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SMS doesn't go through the data connection. You could have no GPRS, EDGE or 3G and still send text messages (as long as you still have phone service). It's a totally different protocol than instant messaging over a data connection. Also, text messages can go to just about any mobile phone.
 
Some guys in a suit decide, lets make some extra money off this. My first cell phone was a pepaid on voicestream in 2002. I paid $50 for 250 minutes, but didnt pay for text, even international text. As many as I wanted.

Honestly that doesn't sound too amazing. At ATT's lowest minuet rate it's 40$ for 450 minutes, maybe when you count in the extra 20$ for unlimited texing you're saving 10$ on your old plan.
 
Honestly that doesn't sound too amazing. At ATT's lowest minuet rate it's 40$ for 450 minutes, maybe when you count in the extra 20$ for unlimited texing you're saving 10$ on your old plan.

That was prepaid, at that point in time prepaid was very expensive, not like now. Text messaging went from 10c, 15c and now 20c per message. Technology is supposed to get cheaper as more and more people use it, not the other way around.

Back then nobody was texting and it was free on voicestream.
 
Personally I think the reason texting on a one-off basis costs so much because so few people really only send a few texts a month. Most consumers have unlimited or very high texts for $10-$20/month, so the few that pay per text are drowned out or encouraged to just pay the flat rate, which looks "cheap" by comparison.

And because, until recently, there was very little information about what it actually cost companies to provide text messages. Text messages offer an interesting glimpse into what the future of the cell service industry will look like and how they can adapt. They've been marketing themselves based on offering more and more minutes when people talk less and less, year over year, on their phones. So while they now started offering unlimited talk time plans, that doesn't actually target the needs of many customers.

I think you could make just as good an argument that it is not the text messaging charge that has become ridiculous but the talk-time charge. Most of us on post-paid plans are paying something, typically, like $30-50 for talk time, $20-30 for data, and $5-15 for text messaging. Of the three, we probably use data the most and SMS next, or vice versa. But of the three, the SMS charge is the lowest, and we're really being overcharged for the talk time we don't use anymore.

I agree 100% with that...based entirely on my store of rollover minutes I am way overpaying for the phone time I use, but I am already on the lowest possible plan (450 minutes/month).
 
I think they still charge us for incoming texts, which is kinda like the mailman coming by with junk mail and not leaving until you give him 42 cents per piece of mail that you may or may not have wanted. AWESOME!

Ya they do, its pretty ridiculous. Cause i remember back in 2000-2001, each text message cost 10 cents, and it wasnt that big back then. Then when it started to get bigger, carriers raised the price from 10 cents to 15 cents. Then just in 2007, they raised it agian to 20 cents PER text including incoming texts that you cant even control. Though i do text alot myself in class, prices are just getting ridiculous. They want us to pay 20 bucks for unlimited text, crazy!
 
Texting in general is more popular outside of the US, of course.

I agree with everything you said in your original post except this. Texting wasn't popular before, but now its extremely widespread, especially in teens. I don't know how popular it is in the UK, but I think you might be underestimating it in the US. But don't take my work for it, because I haven't done any research. Just saying... :cool:

EDIT: Just did some research. Link.
 
I agree 100% with that...based entirely on my store of rollover minutes I am way overpaying for the phone time I use, but I am already on the lowest possible plan (450 minutes/month).

My situation is moderately ridiculous in this way too... I pay for:

$40 - airtime, 1000 min + wknds
$20 - EDGE and Wifi Hotspots
$5 - SMS - 400 I think
$5 - fees, surcharges, and taxes

I used something like 130 minutes of prime airtime, 106MB of data services (T-Mobile added this summary back on their bills this month!), and 130 SMS last month.

But on the other hand, there's not much of an option for me to pay even less than this and still get GSM service. Some of the smaller MVNO's have $50 "prepaid" monthly packages that give unlimited time, SMS, and data, which would be $15-20 cheaper, depending on whether the $50 includes taxes and fees, but they are CDMA (and I'd lose the WiFi, which I do occasionally use). I don't think there's much of an opportunity to get GSM and a set of services better suited to my usage for a lower price...
 
