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story category Friedhelm Hillebrand, Father Of The Text Message
Before Twitter, there was Hillebrand and 160 characters...
(old news - 01:40PM Monday May 04 2009)
tags: prices · business · wireless · hardware · consumers
The Los Angeles Times profiles Friedhelm Hillebrand, the father of the short messaging service (SMS) or text message. Hillebrand helped settle on the modern 160 character limit, and helped develop the idea of tucking the messages into the control channels of wireless networks. Tucking the 140 byte messages into this secondary channel means it costs carriers virtually nothing to provide the service, yet countless carriers now charge up to 20 cents per message or up to $20 per month for unlimited messaging. Of course consumers seem perfectly willing to pay, as 3.3 trillion messages are expected to be sent in 2009. None of that money goes to Hillebrand, though "that would be nice," he says.

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Forums » Friedhelm Hillebrand, Father Of The Text Message
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benc
Premium
join:2007-06-17
Glen Carbon, IL
·Charter Pipeline
·Future Nine Corpor..
·Callcentric
·AT&T Midwest

Text Messages Cost $1,342,177.28 per GB

1GB = 1,073,741,824 bytes

1,073,741,824 bytes / 160 bytes per SMS = 6,710,886.4 SMS

6,710,886.4 SMS * $.20 per SMS = $1,342,177.28 per GB

Absolutely disgusting!

OK, so no one will ever send over 6 million SMS messages in a single month. Yet an unlimited SMS option costs $20 / mo. So that's $20 for less than 1GB of data transfer.

They could charge $.01 per SMS, or $1/mo. for unlimited SMS and still have a huge markup.

With the advent of mobile Internet, and the ability to use mobile E-mail, there is no more reason to use SMS messages. For contacts without mobile E-mail, you can use an E-mail to SMS gateway.

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

Re: Text Messages Cost $1,342,177.28 per GB

My old ATT plan was great

5 cents for outgoing text messages
Free incomming
No additional monthly charge!

JasonOD

@comcast.net

You don't have to text BTW. This is a value add and it would be bad business if they didn't try to obtain maximum revenue. It also provides some cash-flow stability. If there is a competitive or market driven reason for them to not charge so much, they won't. And it's not like other industries don't do this. Ink is a major cash cow for the printer industry. Overages may be the next cash cow for the Telco's and Cableco's as well.

sousademiami

join:2003-02-04
Miami, FL

Re: Text Messages Cost $1,342,177.28 per GB

You don't have to text, but for those of us who know we're getting ripped off, educating others can help lower our costs.
--
OASAASLLS

james

join:2001-02-26
antarctica

said by JasonOD :

it would be bad business if they didn't try to obtain maximum revenue.
That's exactly the short-sighted attitude that has caused long respected companies to lose loyal customers who have bought their products for decades.

Yeah, it makes sense for the CEO and shareholders who will bail out in 2 years, but the company is completely screwed after those 2 years when the once loyal customers decide to shop elsewhere.

Would you rather rip me off for $50 right now and never see me again, or would you rather I give you $10 a week for the rest of my life?
DonLibes
Premium,ExMod 2001
join:2003-01-19

Re: Text Messages Cost $1,342,177.28 per GB

said by james See Profile :

said by JasonOD :

it would be bad business if they didn't try to obtain maximum revenue.
That's exactly the short-sighted attitude that has caused long respected companies to lose loyal customers who have bought their products for decades.

Yeah, it makes sense for the CEO and shareholders who will bail out in 2 years, but the company is completely screwed after those 2 years when the once loyal customers decide to shop elsewhere.

Would you rather rip me off for $50 right now and never see me again, or would you rather I give you $10 a week for the rest of my life?
How can you call such customers "loyal" if they leave over anything above rock-bottom prices? Or do you really mean "lazy" or "illogical" customers who knowingly pay more than they have to under some bizarre belief that the company will treat long-time customers better than brand-new customers?
myokitis

join:2004-06-19
Alexandria, VA


1 edit
said by benc See Profile :

Absolutely disgusting!
Wait a minute . . . where is it written that the price for a service must be proportional to it's cost?

In business-terminology it's called "value based pricing". It's where a business wants to be . . . would you rather be in the cellular business right now, or a commodity business, like the airlines where margins are so low and costs so high, they're forced to be closer to cost-based pricing?

Notevenclose

@bellsouth.net

Virtually nothing?

Um yeah..

