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bobolito · 07-01-2008, 8:55 PM

The rising cost of texting

By Marguerite Reardon, CNET 1 hour, 10 minutes ago

If you thought gas prices were rising too quickly, check out what's been happening to text messaging.

Since 2005, rates to send and receive text messages on all four major carrier networks have doubled from 10 cents to 20 cents per message. This percentage of increase is on par with similar price hikes at the gas pump as crude oil prices skyrocket. In 2005, Americans paid on average about $2.27 per gallon for gas compared with more than $4 a gallon today.

Last October, Sprint Nextel was the first to introduce the new price of 20 cents per text message. AT&T and Verizon Wireless soon followed with their price hikes going into effect this spring. And this week Engadget reported that T-Mobile USA will match the other big three wireless operators in jacking up SMS texting rates to 20 cents per message. The price increase goes into effect August 29.

On Tuesday, AT&T announced that texting will cost new iPhone users more than it had previously. The old iPhone plan included 200 text messages in the $59.99 voice and data plan. But plans for the new iPhone 3G that hits store shelves next week will cost $5 extra for 200 text messages, bringing the total price of a comparable voice and data plan on the new iPhone 3G to $74.99 a month. (This is with the $69.99 "Nation 450" bundle plus $5 for the 200 text messages.)

The new wave of price hikes comes just one year after all the major carriers raised individual text messaging rates from 10 cents a message to 15 cents per message.

So what's with the 100 percent price hike in two years? Well, there's nothing that has changed in terms of the cost associated with delivering this service. In fact, text messages cost carriers very little to transmit. And when compared with what carriers charge for transmitting other data services, such as music downloads or surfing the Web, the text messaging rates seem exurbanite.

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 easily assume that the mark-up on a text message is several thousands times what it actually costs carriers to transmit this little bit of data, considering that mobile operators are only charging $30 to $40 a month extra for mobile data plans that offer 5MB worth of data per month.

The reason that carriers are charging so much for text messages is because they can. Even at 15 cents and 20 cents a pop, people are willing to pay for it. The carriers are also trying to get consumers to sign up for text messaging packages and unlimited plans that vary in price from $5 a month extra for 200 messages to $20 a month extra for unlimited texting on AT&T's network, for example.

The massive price markup on texting and the growing popularity of texting have resulted in huge profits for mobile operators. Verizon reported that for the first quarter of 2008, its wireless customers spent $11.94 a month on data services, an increase of about 33 percent from a year earlier. The carrier didn't break out what percentage was spent on text messaging versus other services, but there's a good guess that a lot of the additional revenue from data came from texting. In total, mobile data accounted for about 20 percent of all wireless sales for Verizon's first quarter.

Unfortunately, it doesn't look like consumers have much legal recourse for getting carriers to adjust their pricing to a more reasonable rate. There's nothing illegal about charging as much as the market will bear for any service.

But that doesn't mean that consumers like it. What do you think about the high-cost of texting? Are you feeling the pinch in your wallet yet? I'd love to hear your thoughts in the "Talk Back" section below.

The rising cost of texting - Yahoo! News

larry · 07-01-2008, 9:20 PM

Good thing I still have my grandfathered free unlimited text messaging!

KyleAndMelissa22 · 07-01-2008, 9:24 PM

Quote:

Originally Posted by bobolito

[size="3"]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.

Wow $6,000 per song. That means my entire MP3 collection is worth over $15,000,000!

I don't even use texting, because IMO, its a waste of time & money.
I'd rather talk 10,000 minutes per month like I already do.

SmArTeStChIlD421 · 07-01-2008, 10:54 PM

see im the exact opposite of you.....i love beig able to have multiple conversations at a time......but i still manage to talk 1000 minutes next to my 6000 texts

Nextel32708 · 07-01-2008, 11:02 PM

I love my $9.99 Unlimited Family Texting Package from T-Mobile (covers up to 5 lines)!

SmArTeStChIlD421 · 07-01-2008, 11:12 PM

$9.99 family texting???

