This year in America, 3.2 Trillion Text (SMS) Messages were sent. That is not that surprising I guess, this past month I sent about a hundred myself.
Maybe you didn't notice, but about 3 years ago, the cost of a single pay per use text message rose from 10 cents to 20 cents. At the same time the number of major U.S. wireless carriers shrank from 6 to 4.
To most of us, it probably doesn't even matter; we have text plans built into our wireless plans.
Irregardless, it is important to know that the sheer volume increase over the last five years has meant that the amount of money the companies are receiving has dramatically increased.
Now you'll probably say, "well, they should receive more money, they have to carry more messages."
Doesn't that mean they have to pay for more cell phone bandwidth (very expensive) and for all that data storage?
NO...
In a very interesting article in the NY Times, the author revealed that Text messages are so small in file size (the 160 word rule), that they can be sent over a special wave. The same wave that is used for your cell phone to find and connect to the tower signal. Therefore, the companies are paying for no extra width and the small file size is nothing when you consider that a terabyte of storage is now down to around 100 dollars.
We are being fleeced by the cell phone companies. In reality, it costs them about the same to send 1 million text messages as it would to send 1 billion. Yet all the while they are charging more and more for the service.
The question is, where is all that money going.
In a shocking move, Congress is actually taking action, and are doing an inquiry into the telephone companies which will require them to publish the revenue of those units.
Wow.. Congress.. Being effective.
Well, we will hold our breath for the moment and see what happens.
For tonight, I am at the beach. And would like to wake up at a decent hour tomorrow, unlike last night.. lol.
Tuesday, December 30, 2008
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