I guess the tower leases are free,
the spectrum is free,
handset subsidies are free,
antennas are free,
cables running down the tower are free,
equipment at the base of the tower is free,
the T1s servicing the sites are free,
fuel for the backup generator is free,
electricity is free,
the cable to get your call back to the office is free,
the computers in the office to route your call are free,
the T1's to route your call back out are free,
all of the same equipment at the other site is free,
cell site techs work for free,
digital techs (works on the T1s) work for free,
office techs work for free,
vehicles for the field techs are free,
fuel for those vehicles is free,
tools are free,
training for the techs is free,
customer service reps work for free,
your bills are free to print,
postage for your bills is free,
payment processing centers are free.

There is a cost to build and operate this network and it is supported by charging for text messages.

B

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

Re: Virtually nothing?

All that stuff is paid for by the voice network. SMS is free.

Reck Havoc
Premium
join:2002-07-31
Grand Rapids, MI
Exactly, long list for nothing, your argument fails.

chevyrul0991

@ssa.gov

...

why would I charge you 20$ when I can get 200$ from you? Sure I may lose a few of you, but who cares...

good job cell companies. People will pay it, charge it. I dont mind paying 20$/month, I use the hell out of it.

Do I wish it was cheaper? Yah. Is it worth 20$ to me? Yah. Is it worth it to you? Well are you paying it?

james

join:2001-02-26
antarctica

Re: ...

said by chevyrul0991 :

Is it worth 20$ to me? Yah. Is it worth it to you? Well are you paying it?
We're also paying for you to use a government internet connection during work hours apparently, no wonder you're so happy to pay that $20 a month.
What does the Social Security Administration pay you anyways? I'm sure it's way more than you're worth, judging from how easily you part with your money. The rest of us do something called "work", instead of posting here from the office.

Reck Havoc
Premium
join:2002-07-31
Grand Rapids, MI

said by chevyrul0991 :

why would I charge you 20$ when I can get 200$ from you? Sure I may lose a few of you, but who cares...

good job cell companies. People will pay it, charge it. I dont mind paying 20$/month, I use the hell out of it.

Do I wish it was cheaper? Yah. Is it worth 20$ to me? Yah. Is it worth it to you? Well are you paying it?
What a douche, I hope someone reports your ip address to the SSA, your supposed to be working, not browsing the web.
gopnick

join:2005-01-07
Benton, AR
·Charter Pipeline
·AT&T DSL Service

ugh, not this again

People who complain about high SMS fees are normally the folks who pay for it. Stop paying for it, and they'll have to charge less to attract customers.

The other side of that are folks who don't use it, and, for some odd reason, don't want other folks to use it either. They're called fascists.

This has been a public service announcement from gopnick.

DataDoc
My avatar looks like me, if I was 2D.
Premium
join:2000-05-14
Greenville, NC
·Suddenlink

Re: ugh, not this again

said by gopnick See Profile :

People who complain about high SMS fees are normally the folks who pay for it. Stop paying for it, and they'll have to charge less to attract customers.

The other side of that are folks who don't use it, and, for some odd reason, don't want other folks to use it either. They're called fascists.

This has been a public service announcement from gopnick.
People that don't use it, but don't want others to use it are playing "dog in the manger."

djrobx

join:2000-05-31
Valencia, CA
·PHONE POWER
·AT&T U-Verse
·AT&T CallVantage
·Time Warner VOIP
·RoadRunner Cable

quote:
People who complain about high SMS fees are normally the folks who pay for it. Stop paying for it, and they'll have to charge less to attract customers.
The diabolical part of it is the social implications of not subscribing. No unlimited texts = antisocial cheapskate!
--
AT&T U-Hearse
Your funeral. Delivered.

ptrowski
Got Helix?
Premium
join:2005-03-14
Putnam, CT
clubs:

Re: ugh, not this again

Our company uses AIM to connect via offices etc and when you are offline they are sent to your phone via text messages.
keyboard5684

join:2001-08-01
Youngsville, PA
·Teliax VOIP
·WestPAnet Inc.
·WestPAnet Inc. CA..

And some of us have TEENAGERS!

WTF. Did you not get the bike you wanted when you where a kid?
Would it not suck to be the only kid in your class that did not have the ability to text?