KyleAndMelissa22 · 07-01-2008, 11:25 PM

It takes me over 200 seconds to type 160 characters, what a waste of time texting is for me, lol.

Anyway, I think coin-operated pay phones are a way better deal than pay-per use texting.

Only 25 cents for a whole minute!

Versus 20 cents for the equivilent of 10 seconds (which is 160 characters).

budney · 07-01-2008, 11:30 PM

And I thought I was doing good with my $20 unlimited family texting, $9.99 is awesome!

These higher texting rates got the best of my mom's boyfriend. He finally looked at his newest bill as it was really high, he had no texting plan when he thought he did.

vcmike · 07-02-2008, 1:13 AM

I guess if I used text messaging the increase would bother me. On the other hand I do drive, 17.35 gallons of regular set me back $67.13. I paid the bargain basement price of $3.87 a gallon. What a deal!

bobolito · 07-02-2008, 2:21 AM

It really depends on how you use text messaging. If you know how to use it, it can be quicker than placing a phone call. Suppose I arrive at someone's home to pick them up and I just want to notify them I'm waiting in the car. I just pick up the phone, select their name from the phonebook as if I was place a phonecall, select Send Message, type "I'm here" and press Send. All that takes about 10 seconds for me to do. If I was to place a phone call, just dialing and waiting for the network to connect and then for them to answer the phone takes longer than 10 seconds.

RadioRaiders · 07-02-2008, 2:28 AM

The rising price of text messages is a simple supply-and-demand issue. At the rate people have been SMS-ing the last few years, the limited supply of SMS's will soon be depleated. Some say we have allready used up half of the worlds supply of SMS, and that we have to look into alternative ways of communication, like MMS or e-mails. In the short term, companies like Nortel and Ericsson have comitted to increasing the output of SMS, but it will not really reduce the current costs and is not a long term solution. We must explore alternative means of communication for future generations to survive.

bobolito · 07-02-2008, 2:36 AM

LMAOL! ... sounds like a National Geographic documentary on oil supply.

KyleAndMelissa22 · 07-02-2008, 3:15 AM

Quote:

Originally Posted by RadioRaiders

The rising price of text messages is a simple supply-and-demand issue.
At the rate people have been SMS-ing the last few years, the limited supply of SMS's will soon be depleted.
Some say we have already used up half of the worlds supply of SMS,
and that we have to look into alternative ways of communication, like MMS or e-mails.
In the short term, companies like Nortel and Ericsson have committed to increasing the output of SMS,
but it will not really reduce the current costs and is not a long term solution.
We must explore alternative means of communication for future generations to survive.

Sounds like something I'd say! LOL

I've already found an alternative, talking on the phone so much

tmobileman · 07-02-2008, 4:01 AM

Raising SMS rates is just a way to generate revenue, it either forces you to pay outrageous overage or to accept the fact that you need to add a monthly recurring charge to your acct for a feature. Either way the company wins, but since I am with the company I am cool with this. Besides as an employee my plan cost me 9.99 and I get free data and unlimited messaging by the way the 9.99 fam messaging rate mentioned earlier for the tmobile customer that is a grandfathered feature, current rate is 19.95 for family plan customers, still a great deal.

viewfly · 07-02-2008, 9:03 AM

Quote:

Originally Posted by bobolito

The rising cost of texting

By Marguerite Reardon, CNET 1 hour, 10 minutes ago

Since 2005, rates to send and receive text messages on all four major carrier networks have doubled from 10 cents to 20 cents per message.

Ok, call me dumb, but I'm not getting the point here. Sure enough the per unit price of a text SMS is 20Cents per message, if you have no SMS plan.

But the price per message in a Text Plan has dropped significantly over the years. ATT plans are:

200 messages for $5.... 2.5 cents per message
1500 messages for $15..... 1 cent per message
Unlimited for $20... cheaper than dirt per message

And the unlimited family SMS plan $30 for a family of 4 (for example).... $7.5 per person and again cheaper than dirt. But say daughter Sally uses 1500, then that is equivalent to 1/2 cent per message.

