Sunday, October 3, 2010

Astronomical Text Message Margins

According to a story in the Chicago Tribune, outgoing 160-character text messages on a cell phone typically costs users 20 cents, while it only costs carriers three-tenths of a cent to process. That's a 6,000% profit.

SMS (short message service) texts are limited to 160 characters because they, in effect, piggyback on a secondary data channel necessary to coordinate voice communications. Even if you're paying 10 cents per text, that's nothing to LOL about.

"Six hundred text messages contain less data than one minute of a phone call," testified Consumers Union policy analyst Joel Kelsey at a hearing before Congress. If text data rates applied, he said, a brief cell conversation would cost customers $120.


See full article from WalletPop: http://srph.it/cSvYOz

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