Kids, the reason a lot of us have no money.
Also, the reason some of us pay crappy fees for stuff we do not want... because we want to make our children happy!
niblifar

join:2004-02-12
Ohio

Re: ugh, not this again

I didn't have a cellphone in high school, mind you this was recent as I'm not an old phogey. I like to think I turned out okay.
--
Vita est bona.
nolesch

join:2006-05-16
Paducah, KY

If you're stupid enough to pay a monthly fee for your kids to be cool, that's your deal. My bike was a one time coast, and well below what it would cost to text in a year. If my kids want to foot the bill, then they can have it. Otherwise, forget it. I incrementally teach them responsibility. Actually, we sit in the car in parking lots, and watch the rednecks yap it up on their cell phones and text, like they'd go into the shakes if they didn't have their cell fix, while buying their goods with food stamps.
gopnick

join:2005-01-07
Benton, AR
·Charter Pipeline
·AT&T DSL Service

I do have children.

The best way to teach your children to grow into adults instead of acting like children when they're 40 is to learn to say "NO!" It's tough, but it's better than having your 39 year old son living at home with you eating Cheetos all day long.
moonpuppy

join:2000-08-21
Glen Burnie, MD
·Verizon Online DSL

said by keyboard5684 See Profile :

And some of us have TEENAGERS!

WTF. Did you not get the bike you wanted when you where a kid?
Would it not suck to be the only kid in your class that did not have the ability to text?

Kids, the reason a lot of us have no money.
Also, the reason some of us pay crappy fees for stuff we do not want... because we want to make our children happy!
There is a difference between being your kid's friend and their parent.

Sometimes, you have to tell your kids no.

pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD

Shrug

If you find the margins on texting to be objectionable, then block it.
--
Blagojevich / Madoff 2012!
thevorpal

join:2007-11-16
Alexandria, VA

Re: Shrug

said by pnh102 See Profile :

If you find the margins on texting to be objectionable, then block it.
Except for the few of us that view it as ridiculous.

I average about 3 incoming text messages per month. I have never sent a single outgoing text message.

Of those three, 1-2 are typically sent by some fucking automated system that the guy who had this number before me signed up for.

I need to receive those single digit count messages, but getting charged for the ones that were sent to me in error is driving me nuts. I pay more for erroneous text messages than I do for the messages I receive.

So do I block it? No, that 1-2 I receive are typically very important.

Do I pay $5/month? No, I don't need that plan.

So I get stuck with the bill from a company that is trying to force me to pay for more than I need on a service that costs them nothing.

pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD
·Comcast

Re: Shrug

said by thevorpal See Profile :

So do I block it? No, that 1-2 I receive are typically very important.
If I was in that boat, then I would ensure that whoever feels the need to send me text messages pays for them. I refuse to pay for any texting (and have it blocked) because I am a cheapskate.

However, work felt the need for me to be textable... I had them get me a cell phone on their dime.
--
Blagojevich / Madoff 2012!
thevorpal

join:2007-11-16
Alexandria, VA

Re: Shrug

said by pnh102 See Profile :

said by thevorpal See Profile :

So do I block it? No, that 1-2 I receive are typically very important.
If I was in that boat, then I would ensure that whoever feels the need to send me text messages pays for them. I refuse to pay for any texting (and have it blocked) because I am a cheapskate.

However, work felt the need for me to be textable... I had them get me a cell phone on their dime.
The 1 to 2 I want come from my friends and relatives.

It's not those I have a problem paying for.

It's the other couple that I receive that come to me from strangers, and typically aren't intended for me in the first place, but I'm still expected to pay for them.

sNaKeYeZ
NES Geek
Premium
join:2002-07-11
Chunky, MS
clubs:

said by thevorpal See Profile :

Except for the few of us that view it as ridiculous.

I average about 3 incoming text messages per month. I have never sent a single outgoing text message.

Of those three, 1-2 are typically sent by some fucking automated system that the guy who had this number before me signed up for.

I need to receive those single digit count messages, but getting charged for the ones that were sent to me in error is driving me nuts. I pay more for erroneous text messages than I do for the messages I receive.

So do I block it? No, that 1-2 I receive are typically very important.

Do I pay $5/month? No, I don't need that plan.

So I get stuck with the bill from a company that is trying to force me to pay for more than I need on a service that costs them nothing.
+1

Paying on both ends for a text message should be against the law. I'm not going to buy an outrageously priced text message plan, but I do want to be able to receive the very limited text messages I need to receive. Why should it cost me to receive messages from people I don't even know?

unmpldngmjr

@suddenlink.net
Do you know what an "if, then" fallacy is? Well your post is one, look it up and write a 5 page report on why you should never use logical fallacies.

jmn1207
Premium
join:2000-07-19
Reston, VA

Re: Shrug

Pointing out logical fallacies in a comment always ruins the discussion. Er...wait...I meant...

