iPhone 3GS Drives Explosion In YouTube Use
  7. Mythbusters' Savage The Latest Socked With Huge 3G Bill
  8. Breakdown of 3G Network Speeds, Reliability
Forums » SMS: You're Paying $1,310 (Or More) Per Megabyte
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MrHappy316
Wish I had my tank
Premium
join:2003-01-02
Summerville, SC
·AT&T DSL Service

Just Wait

Just wait till one of these cell phone spammers is successful at sending a ton of messages to a couple million subscribers. You think the wait times for customer service are bad now. The more expensive these things get the less people will overlook a spam message.
chriskern
Premium
join:2007-10-19
Hudson, FL

Re: Just Wait

That would be great! And maybe that's what it will take to fix this inequality of service(s).

en102
Canadian, eh?

join:2001-01-26
Valencia, CA
·RoadRunner Cable
·DSL EXTREME


1 edit
This is why I had AT&T block all SMS/MMS/Text messaging on my account. AT&T Wireless used to have free incoming messages.
Cingular/AT&T Mobility charge enough to force you to use a monthly plan. Since I have to have a phone plan, a call is cheaper, followed by a data plan with email.
--
Canada = Hollywood North

incomingfree

@gwi.net
That is why #1 I pay full price for a phone/ebay so I am not locked into a contract. #2 I don't ever plan to get service with a carrier that charges for incoming texts.

N10Cities
SILENCE I Keel You

join:2002-05-07
Lavaca, AR
clubs:
·World Lynx
·Cox HSI

Re: Just Wait

said by incomingfree :

That is why #1 I pay full price for a phone/ebay so I am not locked into a contract. #2 I don't ever plan to get service with a carrier that charges for incoming texts.
Good luck with finding one....they all charge for incoming texts...
cyclone_z

join:2006-06-19
Ames, IA
·Qwest.net

Re: Just Wait

said by N10Cities See Profile :

said by incomingfree :

That is why #1 I pay full price for a phone/ebay so I am not locked into a contract. #2 I don't ever plan to get service with a carrier that charges for incoming texts.
Good luck with finding one....they all charge for incoming texts...
In my area, iWireless (a T-Mobile affiliate) and US Cellular do NOT charge for incoming SMS on any plans AFAIK. Also, many prepaids do not charge for incoming or they are much cheaper.

insomniac84

join:2002-01-03
Schererville, IN

Main reason I am probably going prepaid and voip

I text message on my phone and to think I have to pay 40 bucks for the lowest plan and either add 15-20 dollars a month to get unlimited text messaging or to pay 20 cents a message. Right now I have a family plan but we are all graduated and going separate ways, so we are on our own. I cannot justify 55 bucks a month for a cellphone with basic features built in. For that price I would want to surf the web, but of course that is another 20-30 bucks. I've decided it would just be cheaper to get a prepaid phone for emergencies and use voip on a cordless phone while home. Maybe when cellphones cost 40 bucks a month with free text and web, I'll take another look.
hottboiinnc
ME

join:2003-10-15
Toledo, OH

Re: Main reason I am probably going prepaid and voip

MetroPCS, Revol and Cricket

insomniac84

join:2002-01-03
Schererville, IN

Re: Main reason I am probably going prepaid and voip

Nice in all but very limited. Cricket is the only one that covers Kansas City and it is worthless if I travel. Sprint would be good if it didn't require such a long contract. Looks like prepaid is the way to go.
hottboiinnc
ME

join:2003-10-15
Toledo, OH
·buckeye cable

Re: Main reason I am probably going prepaid and voip

Cricket offers roaming but its limited to 200minutes per month out side of the Cricket networks.

Did you look at TM? they offer FlexPay the benefits of a contract but without one? go to Wal-mart but a $70 phone call TM up and activate it under flex pay. You'll pay your first month up front but its nationwide service and no contracts. its month to month. don't like the service cancel before the next billing cycle. I have it and like it.

freeze
Magic Murder Bag
Premium
join:2001-05-13
Columbus, OH
It's called Sprint SERO. You should google it

$30/month, nationwide, unlimited data, unlimited text, 500 minutes.

cdru
Go Colts
Premium,MVM
join:2003-05-14
Fort Wayne, IN
·Verizon FIOS

I was kind of in the same boat as you were in. I didn't want to pay a ton of money for service, even more for texting, and even more for internet. But my wife insisted on getting cell phones for the two of us so we can always be in contact (yea ).

