Karela Fry

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Should you pay at all for SMS?

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CNN called the cost of SMS the biggest rip-off in the USA:

Text messages are short, quick and cheap to transmit. So why are they adding so much to your wireless bill?

The messages are such a tiny piece of data that they cost carriers only about one-third of a cent to deliver, according to computer scientist Srinivasan Keshav, who testified before U.S. senators on the issue last summer.

But on a pay-per-text plan, the 160-character messages typically cost 20 cents outgoing and 10 cents incoming. That’s a markup of as much as 6,500%. OMG!

“It’s pretty much pure profit,” Keshav says. “Carriers would argue they put that money toward investing in new technology.”

Even if customers sign up for an unlimited texting plan for, say, $10 a month, carriers are still cashing in considering that their overhead is basically $0. That’s a lot to pay for a few LOLs.

Airtel gives you various broadband schemes, in various parts of the country, but one example is Rs. 98 for 1 Gigabyte. The size limit for SMS is 160 characters, ie, 1280 bytes. If this were charged at the same rate as broadband, you would have to pay 1 paisa for every 100 SMS!

What a ripoff.

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Written by Arhopala Bazaloides

July 10, 2011 at 10:34 am

Posted in dhandha, India

Tagged with ,

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