Re: Cell-Phone Bills: Is Text-Messaging Too Expensive? - TIME

[David Farber <dave () farber net>]

Begin forwarded message:

From: Brett Glass <brett () lariat net>
Date: September 14, 2009 11:56:54 AM EDT
To: dave () farber net, "ip" <ip () v2 listbox com>
Subject: Re: [IP] Cell-Phone Bills: Is Text-Messaging Too Expensive? -  
TIME

At 01:50 PM 9/13/2009, David Farber wrote:

> Summing up, Keshav found that a text message doesn't cost providers  
> more than 0.3 cent."

This isn't accurate. The cost of building out, operating, and  
maintaining the cellular network is tremendous (and is inflated by  
problems such as overcharges by the ILECs for leased lines to connect  
the towers -- also known as "special access"). What's more, due to the  
advent of cut rate and unlimited calling plans (in which the carriers  
actually lose money on some voice customers), this cost can't be  
supported by voice service alone.

Without SMS charges, all of the major cellular carriers would lose  
money unless they substantially raised rates for other services.

--Brett Glass





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