We ended up going with T-Mobile. We got a family myFaves plan which runs $60 for 900 minutes plus we each get 5 "faves" that we get unlimited calling. Individual plans are also available starting at $40 or less if you don't want the myFaves. T-Mobile has an under-advertised internet plan called t-zones that gives you unlimited e-mail and proxied web for 5.99. Screw text messages when you can send a real e-mail and with e-mail to text message gateways, you can still send TM to others.

jjoshua
Premium
join:2001-06-01
Scotch Plains, NJ

SMS is a waste

This s so silly. You pay for fone service but instead of calling sum1, u spend extra money 2 txt them.

dnoyeB
Ferrous Phallus

join:2000-10-09
Southfield, MI

Re: SMS is a waste

Its a great feature when you have to talk with women. You just text them the info and your golden. If you had to call, it would take you at least 10 minutes of discussion for the same thing.

With my Tmobile message plan I pay $0.0125 per message. Without a message plan its $0.15 per.
--
dnoyeB
"Then said I, Wisdom [is] better than strength: nevertheless the poor man's wisdom [is] despised, and his words are not heard. " Ecclesiastes 9:16
quatrix

join:2005-02-11
Davie, FL
You type like one of those frequent text-messagers. Anyone who uses "u" should be punched in the face.

DaMaGeINC
The Lan Man
Premium
join:2002-06-08
Greenville, SC
clubs:

Re: SMS is a waste

y

Quake110

join:2003-12-20
Ottawa, ON
y? u dont lke this type of msg? but its kool.
soccerguy

join:2004-06-28
Seattle, WA

Re: SMS is a waste

If you're 12, perhaps.

dadkins
Can you do Blu?
Premium,MVM
join:2003-09-26
Hercules, CA
Kiddie AOL-Speak.

zachary1
you talkin' to me?

join:2004-03-07
right here
and those who type txt instead of text should be shot on sight, because they're only saving one letter

Quiglag
God is Love
Premium
join:2004-09-19
Ontario, CA

Re: SMS is a waste

Blame Microsoft for that. notepad.txt

cdru
Go Colts
Premium,MVM
join:2003-05-14
Fort Wayne, IN
·Verizon FIOS

said by zachary1 See Profile :

and those who type txt instead of text should be shot on sight, because they're only saving one letter
Says the person who contracts they're and saves a single character in the process.

I hate the process in settings such as a online forum like DSLR as it does nothing but make a message harder to read or search on. But when you have 160 (or less) characters to get a message through, you save everywhere you can.

jjoshua
Premium
join:2001-06-01
Scotch Plains, NJ
·Verizon FIOS
·Comcast


1 edit
said by quatrix See Profile :

You type like one of those frequent text-messagers. Anyone who uses "u" should be punched in the face.
I translated my text to SMS. Chill.

»smspup.com/smsSpeak.php

burner50
Pinlifter
Premium,VIP
join:2002-06-05
EN22wm
·Mediacom
·FrontierNet Intern..

said by jjoshua See Profile :

This s so silly. You pay for fone service but instead of calling sum1, u spend extra money 2 txt them.
Not the only thing text messages are for. Work sends me a message at certain times. with this I dont have to call in all the time or check the website to see when I'm going to work.

heat84

join:2004-03-11
Fort Lauderdale, FL
·Comcast
·AT&T Southeast


1 edit
said by jjoshua See Profile :

This s so silly. You pay for fone service but instead of calling sum1, u spend extra money 2 txt them.
Yeah texting is stupid. There's no practical use for it that you can't also use the phone the conventional way. It only serves to distract kids in school and also help them cheat on tests.

And doesn't abbreviating alot make you dumber?
hottboiinnc
ME

join:2003-10-15
Toledo, OH

Re: SMS is a waste

sounds like an English teacher.

Dest
Bolo
Premium
join:2000-03-21
Naperville, IL
clubs:
lots of service can be used with texting...

