Version: 2008

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Comments on: The rising cost of texting

Text message prices have risen as quickly as gas prices at the pump over the past two years. What gives?

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by McPlot July 2, 2008 5:15 AM PDT
I don't text. I do have an unlimited data plan an use a program called Fling to access all the major IM's out there and IM for free using my phone. I prefer to leave Texting to teenage girls.
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by fsumedia July 2, 2008 5:22 AM PDT
Granted the carriers charge for what the market is willing to pay, but once again corporate greed jacks prices.
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by Sporkicus July 2, 2008 5:34 AM PDT
If you have an iPhone, or any other phone that has email capabilities... All you have to do is tell people to send texts to your email... There you go, it's free on your end to send and recieve!
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by CaelestisFilius July 2, 2008 5:59 AM PDT
...unless they're, AT&T, increasing the cost of the Nation 450 plan too, I only pay $40 a month for it.
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by sjwileman July 2, 2008 6:35 AM PDT
Don't talk to me about gas prices! You want to try living in the UK. Current exchange rate means that a typical gallon of petrol (gas) is $10.40.
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by whtvrrob July 2, 2008 7:04 AM PDT
I pay $30 a month for Blackberry data (up to 5GB) my family also pays $30 a month for unlimited texting. These two amounts are the same, so one might assume you could transmit the same amount of data with each. To get the same amount of data in a text as you would 5Gb of surfing, you would have to send 35.7 Million texts per month, that averages to 13 messages per second, each with 160 characters I might add. This would be impossible for any "teenybopper". @mikekrause I will add, I pay for my data and 20 a month of family's texting.

RH
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by chef65536 July 2, 2008 7:29 AM PDT
Its amusing how many comments there are along the lines of:

"I'm old, and my failure to embrace/understand the advantages/convenience/culture of texting as it becomes prevalent in our society is something I take pride in."

The fact that people have the ability to send each other inane messages on a whim is not some sign of weakness of character. Text messaging allows such communications, where once they would have been unwieldy. Certain 'overhead' aspects of phone calls, such as waiting for the callee to allow initiation of the communication, the need for a greeting, the inevitable inclusion of subjects extraneous to the caller's desired message (in cases when there is a definite desired message), and the need for a 'goodbye' exchange make phone calls unacceptable for the constant flow of ideas in an impromptu manner.

Certainly some people may text unnecessarily, but now like never before they have the technology to exchange ideas as they arise. Just as a call is ideal for communications which are expected to take several minutes or longer (because in such cases the 'overhead' is justifiable), text messages are ideal for short, sporadic communications.

Returning to the topic of the article, per-message prices for text messaging are certainly outrageously expensive, considering the provider's cost to send the message. For anyone who sends a very small number of texts, the price may not be too much of a problem. For anyone who sends a lot of them (I, for example, send I would say at least 50 a day), unlimited plans seem reasonably priced for the services that are provided.
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by the_owl July 2, 2008 7:32 AM PDT
What about the European carriers? I've heard (but am not sure) that they do not charge extra for sending text messages. My initial impression is that the US carriers charge extra for texting because it is a popular service. For various reasons, many people prefer sending a text over calling someone.
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by WallyEG July 2, 2008 7:40 AM PDT
I just renewed my Tmobile plan for my family. Felt SMS costs were out of line, so I dropped them all together. New phone is a blackberry curve and I have google talk on it - and I do pay $20 for unlimited internet. So why would I need SMS texts?
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by myfigurefemale July 2, 2008 7:49 AM PDT
The only thing that annoys me about texting plans is that I have to pay for one in addition to a data plan...if i already have a data plan, why do I have to also pay extra for texting? But as someone who sent 900 text messages last month, $10 more a month is worth it so I don't have to worry about overages. Everyone my age sends me texts (while at work or school) so now I'm not paying extra for the privilege. It actually allows me to cut down on my cell phone minutes, which do cost more. ($40 for 450 minutes). Of course, I paid $5 for this same plan 2 years ago, but the service is still worth it to me. And also, agreed about the instinct user bashing the IPhone, I have unlimited data, texting, (and multimedia messages!), 450 minutes (w/ unlimited mobile to mobile), insurance on my phone (so it's only $50 to replace if lost/stolen/broken) all for $96/mo. Seems like a lot better deal to me than paying $300 for a phone with plans that still cost more!
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by fs1011 July 2, 2008 8:55 AM PDT
Easy answer... CUT off this service... 20 cents for receiving and sending??? what the hell is this??? In Europe we only pay to send and free for receiving (including voice calls)
And what some of you might not realize, is that drop calls... Well, I never had one in Europe... you can make clear calls anywhere anytime... ATT is terrible and overpriced!!! Cellular service in the US is 10 years being the rest of the world!!!
ATT : get your coverage fixed for voice calls!!!!!!!!!!!!!!!!!!!!! P.S. The "fewest dropped call" slogan is not something to be prouid of....
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by FS1982! July 2, 2008 8:59 AM PDT
I like text messaging for a variety of reasons (mobile instant messaging) but the new AT&T rate plan for the new iPhone is going to prevent me from getting the iPhone 3g. I have the first generation iPhone and am fine with paying an extra $200 for the 3g phone (which I do think is worth the value) but then an extra $360 over the next two years to a carrier that I don't think is particularly that good (and doesn't know how to make money in another way besides raising prices). Granted they did update their 3G system which they will need to recover cost but issues just like this text messaging article...please. I would rather they just add $5 calling it a 3G utility fee than increasing the text fee. Kind of funny how the supply and demand pricing structure works in the case of text messaging. High demand and unlimited supply = price increase...awesome. I do believe in the masses have more power than corporations so I for one will try and change my ways to use something other than text message. Then the question will be Low demand and unlimited supply = price increase??? decrease??? At that point I'm sure they would change it to a "3G Fee".
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by agbertoni July 2, 2008 12:26 PM PDT
I've said it before and I'll say it again...

