US Senate wants answers on soaring text rates
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The chair of the Antitrust Subcommittee in the Senate Judiciary Committee has written to the four largest US network operators demanding they explain why the cost of texting has doubled since 2005.
Text messages have been a nice little earner for European operators since cross-network connectivity became available, but txt is still a growing market in the US, and one on which American operators have been slow to capitalise - though the fact that texting rates have doubled from 10 cents to 20 cents since 2005 shows they're catching up fast.
The concern of Senator Herb Kohl is that all four networks seem to have increased their prices at roughly the same rate, and as the industry has seen consolidation reduces competition.
"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.
AT&T, Verizon Wireless, Sprint, and T-Mobile have until 6 October to explain why the cost of texting has risen so much, and to demonstrate how they differentiate their pricing to ensure competition. ®
COMMENTS
US SMS
Kevin Kitts - nice posting but I think you got a bit carried away with :
"Then war will come, and the last Dark Age will fall on humanity. The US may not be the shiniest city on the hill, but we're the only one left that cares more about people than wealth. When that changes, it's over. For everyone. Mark my words."
really - the only only one left that cares more about people than wealth - that's why kids can go to school in the US but there is no free healthcare for all children?
You are also too optimistic, the Republicans will win... I've worked in Dallas, the state is controlled by old rich white people who play bridge and all go to the same methodist church. They will put such fear into the public that Obama will be seen to be entirely unelectable. In the land of the free, a few powerful, wealthy people run the roost.
SMS was an engineering add-on when GSM was being developed. Now, it's essential - us oldies (>40) may not get why... Remember being a teenager - how hard was it to ask a girl out. Although a voice call may be more economical, a text is easier to send when asking if someone wants to go on a date. Twitter and the like have increased the near instantaneous, simple messaging impact.
I never knew that in the US people had to pay to both send AND receive texts. Best of luck to the senators, until they are "lobbied" and this problem goes away.
@ Anon Cow
" Take a break and go read the constitution again. Free markets regulate themselves"
In a perfect world, free markets regulate themselves. Unfortunately, it's not a perfect world.
@Kevin Kitts
Kevin, you are THE BOMB, my man. Look at how the media is still jumping through the hoops that teh GOP gave them. Look at how McCain can take an insult aimed at him (lipstick on a pig), and turn it around to mock outrage that his frozen bimbo has been slighted, and most of the media moos and goes placidly along with it. I hope that they go after every one of these bastards after the dems get in (if the votes are counted this time), and throws them the hell in jail.
Anonymous because I work for a defense contractor. Black helis because we make black helis.
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