Ebay auction ending for something you want to bid on.

Special Traffic Alert.

the upcoming national diaster alert system.

etc etc etc

ninjatutle
Premium

join:2006-01-02
San Ramon, CA

Disable txt messing services

Problem solved

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
·Cox HSI
·AT&T Southwest

Re: Disable txt messing services

said by ninjatutle See Profile :

Problem solved
Yeah that would work for me too, but not so much for families or others who have someone who INSISTS on using it.

PToN

join:2001-10-04
Houston, TX

Re: Disable txt messing services

You cant....

At least T-Mobile will not let you do it since they claim that they use SMS to provide customers with information about their bills...

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
·Cox HSI
·AT&T Southwest

Re: Disable txt messing services

said by PToN See Profile :

You cant....

At least T-Mobile will not let you do it since they claim that they use SMS to provide customers with information about their bills...
Ouch.

I see lawsuits in T-Mobile's future.

"We won't let you block it but we WILL force you to pay for messages you don't want."

My reply to that type of attitude is "You can kiss my ...."

:/ Gotta love the American spirit of customer service these days....
--
"Regulatory capitalism is when companies invest in lawyers, lobbyists, and politicians, instead of plant, people, and customer service." - former FCC Chairman William Kennard (A real FCC Chairman, unlike the current Corporate Spokesperson in the job!)
hottboiinnc
ME

join:2003-10-15
Toledo, OH
·buckeye cable

Re: Disable txt messing services

TM does provide you information about your account by text message. after you update your Favs, change the phone your SIM was in- it will text you to let you know your sim has been fully loaded and your Favs have been downloaded to that one phone for you to use.

Also their phones allow you to block texting. well at least my Samsung does.

RARPSL

join:1999-12-08
Suffern, NY

Re: Disable txt messing services

said by hottboiinnc See Profile :

TM does provide you information about your account by text message. after you update your Favs, change the phone your SIM was in- it will text you to let you know your sim has been fully loaded and your Favs have been downloaded to that one phone for you to use.
Those types of messages should not require a Messaging Account (or if you do have one, should not be charged-for/counted-against-your-allocation). They are push messages from the provider not a message from another user/provider. Also since the traffic that contains SMS messages is "free" (ie: It is piggybacked onto the required I'm-[still]-here handshake that tells the cell-tower you are reachable) there is no extra cost to the provider the transmit it.
hottboiinnc
ME

join:2003-10-15
Toledo, OH
·buckeye cable

Re: Disable txt messing services

their messages to you are free. I didn't say that. And i know how their system works for the most part the same as everyone elses. They just refuse to block SMS/Text and its their network. If it is set up that it would block their messages from reaching a customer than it is set up that way. But you have the option to block texts at your phone. Just have to go in and find it.
openbox9

join:2004-01-26
Alexandria, VA
VZW had no problems blocking SMS for my account. Yes, I no longer receive notifications regarding billing, but that's what e-mail is for.
Westofhere

join:2005-04-07
Monroe, WA

I just talked with T-Moblie and they are implementing sms blocking this month. The operator gave me 20 free sms's till the feature is installed.
She also advised they now have unlimited VOIP for $10 a month, just purchase the $50 router...not too shabby.
hottboiinnc
ME

join:2003-10-15
Toledo, OH

Re: Disable txt messing services

if you're allowed to sign up. FlexPay customers are NOT allowed to use their VoIP calling or anything else of that sort. We're stuck to our regular phones.
BigVe

join:2005-07-15
Gulliver, MI
·CenturyTel Inc.

said by PToN See Profile :

You cant....
At least T-Mobile will not let you do it since they claim that they use SMS to provide customers with information about their bills...
What a joke.It works for me with Alltel/Verizon as i have my text mesaging blocked.They can send me info on my bill etc. but NO other messages can be sent or received.

sivran
God Save The Suite
Premium
join:2003-09-15
Arlington, TX
clubs:
·RoadRunner Cable

said by PToN See Profile :

You cant....

