Two Senators are attempting to curb unsolicited text messages with a bill to strengthen government oversight of commercial texts.
Senators Olympia Snowe (R-Maine) and Bill Nelson (D-Fla.) on Thursday introduced the m-SPAM Act, which would strictly prohibit commercial text messages to wireless numbers listed on the Do Not Call registry. The bill would also give the Federal Communications Commission and Federal Trade Commission more authority to regulate unwanted text messages.
"Mobile spam invades both a consumer's cell phone and monthly bill," Snowe said in a statement. "There is also increasing concern that mobile spam will become more than just an annoyance--the viruses and malicious spyware that are often attached to traditional spam will most likely be more prevalent on wireless devices through m-spam. This significant and looming threat must be addressed in order to protect consumers and vital wireless services."
In 2007, U.S. consumers received approximately 1.1 billion text messages that they identified as "spam," according to Ferris Research. That number increased from previous years, but still represents a small portion of the text messages consumers receive. In the month of June 2007 alone, 28.8 billion text messages were reported, according to the CTIA.
As a result of the 2003 CAN-SPAM Act, the FCC adopted rules to prohibit sending unsolicited commercial e-mail messages to wireless devices without permission, but the ban does not cover SMS messages. Mobile spam has been reported as a means for phishing attacks, in which scammers try to prompt cell phone users into revealing their personal data over the phone.
The price of text messaging has doubled industry-wide in the last three years, and Congress wants to know why.
Sen Herb Kohl, chair of the Antitrust Subcommittee in the Senate Judiciary Committee, sent a letter Tuesday to the four major wireless carriers--AT&T, Verizon Wireless, Sprint, and T-Mobile--asking them to explain the dramatic price increases for text messaging services.
"Some industry experts contend that these increased rates do not appear to be justified by any increases in the costs associated with text messaging services, but may instead be a reflection of a decrease in competition, and an increase in market power, among your four companies," Kohl said in the letter.
The cost of text messaging since 2005 has increased 100 percent from 10 cents to 20 cents for all four providers. Mobile operators have reaped huge profits from the increased prices, CNET reported in July.
Also, the number of major carriers in the United States has shrunk from six to four in recent years, while the remaining carriers continue to acquire their regionally based competitors, Kohl said in the letter. He noted that the four carriers combined currently serve more than 90 percent of wireless subscribers in the U.S.
"I am concerned with whether this market consolidation, and increased market power by the major carriers, has contributed to this doubling of text messaging rates over the last three years," Kohl said.
The senator from Wisconsin asked the companies to provide evidence of how their respective text messaging pricing structures differs from those of their competitors, along with evidence of what factors led to price increases. He also asked the wireless carriers to provide data on the utilization of text messaging from 2005 to 2008 and a price comparison of text messaging services to other services such as Internet access over wireless devices. Kohl asked for a response by October 6.
The similar price increases, coming at similar times, Kohl said, "is hardly consistent with the vigorous price competition we hope to see in a competitive marketplace."
The Obama campaign promised us we'd be the first to know. Nearly a week later, we're still waiting.
(Credit: Declan McCullagh/CNET News)It sounded like a great idea at the time: Barack Obama announced that he'd announce his veep selection through text messaging.
A campaign e-mail message on August 12 promised: "Let me be very clear. You are the ones who built this campaign, and Barack wants you to be the first to know who will join him in leading our movement for change."
There were just two problems with that plan. First, the Obama campaign chose the traditional route of handing the news first to a favored reporter: Joe Biden's selection was first reported by CNN. Second, many messages never arrived (one of my colleagues is still waiting).
Keynote Systems on Thursday called it a "technical bellyflop."
Nearly 3 million people received the August 23 text message--sent out around 3 a.m. EDT--Nielsen reported earlier. However, Keynote estimates that 40 percent to 50 percent of people who signed up to receive the text either received it late or not at all. Keynote Systems measures and monitors e-business performance.
The estimate is based on 600 tests Keynote conducted across two major carrier networks on the Obama Campaign short code from August 13 to 22.
The late and failed texts demonstrate "the inadequacy of the SMS technical infrastructure to support large-scale marketing campaigns," said Shlomi Gian, director of mobile business development for Keynote.
Failing to deliver the text before the press announced it probably didn't help Obama's marketing campaign, either.
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