Wednesday, March 7, 2012

SMS Texting - One of the biggest scams

Just FYI, phone SMS texting prices are such a huge scam. It's ridiculous. It makes me angry. I want to sue the phone companies for allowing such an oligopoly. Why else would they all be raising their prices for something that should cost almost nothing?

An SMS text message can store a max of 150 characters, and they're not even 8-bit characters, they're 7-bit. So that's about 1050 bits, or just about 1kb (132 Bytes) in total per full-length message. If the message is longer than 150 characters, it's just spliced into multiple messages and sent in sequence. Voice calls, on the other, hand use around 28kbps I'm estimating...that's per second when you're talking to someone!!! So if I talk for just ONE minute, I'm sending 1680kb, which is equivalent to sending about 1600 text messages... To bring things into perspective, if I paid the same rate to send data for voice calls as I did for texting, that would be a price of $40 per minute to talk with someone!!

Here's the calculation if you pay $5/month for 200 texts:

($5/200texts)*(1600texts/minute) = $40/minute

So why does SMS texting even cost ANYTHING? It should maybe be $5 per month maximum, for UNLIMITED texting, if not FREE. Furthermore, when you receive an SMS, you have no control over whether you want to receive it or not. Plus, both the sender AND recipient are automatically charged. I believe it's possible to block entire phone numbers from sending you texts, but that's the only method. In India and many other countries, recipients of SMS texts are not charged.

Wow, with the 4G network it looks like you can download at 50-60Mbps. That is INSANE, that's wifi speeds. That's comparable to 50,000 text messages per second. I can only imagine the speeds will get faster in the future. Also, if you have one of those internet plans, and you text through an Instant Messaging app like yahoo, MSN, Skype, Google Voice, etc., you're saving yourself tons of money, because then you're being charged a much cheaper data rate to send those "text messages".

MSN for years now has let me send SMS text messages for FREE from my computer to someone's phone. I just have to pay for my home internet connection.

Remember a few years back when texts messages cost 10 cents each, then 20, now 30? Why is it going up?

Also here's an article claiming the same thing:
http://www.college-startup.com/rants/oligopoly-a-rant-against-the-cellphone-industry/
but there's plenty more of this to be found online with a quick google search.
I highly recommend reading this link http://www.wired.com/epicenter/2010/06/wireless-oligopoly-is-smother-of-invention/ we continue to allow the wireless carriers to limit us.

/end_rant