At least T-Mobile will not let you do it since they claim that they use SMS to provide customers with information about their bills...
Those are free.
--
Think outside the fox...Seamonkey

djdanska
Premium,MVM
join:2001-04-21
Glen Ellyn, IL
clubs:
·Sprint Mobile Broa..
·T-Mobile US
·A + Net
·Mediacom
·RCN CABLE

said by PToN See Profile :

You cant....

At least T-Mobile will not let you do it since they claim that they use SMS to provide customers with information about their bills...
Apparently starting july 16th, you will have that option. It's been in the works for a while now.

»www.howardforums.com/showthread.···=1392568
--
When you do things right, people won't be sure you've done anything at all.
openbox9

join:2004-01-26
Alexandria, VA
"Insists" on using SMS? I guess if people have such a problem paying for service, then people wouldn't be "insisting" on text messages.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
·Cox HSI
·AT&T Southwest

Re: Disable txt messing services

If you'd stop thinking about everything as how it pertains only to yourself, you'd see the point.

I can see other situations where blocking/turning off SMS may cause problems for OTHER people's accounts. Obviously you're fine with it, so be it, but your situation isn't the same as everyone else.
--
"Regulatory capitalism is when companies invest in lawyers, lobbyists, and politicians, instead of plant, people, and customer service." - former FCC Chairman William Kennard (A real FCC Chairman, unlike the current Corporate Spokesperson in the job!)
openbox9

join:2004-01-26
Alexandria, VA
·AT&T Southeast

Re: Disable txt messing services

said by KrK See Profile :

your situation isn't the same as everyone else.
Nor is yours. That's what makes the plethora of choice so great. There are options available to satisfy everyone. The problem seems to be that some people don't want to acknowledge or pay for some of those options.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

Re: Disable txt messing services

The plethora of ways they try to make you pay extra for what you don't want is so great. There are not options to satisfy everyone.
openbox9

join:2004-01-26
Alexandria, VA

Re: Disable txt messing services

I'm sorry, you're right...there isn't a free plan.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

Re: Disable txt messing services

thor793

join:2005-09-10
Warrenville, IL
Exactly. Did that yesterday after receiving several spam messages. I plan to keep it disabled when I get an iPhone 3G. Without the text messages I'll be paying exactly what I'm paying now for my HTC 2125.

dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ

said by ninjatutle See Profile :

Problem solved
t-mobile WONT do that!
--
When I gez aju zavateh na nalechoo more new yonooz tonigh molinigh - Ken Lee

PhoenixDown
-- Wants FIOS
Premium
join:2003-06-08
Fresh Meadows, NY
clubs:

The irony here is...

That alphanumeric pager market died because of the rise of cell phones and the irony is that people use their cells to text more than they did with the pagers.

See 7 replies to this post
Joe12345678

join:2003-07-22
Des Plaines, IL

Why can't they have free incoming.

Why can't they have free incoming.

What will they do if some gets hit $1000+ bill for incoming SMS force you to pay it?

See 9 replies to this post
pabster

join:2001-12-09
Waterloo, IA

No big surprise...

...ARPU is down across the board. Consumers aren't all that sharp by-and-large. And we can sell $20 "All You Can Text" family plans!

netwire
Premium
join:2001-04-27
Mooresboro, NC
·RoadRunner Cable
·Millenicom
·Sprint Mobile Broa..
·Vonage

Erm...

Perhaps I am not understanding how this works, but... it cost you to send a message to someone, and it cost them to receive it - if they are on the same network the carrier is making double profit on that one message, even though they are only transferring it once. To me it seems like carriers make more of text and picture messaging than they do on actual voice plans, but then again I could be wrong.
--
World of Warcraft - My anti-drug.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
·Cox HSI
·AT&T Southwest

Re: Erm...

said by netwire See Profile :

Perhaps I am not understanding how this works, but... it cost you to send a message to someone, and it cost them to receive it - if they are on the same network the carrier is making double profit on that one message, even though they are only transferring it once. To me it seems like carriers make more of text and picture messaging than they do on actual voice plans, but then again I could be wrong.
My understanding is that wireless phones and the network "talk" to each other via packets all the time (whether you're on the phone or not)... and that txt messages actually fit into these packets. My understanding is that the additional cost of sending a txt message basically approaches zero over just having a regular wireless phone that is charged up.

