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Verizon intros 3-cent text fee for content vendors

updated 04:20 pm EDT, Fri October 10, 2008

Verizon adds text fee

Verizon on Wednesday sent out a memo to its partners to inform them it will charge an extra fee of three cents for every mobile terminated text message they send to Verizon subscribers beginning on November 1st. Such messages include text alerts, interactive voting notifications and replies to SMS searches that include anything from sports score updates to daily horoscopes. Excluded from the new fee are messages sent from non-profit organizations, including Mobile Giving messages and messages that are absolutely free to the subscriber.

According to Verizon, the new fee reflects the provider's need to cover its expenses in delivering MT messages. The decision is expected to spur similar moves from other carriers, as they look to pass on the cost from complaining subscribers to other companies.

The high costs of text messaging has even spurred Democratic Senator and Antitrust Committee head Herb Kohl to send a letter last month to the four major providers, asking them to justify what he believes are exorbitant SMS fees. [via RCR]








By Electronista Staff
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  1. Guest

    Fresh-Faced Recruit

    Joined: Nov 1999

    +1

    this is funny

    because, in terms of amount of profit per bytes of data transferred, SMS messages are so wildly profitable for all the carriers, if you text a lot, the carriers would rather give you more free voice minutes than free SMS messages.

    If users knew how badly the carriers gouge for SMS messages, there would be incredible pressure for congressional hearings into why the FCC and the FTC have done nothing about, particularly with the carriers RAISING prices for consumers.

  1. testudo

    Forum Regular

    Joined: Aug 2001

    +1

    wow

    Is this how you treat your partners? Just imagine what Verizon would charge others,,,,

  1. bjojade

    Fresh-Faced Recruit

    Joined: Jun 2007

    0

    Texting = profit

    It costs next to nothing to send a text. The amount of data in one minute of voice calls is equal to that of about a thousand text messages.

    It's just that they have conditioned user to pay extreme amounts for the pleasure of text messaging.

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