Ya they do, its pretty ridiculous. Cause i remember back in 2000-2001, each text message cost 10 cents, and it wasnt that big back then. Then when it started to get bigger, carriers raised the price from 10 cents to 15 cents. Then just in 2007, they raised it agian to 20 cents PER text including incoming texts that you cant even control. Though i do text alot myself in class, prices are just getting ridiculous. They want us to pay 20 bucks for unlimited text, crazy!

I can't imagine adding another £20 to my bill for unlimited SMS. There is no justification for text message price increase. It shoul be getting cheaper.
 
Because cell phone companies like to make you take it the rear.

These companies are in cahoots together because it's mutually beneficial to charge for texting. Once one carrier decides to dump it others will follow suite but it's never going to happen.

They probably all have lunch together and LAFF LAFF LAFF it up.

I wish for a day for any phone on any network, then we'd have some progress.
 
Because cell phone companies like to make you take it the rear.

These companies are in cahoots together because it's mutually beneficial to charge for texting. Once one carrier decides to dump it others will follow suite but it's never going to happen.

They probably all have lunch together and LAFF LAFF LAFF it up.

I wish for a day for any phone on any network, then we'd have some progress.

My iPhone Nano comes with unlimited text and copy and paste!! :D

On the real tho: Cricket comes with unlimited calls, texting and data for $40 a month. Their coverage isn't great and their phone selection sucks but it's still a little bit of progress from one company.
 
Isn't a text message just a small amount of data that is transferred using the same technology that is used when you call someone? If that's the case, then it can't possibly cost ATT $10 to transfer a few text messages every month. So shouldn't text messaging just be included in your voice plan? :confused:

Ask ATT.

:rolleyes:
 
Wow, you guys have it bad. With my prepaid plan I pay a minimum of 15€ each month, and it includes 1500 free texts every week for people in my carrier. For everyone else I pay 0.06€ per text, and we don't pay for incoming texts.
 
This thread is proof of the appalling lack of economic education in the US. It also explains why 53% voted the way they did. Ignorance. Talk about sheep.

What it costs a company to produce a product defines the minimum price they have to charge in order not to lose money on each sale.

The selling price is set at whatever someone else is willing to pay for an item.

ATT doesn't force anyone to send text messages or buy a text message plan. If you don't like the price, don't use the service.
 
Wow, you guys have it bad. With my prepaid plan I pay a minimum of 15€ each month, and it includes 1500 free texts every week for people in my carrier. For everyone else I pay 0.06€ per text, and we don't pay for incoming texts.

If I could ask it in another way, what do you actually pay, altogether, per month, for voice, data, and SMS services, through your prepaid account? You work (if I'm not mistaken?) in the industry -- I thought you were talking about selling iPhones or iPod touches in another thread -- and so I'm presuming that whatever deal you have is on the more lucrative end of Portugese deals, so I was wondering....
 
If I could ask it in another way, what do you actually pay, altogether, per month, for voice, data, and SMS services, through your prepaid account? You work (if I'm not mistaken?) in the industry -- I thought you were talking about selling iPhones or iPod touches in another thread -- and so I'm presuming that whatever deal you have is on the more lucrative end of Portugese deals, so I was wondering....

What other thread? I don't sell iPhones or iPod Touches... :confused:
This is a regular plan.

I pay between 20€ to 25€ for everything. 10€ to 15€ for voice and texts and 9.90€ for the data plan (which isn't required but I decided to add anyway).
 
It would seem like we get good deals in Hong Kong...

for around $70 per month. Some subsidize for the iPhone, Unlimited Data, 2200 Call Minutes, 1500 for "H2H" Call Minutes, 200 "3" Web Content Points which is very good, Each Point can be exchanged for a game, video and other Multi-Media.

Finally... We get Unlimited Text! Even the $30 Plan! In fact, Unlimited Text, 500MB... Pretty much the best plan!

But in all seriousness - Texting is expensive, but it's ridiculous how people expect it to be free!
 
What other thread? I don't sell iPhones or iPod Touches... :confused:
This is a regular plan.