I could be wrong but that's how it was explained to me, and that's why there's the technical limit of 161 characters (the max that will fit in one packet.)
--
"Regulatory capitalism is when companies invest in lawyers, lobbyists, and politicians, instead of plant, people, and customer service." - former FCC Chairman William Kennard (A real FCC Chairman, unlike the current Corporate Spokesperson in the job!)

insomniac84

join:2002-01-03
Schererville, IN

Re: Erm...

No you are correct. Text messages use no extra bandwidth. They were created to profit off of something that is inherently free. That way large 20 dollar fees for unlimited messages or high per message fees are 100% profit. Because of that, there is little chance they will ever remove those fees because the profit hits would be way to great.

BF69

join:2004-07-28
Camden, TN

Re: Erm...

said by insomniac84 See Profile :

No you are correct. Text messages use no extra bandwidth.
Yep you have have to send over 52,000 txt messages( assuming you used all 160 characters ) to use up just one MB of data. Peole thinking paying $20 for unlimite texting is a good bargin have no clue. Hell Verizon will charge you $1.99 per MB of data. And that a joke in of itself and paying $20 for that is a deal?

Why Congress isn't looking into this I don't get.
cyclone_z

join:2006-06-19
Ames, IA
·Qwest.net

Re: Erm...

Yes it's a complete rip-off. I never use all my peak minutes anyway and N&W are unltd. So I make calls instead of buying a ripoff SMS package. It actually costs Verizon more if I make a call, in terms of network capacity. Calls take up either 8Kbps or 13Kbps depending on the CDMA codec being used. It costs them even more if it's not a Verizon phone; then AFAIK they have to pay a call termination fee to the other carrier at a per-minute rate.
wierdo

join:2001-02-16
Tulsa, OK
·Future Nine Corpor..
·Teliax VOIP

said by KrK See Profile :

said by netwire See Profile :

Perhaps I am not understanding how this works, but... it cost you to send a message to someone, and it cost them to receive it - if they are on the same network the carrier is making double profit on that one message, even though they are only transferring it once. To me it seems like carriers make more of text and picture messaging than they do on actual voice plans, but then again I could be wrong.
My understanding is that wireless phones and the network "talk" to each other via packets all the time (whether you're on the phone or not)... and that txt messages actually fit into these packets. My understanding is that the additional cost of sending a txt message basically approaches zero over just having a regular wireless phone that is charged up.

I could be wrong but that's how it was explained to me, and that's why there's the technical limit of 161 characters (the max that will fit in one packet.)
You are partly correct. Text messages (on GSM!) are usually transferred on the control channel. The one that tells your phone you're getting a call, or where your phone tells the network "I've answered" or "I received that message." They can be transferred over GPRS, but that's rarely implemented by the carriers.

Your phone doesn't actually use the control channel that much when it's just idling. That's why they last so long in standby. Every 10 seconds or so, it wakes up to listen for a paging message telling it it's receiving a call. Every 10 or 20 minutes (it depends on what the specific carrier has set the specific cell to require) the phone re-registers with the network. If you have lots of phones in one area, the control channel can get pretty congested.

So yes, technically SMS is using a resource that's already there, but it's a very important resource that, when exhausted, causes the entire network to come crashing down. That's why your phone asks for permission to send the message, and the network will wait to push a message out to you until a time that is convenient for it.

While the increasing charges are likely just profit taking by the carriers, there may be a component of attempting to restrict usage to some degree to keep delivery times decent.

Personally, I don't care what at&t does with text message charges. I'm unlikely to burn through 1500 SMS and 200 MMS that I get for what I consider free. I have the old MEdia Works plan that includes the messages plus unlimited data, which I bought for the data, not the messages. I suppose at&t is selling a $15/mo unlimited data package, so I should consider the messages a $5/mo expense...
--
It's wierdo, not weirdo. Yes, I know that's not the 'proper' spelling of the similar english language word.

Matt
Quitting Caffeine - Argh
Premium
join:2003-07-20
Jamestown, NC
·North State Commun..


1 edit

Tk is thinking, "Excellent!"