Years ago, Text plans were much more per message than now. In fact I think an unlimited text plan was not even available. I would have to look it up from an old post of mine, but a similar calculation today would say if you send/receive more than 20 messages a month, get the $5 plan. I think years ago, the break even point was about the same. It's a pretty low threshold.

But here is an idea...Rollover for SMS's !!

Jay2TheRescue · 07-02-2008, 9:09 AM

Quote:

Originally Posted by tmobileman

Raising SMS rates is just a way to generate revenue, it either forces you to pay outrageous overage or to accept the fact that you need to add a monthly recurring charge to your acct for a feature. Either way the company wins, but since I am with the company I am cool with this. Besides as an employee my plan cost me 9.99 and I get free data and unlimited messaging by the way the 9.99 fam messaging rate mentioned earlier for the tmobile customer that is a grandfathered feature, current rate is 19.95 for family plan customers, still a great deal.

Just do what I do... Why pay for text when I have unlimited email/internet and M2M calling on the phone? Pretty much I just call someone. If I MUST send some type written message I will send an email from the phone. All of my friends know to either call or email me, and only text when there is no other option. I usually spend under $1/mo for texting on all of my lines.

-Jay

walkguru · 07-02-2008, 10:11 AM

Wirelessly posted (Walkguru's: Opera/9.50 (J2ME/MIDP; Opera Mini/4.1.11328/534; U; en))

thats why i got sero.

bobolito · 07-02-2008, 10:51 AM

Quote:

Originally Posted by viewfly

Years ago, Text plans were much more per message than now. In fact I think an unlimited text plan was not even available....[/b]

I guess you never noticed the $2.99/month unlimited text messaging plan that some carriers had 10 years ago. Comcast Metrophone (Philadelphia and NJ) offered this. You might also remember a plan Cingular had called "Media Works" that gave you unlimited data and 1500 SMS for $19.99. That was about 5 years ago. Now for the same price you only get 200 messages with the excuse that it also includes MMS. Also, you have to remember how AT&T Wireless had FREE unlimited incoming text messaging whether you had a messaging package or not. And also, Verizon only charged 2 cents for incoming SMS and 10 cents for outgoing SMS just a few years ago. Now it is 20 cents either in or out. T-Mobile just a few years ago had 500 messages for just $2.99. Today, T-Mobile charges $4.99 for 400 messages. Sprint, had unlimited messages for like $10. Now it's $20. Memory fades quickly, huh?

Either way, you get much less now than before. That's just indisputable.

Blue4Life · 07-02-2008, 11:11 AM

Wirelessly posted (Mozilla/5.0 (SymbianOS/9.1; U; en-us) AppleWebKit/413 (KHTML, like Gecko) Safari/413 es70)

I still have my old AT&T Wireless plan, which includes unlimited free incoming text messages. Since I still have an unlimited data plan, I send e-mail to the SMS e-mail address. It works for me. I find that receiving text messages is much less disruptive than phone calls if I'm at work, especially during meetings.