I pay between 20€ to 25€ for everything. 10€ to 15€ for voice and texts and 9.90€ for the data plan (which isn't required but I decided to add anyway).

Maybe I have you confused with someone else, sorry (edit: or perhaps not... whatever it was you were talking about promoting). So that's about $35 USD for all the services, including your VAT or whatever form your fees take? That is somewhat lower than typically paid in the US. Although I'm less sure it'd be lower as a percentage of typical post-tax monthly income.
 
Isn't a text message just a small amount of data that is transferred using the same technology that is used when you call someone? If that's the case, then it can't possibly cost ATT $10 to transfer a few text messages every month. So shouldn't text messaging just be included in your voice plan? :confused:

It likely costs ATT maybe $1,000 to transfer all the text messages for an entire region!

Short Answer as to why they charge crazy amount of money: They are greedy SOBs.

Long Answer: They are greedy SOBs and congress is in their pocket.


Something we all NEED to read:
Professor Keshav said that once a carrier invests in the centralized storage equipment — storing a terabyte now costs only $100 and is dropping — and the staff to maintain it, its costs are basically covered. “Operating costs are relatively insensitive to volume,” he said. “It doesn’t cost the carrier much more to transmit a hundred million messages than a million.”

Read more and become shocked!
 
so by your logic, nothing that has been exploited to provide pure profits is valid for sale? :rolleyes:

Yes. As any capitalist will tell you the collusion of carriers is preventing a fair market value to take place. That's why we have anti-trust laws in the U.S....

Sorry for the double. Just being Lazy.
 
"Why do we have to pay extra for texting?"

Cause in real life we MUST pay for EVERYTHING!!

No seriously, if it can be charged... it will :/
 
The actual reason is that people are willing to pay that much. If texting was actually overpriced, nobody would pay for it..like video calling.

That assumes we have a free market with national service -- cell phone services has too many barriers to entry (spectrum?). SMS was originally free, then as it gained popularity, the carriers jacked up the price.

Video calling isn't used because few phones support it (I can SMS with nearly any phone), the quality is awful, and no large group of people have ever used it (it didn't start free).
 
This thread is proof of the appalling lack of economic education in the US. It also explains why 53% voted the way they did. Ignorance. Talk about sheep.

What it costs a company to produce a product defines the minimum price they have to charge in order not to lose money on each sale.

The selling price is set at whatever someone else is willing to pay for an item.

ATT doesn't force anyone to send text messages or buy a text message plan. If you don't like the price, don't use the service.

What's up with people bringing politics into things that have nothing to do with politics. Nobody cares that you dislike Obama and think he's a socialist. Even though if I were a socialist I would never claim Barack as the same. Nobody cares about your skewed view of what "AMERICAN" is whatever that is. Because you know Canada, and Mexico are "American" too or did your narrow minded arrogant ignorance of the world and continent allow you to forget that. What you mean is 46% voted uniformed and so did the other 53%.What you also meant was they voted U.S.A Keep your tired political ideology and lazy partisan politics to appropriate forums.
 
Professor Keshav said that once a carrier invests in the centralized storage equipment — storing a terabyte now costs only $100 and is dropping — and the staff to maintain it, its costs are basically covered.

When many of the messaging systems were built up around 2003, a terabyte cost over $2,000. The cost of support employees per center is probably over a quarter million a year. The buildings themselves also cost large amounts.

However, if you're carrying billions of messages, that's pretty good compensation (unless most are from people with unlimited plans).

“Operating costs are relatively insensitive to volume,” he said. “It doesn’t cost the carrier much more to transmit a hundred million messages than a million.”

No. If a message takes six seconds to be carried when the traffic count is one million within a set time period, it'll take 10 minutes if the traffic is a hundred million. At the least, they have to install much more bandwidth, and that means more equipment.

The control channel isn't "free" either, as he claims. True, it's usually doing nothing. That is free. But when it's being used as the endpoint for a whole chain of control signals, it's not.

Personally, I wish texts were dirt cheap. I also think arguments should have merit.
 
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