Why do text message rates keep going up?

Get our top stories

follow gawker

Why do text message rates keep going up?

Text message rates have doubled since 2005, from about 10 cents each to 20 cents today. Senator Herb Kohl (D.-Wisc.), who chairs the Senate's antitrust subcommittee, has asked Verizon, AT&T, Sprint Nextel and T-Mobile to explain it to him. "It does not appear to be justified by rising costs in delivering text messages," the letter says. "Text-messaging files are very small, as the size of text messages are generally limited to 160 characters per message, and therefore cost carriers very little to transmit." Kohl's suspicion: The four big carriers have increased their prices nearly in sync, suggesting a collusion to wring more money out of the market rather than to compete against one another. Read the whole thing — it's no Series of Tubes. (Photo via Gizmodo)

Contact Paul Boutin:
Discussions
Discussion now closed.
Follow Nextel on Gawker
Tomorrow's News
More Stories…