You know Tk is on the golf course, tapping his fingers together like Mr. Burns and thinking "Excellent!" Seriously, I kid Tk.

This article is assuming you pay per text. I pay Verizon $20 extra dollars per month for every one of the phones on my family plan to have unlimited text messaging.
Tigerpaw509
Premium
join:2006-07-15
Huntley, IL

$19.95

I have 6 cell phones on ATT service and pay $19.95 unlimited texting on all 6.Its not that bad at all

amarryat
Verizon FiOS

join:2005-05-02
Marshfield, MA
·Verizon FIOS

Blackberry too

I have a Blackberry, and I can surf the internet on it 'til the cows come home. And I can send as many emails as I want. I can even send them to nnn-nnn-nnnn@wirelessprovider.com for free. But if I "compose SMS TXT" instead, it costs me. Make sense?
EPS

join:2008-02-13
Hingham, MA

Re: Blackberry too

The SMS gateways really hurt the justification for high text charges... if it's so expensive, why can you do it free via e-mail?
romulusnr

join:2007-08-01
Federal Way, WA

Chug chug chug

I don't suppose it helps that SMS is a technology that is what, 15 years old? I don't imagine there's been much development in better SMS handling systems.

SMS should be replaced with IP-based services anyway. It's dumb to have multiple data realms. About as dumb as sending a floppy disk in the mail would be today. GSM providers eventually realized it would be cheaper/easier to just give legacy CSD users new phones and support than to keep its CSD gateways plugged in and chugging.
EPS

join:2008-02-13
Hingham, MA

Re: Chug chug chug

SMS piggybacks on existing communications phones have to do anyway- it's probably less expensive for a carrier to do a transmission via SMS than via say, an AIM program on the data network.

dispatcher21

join:2004-01-22
united state

A for profit company making a profit...how evil!

These companies are here to make money, not be a charity. If you cant afford or dont agree with the prices, dont use it. I dont see what the problem here is.
notwrth10

join:2007-03-03
1001EB

Re: A for profit company making a profit...how evil!

said by dispatcher21 See Profile :

These companies are here to make money, not be a charity. If you cant afford or dont agree with the prices, dont use it. I dont see what the problem here is.
Oh, f**k who brought out the smart people. Dammit you should contain that s**t. That s**t here gets you moderated and watched like a bad puppy.
bgraham

join:2001-03-15
Smithtown, NY
·Verizon FIOS

said by dispatcher21 See Profile :

These companies are here to make money, not be a charity. If you cant afford or dont agree with the prices, dont use it. I dont see what the problem here is.
My feeling entirely. I'm a technology freak probably more than most, but some things are just getting too expensive. We were using 100 minutes a month and had a 700 minute cell phone plan costing $65. 100 minutes equates to .65 cents a minute. My usage was 6 minutes last month and at a cost of $30 for my half of the family plan equates to $5 per minute.
I bet the phone company loves us. Even in the hey day of Ma Bell I don't think they got 65 cents per minute for local calls.
I dumped my phone and we now have a $30 plan with 200 minutes for my wife. I might get a prepaid phone for $25 and leave it in the car.
pabster

join:2001-12-09
Waterloo, IA

Re: A for profit company making a profit...how evil!

"I might get a prepaid phone for $25 and leave it in the car."

Precisely what I do. 2 of them, in fact. No reason to pay the money grubbers those ridiculous monthly service charges for little to no usage.

zachary1
you talkin' to me?

join:2004-03-07
right here
What? Hi Rush! How's the OxyMoron going these days?
jester121

join:2003-08-09
Lake Zurich, IL
·ViaTalk

So what?

Completely lost -- who gives a crap what the cost per megabyte is for texting? Why not talk about $/minute of electricity used to charge the phone battery?

I bought a car this week and paid over $6 per pound -- isn't that amazing? My first car was a 2000 lb Toyota and I only paid about $2 per pound for that one. Bastards!

Last weekend I went to a nudie bar and had a lapdance, and paid over $0.10 per second, we should have a protest.

Or wait, how about this -- I decide it's worth $0.15 or $0.20 to share a thought with someone I know using a text message. So I do it. Or, I think better of it and don't.

