Posted on 12/30/2008 7:18:42 AM PST by Joiseydude
In the past few years, people seem to have forgone the conventional phone conversation in favor of punching in short text messages on tiny keypads, all while mobile phone carriers have cashed in lucratively.
In 2008, 2.5 trillion messages were sent from cell phones worldwide, up 32 percent from the year before, according to the Gartner Group. But, what also went up in the last three years was the price — doubling from 10 to 20 cents per message while the industry consolidated from six major carriers to four.
Sensing a potential rip-off, Wisconsin Sen. Herb Kohl, the chairman of the Senate antitrust subcommittee, began to take a closer look at the doubling of prices American carriers were charging customers.
Kohl soon discovered that text messages are essentially very small files, costing carriers close to nothing to transmit.
(Excerpt) Read more at foxnews.com ...
Can you say “Bottled Water” ????
Most phone stuff costs the carrier basically nothing, all the way back to when Ma Bell ruled the world.
Sounds like competition in the free market is the answer.
So what should the price be, Herb? And while you’re at it, what should the price of cell phone service be? I think the average American would be happy if you mandated that all cell phone bills be set at $20 per month for unlimited calls and text messages. Get “the rich” to pay for it.
I’m so glad Congress has the big problems solved and can devote attention to this little crap.
Here’s a devilishly simple solution. If you don’t like the price they charge for the service then don’t use it.
Sorry, that should be if "one" doesn't like the service then one shouldn't use it. Sloppy use of the language there. I don't want you to think I meant you personally.
I agree that we should let the market take care of it. I also think cell phones are a good example of a monopoly. There is very little real competition in that industry.
Of course, once you have built the multi-trillion dollar communications infrastructure, the marginal/incremental cost of a unit of production is infinitesimally small, but the fixed cost of that infrastructure is still there and needs to be serviced and/or rewarded.
The phone companies took the risk of investing their money in the infrastructure, and get to charge what the market will bear.
If you're not willing to pay their price, don't use their service.
I read this article and ended up thinking “so what?” The same people who argue for a “proportional response” in Gaza argue for a “proportional response” in terms of some “golden ratio” they can approve of in terms of how much a text msg costs vs how much it costs the telco. It doesn’t work that way, Bunky. It’s nobody’s business what a text message costs a carrier. You don’t like it, don’t use it, or, make your teenage daughter pay for her own damn phone.
"hi hows it goin
fine
cu soon
ok lol"
I luv how modurn edukashun has learnt us so good to spoke so intellugents to everbuddy.
Since all cell phone companies overcharge for texting, acting as if it’s expensive for them to process, it’s collusion, and illegal.
Other than server time, bandwidth, storage, computer support, user support, upgrades, virus protection, and all of the other things that are associated with a computer network.
True, the cost is incremental - Verizon is not building an enirely new network just for texting - but there still are significant costs.
Using this same logic, once you have electricity in your house, it shouldn't cost anything extra to use it, right? Everything else is "incremental". Same with phone, gas, water, cable, internet, etc etc etc.
Geez, politicians are idiots.
I agree with you there.
Hey, how much did the FIRST text message cost? Billions, eh? WHat kind of deal did you get on that one?
I think the argument is that there may be price fixing, hence no free market.
LOL, don’t worry about it, it takes allot more to get under my skin.
Exactly right, and that’s just what I did. After my Daughter run up an extra $50 on my cell bill one month for text messaging, I called and cancelled the text service.
Problem solved.
Do you remember how expensive the first cell plans were? Trust me, the companies got their money back on their investment.
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