07-01-2008, 8:55 PM	#1 (permalink)
bobolito iPhone 3G 16GB (White) Join Date: May 2002 Location: New Sanfrakota Posts: 12,378 Phone(s): iPhone 3G, RAZR V9, Sierra 875 3G Aircard, HP iPaq Classic 110 Provider(s): AT&T Mobility Devices: WiFi cards/Access points Thanks: 3 Thanked 11 Times in 10 Posts Images: 50 My Auctions	The Rising Cost of Texting The rising cost of texting By Marguerite Reardon, CNET 1 hour, 10 minutes ago If you thought gas prices were rising too quickly, check out what's been happening to text messaging. Since 2005, rates to send and receive text messages on all four major carrier networks have doubled from 10 cents to 20 cents per message. This percentage of increase is on par with similar price hikes at the gas pump as crude oil prices skyrocket. In 2005, Americans paid on average about $2.27 per gallon for gas compared with more than $4 a gallon today. Last October, Sprint Nextel was the first to introduce the new price of 20 cents per text message. AT&T and Verizon Wireless soon followed with their price hikes going into effect this spring. And this week Engadget reported that T-Mobile USA will match the other big three wireless operators in jacking up SMS texting rates to 20 cents per message. The price increase goes into effect August 29. On Tuesday, AT&T announced that texting will cost new iPhone users more than it had previously. The old iPhone plan included 200 text messages in the $59.99 voice and data plan. But plans for the new iPhone 3G that hits store shelves next week will cost $5 extra for 200 text messages, bringing the total price of a comparable voice and data plan on the new iPhone 3G to $74.99 a month. (This is with the $69.99 "Nation 450" bundle plus $5 for the 200 text messages.) The new wave of price hikes comes just one year after all the major carriers raised individual text messaging rates from 10 cents a message to 15 cents per message. So what's with the 100 percent price hike in two years? Well, there's nothing that has changed in terms of the cost associated with delivering this service. In fact, text messages cost carriers very little to transmit. And when compared with what carriers charge for transmitting other data services, such as music downloads or surfing the Web, the text messaging rates seem exurbanite. 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 easily assume that the mark-up on a text message is several thousands times what it actually costs carriers to transmit this little bit of data, considering that mobile operators are only charging $30 to $40 a month extra for mobile data plans that offer 5MB worth of data per month. The reason that carriers are charging so much for text messages is because they can. Even at 15 cents and 20 cents a pop, people are willing to pay for it. The carriers are also trying to get consumers to sign up for text messaging packages and unlimited plans that vary in price from $5 a month extra for 200 messages to $20 a month extra for unlimited texting on AT&T's network, for example. The massive price markup on texting and the growing popularity of texting have resulted in huge profits for mobile operators. Verizon reported that for the first quarter of 2008, its wireless customers spent $11.94 a month on data services, an increase of about 33 percent from a year earlier. The carrier didn't break out what percentage was spent on text messaging versus other services, but there's a good guess that a lot of the additional revenue from data came from texting. In total, mobile data accounted for about 20 percent of all wireless sales for Verizon's first quarter. Unfortunately, it doesn't look like consumers have much legal recourse for getting carriers to adjust their pricing to a more reasonable rate. There's nothing illegal about charging as much as the market will bear for any service. But that doesn't mean that consumers like it. What do you think about the high-cost of texting? Are you feeling the pinch in your wallet yet? I'd love to hear your thoughts in the "Talk Back" section below. The rising cost of texting - Yahoo! News __________________

07-01-2008, 9:20 PM	#2 (permalink)
larry Go Angels! Join Date: Oct 2001 Location: Orange County, CA Posts: 12,869 Phone(s): LG Rumor Provider(s): Sprint Thanks: 11 Thanked 14 Times in 14 Posts Images: 146 My Auctions	Re: The Rising Cost of Texting Good thing I still have my grandfathered free unlimited text messaging!

07-01-2008, 10:54 PM	#4 (permalink)
SmArTeStChIlD421 Join Date: Jun 2006 Location: Reading, PA Posts: 3,639 Phone(s): Motorola RAZR V3m (Red) Provider(s): Sprint Thanks: 4 Thanked 2 Times in 2 Posts	Re: The Rising Cost of Texting see im the exact opposite of you.....i love beig able to have multiple conversations at a time......but i still manage to talk 1000 minutes next to my 6000 texts __________________ SERO F&F 500: 500 Flexible Anytime Minutes, UNLIMITED Nights and Weekends (7PM), UNLIMITED Mobile to Mobile, UNLIMITED Power Vision, UNLIMITED Messaging (Text/Picture/Video), Pick 3

07-01-2008, 11:02 PM	#5 (permalink)
Nextel32708 Junior Member Join Date: Apr 2008 Location: 32708 Posts: 67 Phone(s): Nokia 5190, Samsung Katalyst Provider(s): T-Mobile Thanks: 0 Thanked 4 Times in 2 Posts	Re: The Rising Cost of Texting I love my $9.99 Unlimited Family Texting Package from T-Mobile (covers up to 5 lines)!

