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]
Fresh-Faced Recruit
Joined: Nov 1999
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.