B.F.D.
Cod

join:2000-07-05
Greensboro, NC

Re: So what?

I went and bought a diet coke (20 oz) for $1.49 at the gas station today... Dammit if they didn't have 2 liters on sale for .89 cents (68 oz versus 20 oz). AMAZING!!!!! Coca-Cola Inc should be ashamed of themselves!!!!

dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ

Re: So what?

said by Cod See Profile :

I went and bought a diet coke (20 oz) for $1.49 at the gas station today... Dammit if they didn't have 2 liters on sale for .89 cents (68 oz versus 20 oz). AMAZING!!!!! Coca-Cola Inc should be ashamed of themselves!!!!
the 20oz was probably cold and the 2litre just on the shelf room temp.
--
When I gez aju zavateh na nalechoo more new yonooz tonigh molinigh - Ken Lee

zachary1
you talkin' to me?

join:2004-03-07
right here
10 cents a second for a lapdance? That's a bargoon!
voipdabbler

join:2006-04-27
Kalispell, MT

Easy credit--no one thinks, they just go in to debt

Easy credit isn't a panacea--it's actually a curse. Too many people have become dependent on juggling multiple credit cards to satisfy impulse buying; most often buying things they can't afford. This goes for services too, like cellular phones. I know far too many people, especially young people, who haven't had any real training in basic economics or personal finance, who run up large monthly cellular bills on contract phones (some just don't like the stigma of prepaid, which is a better option for many on tight budgets). Some of them then use a credit card to pay those bills and begin building up huge amounts of debt.

This country really needs to begin teaching economics and personal finance to kids at an early age. They need to understand the huge cost of using credit cards.

I've said it before, the fact that 70 percent of our GDP is consumer spending presents a huge national security issue. It shows how little manufacturing capability we have remaining in this country. It also shows how much foreign investors are propping up our financial institutions. How much long that will continue, given the sliding value of the dollar, who knows. As a country, we're going to be hard pressed to remain a super power in ten years time if our current trends continue.
ISurfTooMuch

join:2007-04-23
Tuscaloosa, AL

Re: Easy credit--no one thinks, they just go in to debt

You're exactly right, and that's why it will never happen if the government has any say in teaching it. Our economy is dysfunctional in that it requires continuous growth to survive. Companies aren't satisfied with profits that remain constant quarter after quarter. They demand growth, Growth, GROWTH. Anything less is considered failure. This means that consumers (don't you love that term???) are expected to spend, Spend, SPEND. That's why credit is so easy to get and so hard to pay off.

And remember those so-called stimulus checks? Did the government ask us to use those to pay down debts or to add to savings? No, they asked us to spend them. It didn't matter on what, just spend them. Fortunately, many people had their own ideas on how to use that money, which is why it didn't get spent on frivolous purchases, by and large. People used it to try to make a dent in their debt. But you see the problem here. Good fiscal responsibility dictates that you pay off your debts before you spend more money. Did the government advocate that? No, we were told to spend, even if that wasn't the wise thing to do.

So, to get back to your post, if kids are going to learn to manage money, they shouldn't look to the government to teach them. And our habits are going to have to change. Some might say that, if we stop spending like crazy, the economy will crash. I say that this outcome is probably inevitable, and the best we can hope for is to soften the blow by being fiscally responsible. Tough times are coming, so get your financial house in order.

And just to keep this post on-topic, yes, text charges are outrageous, but it's because people are willing to pay them. If people tell the cell companies they aren't going to use that service, then prices will come down. Don't text and tell your teenage kids that they aren't going to be texting anymore either because it's too expensive. No one's life will end because they stop texting. They may whine about it, but, if they want a phone to text, they can get a job to pay for it. That will be their first lesson in economics that they so badly need.

biasedmuch

@swbell.net

from:
Richard Reed See Profile

why

why is this even a news article?

nobody is using SMS to transfer actual "DATA" like the headline suggests.

Part of the reason this costs so much is that it uses the SS7 signaling network to actually carry the message.

Richard Reed
Premium
join:2007-08-28
Chesapeake, VA

Re: why

He is exactly right, SS7 have VERY LIMITED bandwidth and all messages go thru it. Each SS7 link is limited to 56 or 64 kbps.. My wireless MTSO has 4 pair links. So thats why it is very expensive.

