Senate Anti-Trust Inquiry Into SMS Pricing

Discussion in 'Current Events' started by mkrishnan, Dec 28, 2008.

  1. Moderator emeritus

    mkrishnan

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    Grand Rapids, MI, USA
    #1
    http://www.nytimes.com/2008/12/28/business/28digi.html

    This analysis of the cost basis of providing SMS service was interesting also.

     
  2. macrumors 65816

    mcavjame

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    #2
    Yeah, I read that article this morning.

    You always know something is up when no one will talk to you and information cannot be made public.
     
  3. thread starter Moderator emeritus

    mkrishnan

    Joined:
    Jan 9, 2004
    Location:
    Grand Rapids, MI, USA
    #3
    Yeah, true. In the past, I've at least vaguely defended SMS pricing based on market economics and no data on what it costs to send them out. But this is very revealing. And while I guess there is some validity in the statement that per SMS pricing has gone down 50%, that's balanced by a lot of people like me who pay for a small SMS plan (400 for $4.99 or something like that) and use a small fraction (so I probably am paying on the order of $0.10-0.15 per SMS).

    There are some things I wonder, though. What happens when the volume of SMS actually gets so high that the control channel becomes frequently full at the desired time of use?
     
  4. macrumors 65816

    mcavjame

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    #4
    There is likely some throttle control that allows messages to be cached for short periods of time while a channel becomes clear. Given the size of messages, demand likely goes up and down very quickly.
     

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