Price gouging on text messaging

Text Messaging in Court

Once one understands that a text message travels wirelessly as a stowaway within a control channel, one sees the carriers’ pricing plans in an entirely new light. The most profitable plan for the carriers will be the one that collects the most revenue from the customer: unlimited messaging, for which AT&T and Sprint charge $20 a month and T-Mobile, $15.

Customers with unlimited plans, like diners bringing a healthy appetite to an all-you-can-eat cafeteria, might think they’re getting the best out of the arrangement. But the carriers, unlike the cafeteria owners, can provide unlimited quantities of “food” at virtually no cost to themselves — so long as it is served in bite-sized portions.

I don’t know about you, but I don’t particularly want to pay $20/month for text messaging when you can get unlimited access to the internet from your phone for $20/month. How does that line up? I want to be involved in some of these class action suits… must find.

via Digital Domain – What Carriers Aren’t Eager to Tell You About Texting – NYTimes.com.

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One Response to “Price gouging on text messaging”

  1. Skip Howard Says:
    December 30th, 2008 at 10:54 am

    Peter, read this:

    http://www.forbes.com/cionetwork/2008/12/17/validas-cellphone-bills-tech-cio-cx_tp_1217validas.html?feed=rss_popstories

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