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Newsflash: SMS text messages way too expensive

Posted by Dan Moren | Tuesday, May 20, 2008 2:59 PM PT

Text MessagingOn the many, many, many lists we’ve compiled of missing iPhone features, the lack of Instant Messaging has consistently been towards the top. Among the theories (conspiracy or otherwise) behind the lack of IM on the iPhone is the suggestion that IM would cut too much into AT&T’s revenue from text messaging: while the provider includes 200 text messages in all the iPhone plans, extra messages sent or received cost a subscriber anywhere between five and twenty cents.

Of course, that can add up, as parents of frequent text-messaging kids have quickly learned, especially for messages that are limited to 160 characters—marginally longer than your average Twitter thought. In fact, as Dr Nigel Bannister of the University of Leicester recently concluded, sending SMS messages in his home country of the UK costs roughly four times as much as data sent back from the Hubble telescope.

So it doesn’t seem very surprising that here in the US, a class action lawsuit has been leveled at seven major mobile providers—Verizon, Sprint, AT&T, Alltel, US Cellular, Cellular South, and Virgin Mobile—about the price of text messages. While the specific focus of this suit appears to be on unsolicited text messages that subscribers receive (and are charged for), there may be implications beyond that.

Personally, we think the Mississippi federal judge who ends up with this on their docket should take a look at Dr. Bannister’s findings. Or at least let us send text messages to outer space.

Comments (1)

I know this does not concern the us market. But I do agree that you guys tend to pay a little too much for you text messages.
I live in Sweden and we have a population around 9 million people. Still we have offers from telecom companies that are much lower than you guys pay.
I pay around $6 a month and get unlimited text messaging to all the operators. Calling isn't that expensive either.

Philip
May 21, 2008
8:17 AM PT

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