07-01-2008, 11:12 PM	#6 (permalink)
SmArTeStChIlD421 Join Date: Jun 2006 Location: Reading, PA Posts: 3,639 Phone(s): Motorola RAZR V3m (Red) Provider(s): Sprint Thanks: 4 Thanked 2 Times in 2 Posts	Re: The Rising Cost of Texting $9.99 family texting???

07-01-2008, 11:25 PM	#7 (permalink)
KyleAndMelissa22 In LV Dec 3, In NJ Dec 10 Join Date: Feb 2007 Location: GAFFNEY, SC (FORMERLY NJ) Posts: 1,000 Phone(s): LG AX4270 Provider(s): ALLTEL - SID 114 (Near 116 Border). Devices: Grundig S350DL, Nikon CoolPix, PRO-89 Scanner Thanks: 27 Thanked 5 Times in 5 Posts Images: 247 My Auctions	Re: The Rising Cost of Texting It takes me over 200 seconds to type 160 characters, what a waste of time texting is for me, lol. Anyway, I think coin-operated pay phones are a way better deal than pay-per use texting. Only 25 cents for a whole minute! Versus 20 cents for the equivilent of 10 seconds (which is 160 characters). __________________ CDMA....Coming Soon To A Tower Near You! Alltel User Since September 2006 - Now I'm Good Until August 2010 !!!

07-01-2008, 11:30 PM	#8 (permalink)
budney Resident Headbanger Join Date: Jan 2003 Location: Tardville Posts: 4,435 Phone(s): Katana II, HTC Vogue (Touch), Moto Q Provider(s): Sprint Devices: 30GB Zune & 1GB Zen Stone Thanks: 1 Thanked 2 Times in 2 Posts Images: 14 My Auctions	Re: The Rising Cost of Texting And I thought I was doing good with my $20 unlimited family texting, $9.99 is awesome! These higher texting rates got the best of my mom's boyfriend. He finally looked at his newest bill as it was really high, he had no texting plan when he thought he did. __________________ Thanks Sprint for turning on EV in Bullhead & Laughlin, just hurry it up with Ft. Mohave!!!

07-02-2008, 1:13 AM	#9 (permalink)
vcmike Fresh Member Join Date: Feb 2008 Location: Valencia County, NM Posts: 23 Phone(s): Nokia 6101, Nokia 6010, Nokia 6030 Provider(s): T-Mobile Devices: Amateur Radio Transceiver(s) Thanks: 0 Thanked 0 Times in 0 Posts	Re: The Rising Cost of Texting I guess if I used text messaging the increase would bother me. On the other hand I do drive, 17.35 gallons of regular set me back $67.13. I paid the bargain basement price of $3.87 a gallon. What a deal!

07-02-2008, 2:21 AM	#10 (permalink)
bobolito iPhone 3G 16GB (White) Join Date: May 2002 Location: New Sanfrakota Posts: 12,378 Phone(s): iPhone 3G, RAZR V9, Sierra 875 3G Aircard, HP iPaq Classic 110 Provider(s): AT&T Mobility Devices: WiFi cards/Access points Thanks: 3 Thanked 11 Times in 10 Posts Images: 50 My Auctions	Re: The Rising Cost of Texting It really depends on how you use text messaging. If you know how to use it, it can be quicker than placing a phone call. Suppose I arrive at someone's home to pick them up and I just want to notify them I'm waiting in the car. I just pick up the phone, select their name from the phonebook as if I was place a phonecall, select Send Message, type "I'm here" and press Send. All that takes about 10 seconds for me to do. If I was to place a phone call, just dialing and waiting for the network to connect and then for them to answer the phone takes longer than 10 seconds. __________________

