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Senate Explores High SMS Prices
Digging into the wireless carrier's cash cow
by Karl Bode Tuesday 16-Jun-2009
Tipped by Matt See Profile
In addition to exploring the anti-competitive ramifications of exclusive handset deals, Congress this week will also be holding a hearing on the high price of text messaging. SMS services cost carriers virtually nothing to provide, given the small amount of data (140 bytes max) piggybacks on secondary control channels within wireless transmissions that were going to be sent/received anyway. Representatives from AT&T, Verizon and Cricket will be "grilled" by Congress as to why prices for these services continue to skyrocket. Of course they're skyrocketing in part because consumers -- few of which know the related true costs -- are willing to pay for them.


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