Interesting People mailing list archives
You might be paying $1,000 per MB of SMS
From: David Farber <dave () farber net>
Date: Sun, 29 Jul 2007 16:34:32 -0400
Begin forwarded message: From: "David P. Reed" <dpreed () reed com> Date: July 29, 2007 3:00:24 PM EDT To: dave () farber net Cc: ip () v2 listbox com Subject: Re: [IP] You might be paying $1,000 per MB of SMSThe idea that the cost of operations of a network or the price of a network service is largely determined by the number of bits transmitted is widely assumed to be true. However, it is absolutely false.
The cost of an SMS at the implementation level largely consists of maintaining the HLR (home location registry) as users move around the network. It has very little to do with the number of bits transported.
And some careful thought about networks would suggest that the infrastructure cost is a fixed cost that can be allocated in a zillion ways, highly dependent on depreciation/amortization and on other assumptions. This is not amenable to a cost/bit notion of a "fair price".
David Farber wrote:
Begin forwarded message: From: Debi Jones <debi.jones () gmail com> Date: July 29, 2007 1:55:08 PM EDT To: dave () farber net Subject: You might be paying $1,000 per MB of SMS Reply-To: mojo () mobilejones comMost mobile phone subscribers love texting. And they love that it saves them money over making phone calls. Ten to twenty cents for a communique versus $.10 per minute for voice is seductive, indeed.But have you ever gone through an exercise to determine how much per MB SMS is costing you? This comparative cost exercise demonstrates why carriers/operators continue to receive the lion's share of their data revenue from SMS. At $600 - $1,000 per MB, what is standard margin for the telcos is a web company's wet dream.http://mobilejones.com/2007/07/27/you-might-be-paying-1000-per-mb- for-sms/for IP if you wish ...Debi Jones ------------------------------------------- Archives: http://v2.listbox.com/member/archive/247/=now RSS Feed: http://v2.listbox.com/member/archive/rss/247/ Powered by Listbox: http://www.listbox.com
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Current thread:
- You might be paying $1,000 per MB of SMS David Farber (Jul 29)
- <Possible follow-ups>
- You might be paying $1,000 per MB of SMS David Farber (Jul 29)
- Re: You might be paying $1,000 per MB of SMS David Farber (Jul 30)