JoeG4

join:2001-12-16
945941

Re: Shrug

I think everyone should get together and boycott phone companies.

jmn1207
Premium
join:2000-07-19
Reston, VA
·Verizon FIOS

Re: Shrug

said by JoeG4 See Profile :

I think everyone should get together and boycott phone companies.
Good idea, I'll be sure to call all of my friends and let them know.

pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD
·Comcast

said by unmpldngmjr :

Do you know what an "if, then" fallacy is? Well your post is one, look it up and write a 5 page report on why you should never use logical fallacies.
It is only a logical fallacy when the statement itself is indeed false. There are many ways one can protest being "ripped off" by paying for texts. Choosing not to pay for them is one of those ways.
--
Blagojevich / Madoff 2012!

jmn1207
Premium
join:2000-07-19
Reston, VA

Fantastic

It's such a lucrative service that surely it will create a ton of competition all clamoring to provide text messaging at a more affordable cost to the consumer. Oh yeah...

Deep Throat

@teksavvy.com

Re: Fantastic

With these kinds of margins, if I were a cell provider I'd eliminate voice service and offer only SMS

hayabusa3303
Over 200 mph
Premium
join:2005-06-29
clubs:

lol

And cell phone company's claim they are broke?

Transformers

join:2001-03-10
Sylmar, CA

Free outgoing texting with email

I a few months back I found out how to send free messages through email. Since I am around a CPU all day, this comes in handy. I save .20 cents each message. Hope you find it useful:

Verizon: 10digitphonenumber@vtext.com
AT&T: 10digitphonenumber@txt.att.net
AT&T (blue account): 10digitphonenumber@mmode.com
Sprint: 10digitphonenumber@messaging.sprintpcs.com
T-Mobile: 10digitphonenumber@tmomail.net
Nextel: 10digitphonenumber@messaging.nextel.com
Cingular: 10digitphonenumber@cingularme.com
Virgin Mobile: 10digitphonenumber@vmobl.com
Alltel: 10digitphonenumber@message.alltel.com
CellularOne: 10digitphonenumber@mobile.celloneusa.com
Omnipoint: 10digitphonenumber@omnipointpcs.com
Qwest: 10digitphonenumber@qwestmp.com
chronoss2009

join:2008-09-23
·TekSavvy Solutions..

im pretty sure that this whole article lies

when was the 1st text message sent via the internet, why at its creation in the 60's by its inventor not this noob scammer who wants to over charge us all and you idiots YES idiots pay for it and make them a killing and this is the reason they bring usage based billing cause morons page outrageous fees on cell use for those text messages.

RR Conductor
RailRoadDude
Premium
join:2002-04-02
Redwood Valley, CA
·Comcast

FYI

I'm sure many don't know this, but 1-way (receive only) SMS will work on Analog too, using NAMPS(Narrowband Advanced Mobile Phone Service). Not all networks installed this, but Contel and GTE(who went into Verizon) did here in Northwestern California, and allowed for SMS and Voice Mail Waiting Indicator on Analog. NAMPS splits the normal AMPS 30 Mhz channel into three 10 Mhz channels, and uses digital signaling. Anyway, just thought I'd throw that out
moonpuppy

join:2000-08-21
Glen Burnie, MD
·Verizon Online DSL

You have to give this guy credit

Friedhelm Hillebrand had a stroke of genius when he used the control channel to have the ability to send short messages from one phone to another phone.

How many of us would like to just send a short message instead of having to call someone. A short "on the way home" or "get milk" is sometimes all that needs to be said.

I like this guy because he didn't really have to rework an entire system but used what he had and made it work with relatively little effort.
BiggA

join:2005-11-23
EARTH

Genius

The invention of SMS through the control channel is genius... if it weren't for that SMS wouldn't be what it is today, because it wouldn't have existed until GPRS.

That being said, SMS is a rip-off, especially the pay per text. My theory is that because you use less minutes when you text (I don't really bother calling anymore, I just text), the carriers want to protect their revenue one way or another. There should be legislation that makes it illegal for carriers to charge for SMS on any plan that costs most than $20/mo.

SMS is not paying for the network, voice is.
Forums » Friedhelm Hillebrand, Father Of The Text Message


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