SWITCH TO HELIO!!!

For $65 a month you get 500 minutes, unlimited nights and weekends, and unlimited Data (which included internet at 3G speeds, unlimited txting and unlimited picture/video messaging).

I'm a cheap SOB, trust me when I say this is by far the BEST deal out there. PLUS... you can buy a Helio Ocean on eBay for like $89 (that might have went down since I got mine).
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by mhollis--2008 July 2, 2008 12:28 PM PDT
I have an iPhone. I have sent about five text messages with it and probably won't send too many more than that in any six-month period. This is proof that competition in the marketplace works in reverse, too.

But there is a way around all of this. The iPhone and other phones can get around the whole SMS network by either using Edge or the 3G network for instant messages. Yahoo has clients for many phones and the iPhone can use the web-based service presently (I imagine the App Store will have a native application soon). I have also used Google's Instant Messaging service with my iPhone.

As soon as the phone carriers see SMS not being used, they'll lower the prices.

Oh, and how to keep the daughter from running up a huge SMS bill?

Give her a budget for cell phone usages to use any way she wishes and make her responsible for paying the bill. Believe me, after the first month she goes over her budget, she'll stop texting people just to text them.
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by fdunn3 July 2, 2008 1:28 PM PDT
I had AT&T long ago disable any services other than voice.

It's a freakin' phone! Texting is for the birds, you can get more done via voice in the same amount of time even if you have to conference in others.

I don't have a data plan on my phone. If I want a data plan it will be for an ultra laptop where I can send REAL email and even videocall if needed and bandwidth available.

The only SMS messages I get are from AT&T's service and they don't cost me anything.

But are the wireless companies ripping SMS texters off...YOU BET! they will nickel and dime you to death unless you get an unlimited plan.
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by Kage_No_Oni July 2, 2008 1:47 PM PDT
Well, none of this bothers me. My Boost Mobile plan right now says I get Unlimited calling, text, and web for $63/month. I got locked into one of the older plans than the new 50/60/70 they are trying to pull now.

Besides, if it ever came to be a problem and I had to switch, I'd run mobile web and use AIM to message phone numbers all day.
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by chris_d July 2, 2008 5:58 PM PDT
Why they're doing it:
Simple... the more they raise the rates, the more people will end up subscribing to text messaging plans. They're driving their customers like a herd of cattle. The companies would much prefer guaranteed $10-$20 per month revenue. I'm sure some people subscribe to a text plan even though they'd spend less if they didn't.

Even though people occasionally send me text messages (I tell them not to... and I'm going to start hitting them up $.20 for every one they send me), I've never actually had more than $2 in one month. Since I don't do texting, it makes no sense for me to subscribe to a plan, when I've never had over $2 per month and many months I have $0. 00 in text charges. If I get spam, they hear about it and I get them to take it off. It does really anger me that they charge for incoming when it costs them nothing. It's quite a rip-off. I'm sure they'll get to $1 per text message if you don't have a text plan. Just give the sheisters another year or two.
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by flinx999 July 2, 2008 9:37 PM PDT
All you folks that are slaves to your phones and "plans" are fools.... drop those greedy mainstream bas%^&*rds and go with pre-paid! I have a phone for each one of the members of my family and give them a $25 allowance every 4 months. It teaches them discipline and ends up costing me SOOO much less. If they use up their minutes - they pay out of their own pocket.
BTW.. texting is .08 per message.... I have nationwide coverage and all my minutes roll-over. Been using PagePlus for 2 years now! European carriers are 60% prepaid plans!
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by Giff Gfroerer i2SMS July 3, 2008 7:15 AM PDT
In the states I continue to be baffled by the carriers decision making in raising rates on SMS. As research out of Australia and Switzerland has repeatedly pointed out, texting is addictive. Therefore, what the carriers should be doing is hooking us first and then raising rates. Take a look at the cable industry. When cable was first offered in the homes, it was offered at $7.99 to $9.99. The cable operators hooked us all and then they raised rates...to today around $75.00 a month.

However, on SMS, the carriers have raised rates before they have hooked the consumer. The carriers should be running special promotions and dropping rates to get the non-users on board. Instead, they choose to raise rates, thus inhibiting those not already users from trying the service or texting more.

I, for one, do not understand this mentality. Why would someone pay for a package deal when they rarely text to begin with? The carriers need to hook the consumer first, and then raise rates and push to the packages. They are doing this process backwards...
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by Amyaz July 3, 2008 10:27 AM PDT
great timely story! i just added the 200 texts per month to my at&t plan after i had to pay $20 for texting. wish they'd warned me about the increase.

it's too bad texting isn't included in the data plan on the new iphone. would have been a good way for me to justify the $30 extra for the data plan (and to sign on for a new 2 year agreement).
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