07-02-2008, 2:28 AM	#11 (permalink)
RadioRaiders Now with bronze flavor Join Date: Apr 2007 Location: Undisclosed Posts: 903 Provider(s): GSM / WCDMA Thanks: 2 Thanked 9 Times in 5 Posts	Re: The Rising Cost of Texting The rising price of text messages is a simple supply-and-demand issue. At the rate people have been SMS-ing the last few years, the limited supply of SMS's will soon be depleated. Some say we have allready used up half of the worlds supply of SMS, and that we have to look into alternative ways of communication, like MMS or e-mails. In the short term, companies like Nortel and Ericsson have comitted to increasing the output of SMS, but it will not really reduce the current costs and is not a long term solution. We must explore alternative means of communication for future generations to survive. __________________ Learn more about communications. Visit Radio Raiders

07-02-2008, 2:36 AM	#12 (permalink)
bobolito iPhone 3G 16GB (White) Join Date: May 2002 Location: New Sanfrakota Posts: 12,378 Phone(s): iPhone 3G, RAZR V9, Sierra 875 3G Aircard, HP iPaq Classic 110 Provider(s): AT&T Mobility Devices: WiFi cards/Access points Thanks: 3 Thanked 11 Times in 10 Posts Images: 50 My Auctions	Re: The Rising Cost of Texting LMAOL! ... sounds like a National Geographic documentary on oil supply. __________________

07-02-2008, 4:01 AM	#14 (permalink)
tmobileman Iphone Hater Join Date: Apr 2008 Location: idaho Posts: 390 Phone(s): Tmobile HTC Dash, BB Pearl, Razor V3t, Moto ROKR E8 Provider(s): Tmobile Devices: Linksys WRTU54G Router, Moto H500 BT Headset Thanks: 9 Thanked 11 Times in 11 Posts	Re: The Rising Cost of Texting Raising SMS rates is just a way to generate revenue, it either forces you to pay outrageous overage or to accept the fact that you need to add a monthly recurring charge to your acct for a feature. Either way the company wins, but since I am with the company I am cool with this. Besides as an employee my plan cost me 9.99 and I get free data and unlimited messaging by the way the 9.99 fam messaging rate mentioned earlier for the tmobile customer that is a grandfathered feature, current rate is 19.95 for family plan customers, still a great deal.

07-02-2008, 10:11 AM	#17 (permalink)
walkguru Wireless Guru Join Date: Dec 2005 Location: Oklahoma Posts: 6,069 Phone(s): nokia 6682, nokia 6230, moto,v600, moto,v551 Provider(s): cingular,family plan w/4 lines Devices: m3000,hs810, Sirius,sportster,w/boombox, Thanks: 10 Thanked 1 Time in 1 Post Images: 28 My Auctions	Wirelessly posted (Walkguru's: Opera/9.50 (J2ME/MIDP; Opera Mini/4.1.11328/534; U; en)) thats why i got sero. __________________ http://www.speedtest.net/result/90674468.png Men sleep peacefully in their beds at night, because rough men stand ready to do violence on their behalf ~George Orwell

07-02-2008, 11:11 AM	#19 (permalink)
Blue4Life Join Date: Dec 2006 Location: Lehigh Valley, PA Posts: 566 Phone(s): PDA2K, Treo 600, SX56, Nokia E71,E70,6800,6030, 6010,3595,3300,3120, Motorola V300, V635 Provider(s): AT&T Blue, T-Mobile (prepaid) Devices: Nokia LD-3W, BH-801, Motorola DC800 Thanks: 3 Thanked 15 Times in 10 Posts	Wirelessly posted (Mozilla/5.0 (SymbianOS/9.1; U; en-us) AppleWebKit/413 (KHTML, like Gecko) Safari/413 es70) I still have my old AT&T Wireless plan, which includes unlimited free incoming text messages. Since I still have an unlimited data plan, I send e-mail to the SMS e-mail address. It works for me. I find that receiving text messages is much less disruptive than phone calls if I'm at work, especially during meetings.

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