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Text Messages Cost Next to Nothing...to Phone Companies

Category: Mobile
Posted: January 6, 2009 07:08PM
Author: ClayMeow

Text messages used to cost five to ten cents apiece, but over the last few years, the four major U.S. wireless carriers raised it to 20 cents apiece. If you pay for an unlimited texting plan, you're probably paying anywhere from $15-20 per month. But how much is it costing the carriers? Practically nothing. Most of the costs originated from hardware and infrastructure investments, but all that occurred years ago, even before the price increase, and even then, the cost was minimal. The operating costs are even less. According to a computer science professor, "It doesn't cost the carrier much more to transmit a hundred million messages than a million." There's not much way around it for now, but the 20 price-fixing lawsuits alleging that the carriers are illegally colluding to set text messaging prices artificially high could change things.



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malmsteenisgod on January 6, 2009 07:27PM
The prices they charge really are outrageous. They even charge extra for international messages. I hope these phone companies get what's coming to them.
gebraset on January 6, 2009 07:36PM
Seriously, malmsteenisgod is right. I'm over here paying for unlimited texting which is costing me an extra twenty per month. I really do hope they get fined like crazy and get banned from charging so much for text messages. Spending this much just to text people is just annoying to the extreme.

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