RSST-Mobile is the last of the big four to hike SMS to 20 cents
By Michael Hatamoto | Published July 1, 2008, 3:15 PM
Deutsche Telekom division T-Mobile has joined its main competitors in the United States with a bump in text messaging fees from $0.15 up to $0.20, more than a year after a price hike from $0.10 to $0.15.
Customers looking to opt out of their subscriber contract with T-Mobile will likely be able to use this SMS increase as a legitimate excuse. Although T-Mobile representatives over the phone may tell you it's not allowed, some reports including this from independent service BerryReview.com suggest a price increase could be perceived as a material breach of contract. As a result, subscribers may be able to opt out without paying an early termination fee.
Some of those opt-outs could head straight to AT&T, now that users have a target date for the Apple iPhone 3G model on the horizon.
The increased prices will go into effect on August 29.
Verizon Wireless, AT&T and Sprint also bumped up their SMS charges to $0.20 per message, both sent and received, over the past few months. Sprint increased prices last October, with Verizon increasing text messaging prices up to $0.20 in March.
The number of minutes included in a phone plan is rapidly diminishing in importance to customers, while data used -- such as text messages sent and received -- is what prospective subscribers are coming to rely upon as their gauge of relative value. Price increases for SMS may be intended to get subscribers to sign up for bulk messaging plans, while also raking in additional money from the growing popularity of text messages.
For example, T-Mobile has a $4.99 per month text plan that includes 400 domestic messages sent and received, with a $9.99 plan for 1,000 messages, and $14.99 for unlimited domestic messages. Verizon, AT&T, and Sprint also have similar text message plans.
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|Now I for one do like Tmobile and have been very happy with the, What is INSANE is that Tmobile considers Instant Messaging Text Messaging. I had the 400 messages plan. data plan as well and was using yahoo messenger to talk to a friend. I got a $40 bill for using instant messenger.
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|If you log on to T-Zones and select the appropriate IM option from there you have unlimited IM at no extra charge. The SMS charges only apply if you use the built in IM software on your phone.
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|And here I was waiting for texting to become standard included in price. Silly me :P
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|That's just insane. I read a while back when the average price of text was $0.10, it yielded a profit margin of around 90%. Double that, crazy.
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|Sad. Last thing we actually need is higher prices for SMS. As noted in other places, 1MB of SMS >= $1000 USD right now. That's just insane and really not worth it, especially because US customers are charged for both send AND receive.
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|What is insane is that people use SMS instead of their voices - all of these carriers have enough minutes that, unless you plan on dictating a book each month, you can do an adequate amount of talking without any messages needing to be sent. Besides, it's like using the telegraph, after the invention of the phone.
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|Or e-mail after video conferencing.
Wait.... :p
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|SMSing is not insane. It is practical, non-obtrusive means of communication. The cost per SMS for the telecos is virutally zero for incoming and depends on bargaining for outgoing (but also minimal).
This artificial monopolistic price fixing will not last for long!
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