One other thing to consider, sending pictures is being sent via main data pipe.

Richard B
Fur It Up

join:2007-06-22
Portland, OR
·Comcast

Deeply flawed, dishonest, and inflated

The problem with the hypothetical used is they are comparing apples to oranges for example for cent article to inflate the cost.

"Carriers limit the number of characters that can be transmitted in a text message to 160 characters. Each character is about 7 bits, which works out to a maximum of about 140 bytes of data per text message. This is peanuts compared with the size of sending or receiving an e-mail or downloading an MP3 song over a cellular network.

One blogger has done the math. If the same pricing was applied on a per-byte basis to downloading one 4MB song it would cost the user almost $6,000 to download a single song via SMS texting."

One can not compare downloading an 140 byte SMS message to that of a 4MB MP3 since one is limited to 140 byte per SMS text, it will take 29,959 separate messages to download a 4MB file. another way to look at the flaw I would need to send 3.4 messages a hour 24/7 for a year just to reach the 4MB mark.

aelfwyne

join:2004-01-28
Beaumont, TX
·RoadRunner Cable

A way to force texting plans on those who don't text

The problem I have with this - and probably why the carriers are doing it - is that most of those who pay these high fees are those who prefer not to text at all.

In my case, I have in the past left texting enabled on my phone (if blocking it is even an option, which it isn't always) just in case anyone I know has something extremely urgent, they can text me.

However, friends of mine abuse this and send me unrequested texts. Also I've recently received several "spam" texts. On many phones/plans, you pay for the text whether you open/read it or not.

I have one friend who infuriates me to no end. She will not answer her phone (a Helio Ocean of course), and only responds to texts. Worse, if I send her a message like "Will be there at 10:30" she feels she HAS to respond with "Ok"... a 15 cent "Ok" I've tried to tell her over and over, but she says "it's automatic, I don't think about it"...

So I'm as we speak trying to figure out how to completely disable texting on my phone, as last month's texting charges for unwanted texts on my phone exceeded what a basic texting plan would cost me.

And of course, the carriers know this. They make it so you can't "not read" a text to avoid the charge. They will surely try, as time goes by, to make it harder to turn texting off as well.

Finally, they are bundling texting into the "everything" plans as a way to justify higher charges. I pay $39.99 for 450 minutes. If I want unlimited data, that's $15.00 more - so $54.99... But Sprint's Everything plan with 450 minutes is...... .. $69.99? So I would be paying another $15.00 for unlimited texting I DO NOT WANT... of course, that's what I'll be locked into if I get an Instinct, as it's the minimum plan. And it's a "deal" supposedly, since I'd be getting unlimited texting! That I don't want.
--
If it ain't broke..... You didn't overclock it enough.

NetAdmin

join:2008-05-22

All the more reason...

Just an illustration of the reason why I do not use text messaging on my personal phones. Sorry, but I refuse to pay $.20 per message when it costs them no where near that to send and receive those messages. I don't go to work and earn a paycheck just to get into the habit throwing my money away to boost a company's profits by paying excessive markups. And the truth is, I'm not a texting addict, so an unlimited texting plan is a waste of money for me. Just give me a voice line and the ability to check my email at a reasonable price.
--
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Over ten plus years of carrying The Clue Bat...

NOCMan
Verizon Fios User
Premium
join:2004-09-30
Flower Mound, TX

Billions of Dollars

SMS is the cash cow of wireless companies. These platforms were paid for months after being built, and upgrades get paid for weeks after being done.

Data is still a small portion of revenues compared to the voice plans, however it increasingly becomes more as services expand into using data.

I would not be surprised if the iPhone AOL app uses SMS messages to communicate.
--
Mac Chatter
»www.macchatter.net
EPS

join:2008-02-13
Hingham, MA

Re: Billions of Dollars

It's supposed to be available for the iPod touch as well, which means it won't use SMS. (Or maybe they'll just release a non-SMS version for the touch)
Forums » SMS: You're Paying $1,310 (Or More) Per Megabytepage: 1 · 2


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