AT&T Raising Rates: SMS Messages to Cost $1,500 Per MB

Tue Jan 29, 2008 1:26PM EST

See Comments (13)

I text so infrequently that I don't bother with an unlimited text messaging plan, so I just suck it up and shell out the 15 cents a pop whenever I need to jot off a note. But now comes news that my carrier, AT&T, is raising its rates again: 20 cents for an SMS and 30 cents for an MMS (whether you send or receive), leaving some to wonder if we aren't getting really rooked in the deal.

Gthing.net did the math: Turns out, we are. At 140 bytes per SMS (that's the maximum allowed) and 20 cents per message, doing some simple division gives you a truly crazy $1,498 per megabyte. And of course, it's double that if somebody actually responds to your message.

I understand that messaging has its own overhead issues and that it probably ought to be more expensive than standard data transfers, but SMS is now undergoing nothing less than runaway inflation. Cingular/AT&T just raised its SMS rates from 10 to 15 cents only one year ago, and here they jump again. The above bandwidth analogy isn't perfect, but it's illustrative and instructive of just how badly consumers are getting gouged on what is a basic and inexpensive service for the carriers to operate.

Oh, and AT&T isn't alone: Sprint's SMS rate is already 20 cents a message. Verizon and T-Mobile are both now at 15 cents a pop. How long until 20 cents becomes the new industry standard? Humbug, I say!

LINK: The True Cost of SMS Messages 

Comments on AT&T Raising Rates: SMS Messages to Cost $1,500 Per MB

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  • 1 Posted by jon655 on Tue Jan 29, 2008 2:16PM EST Report Abuse

    I used T-Mobile in the UK and texts cost me 3p (6c) each with no charge for incoming and no daily access fee. I selected a text biased plan (calls were 40c a minute, billed per second). $20.00 lasted me about 2 months and that was on a prepaid phone texting a lot. This is one area where the US is way more expensive (and behind on the tech.) than Europe.

  • 3 Posted by rogueist on Tue Jan 29, 2008 5:06PM EST Report Abuse

    Fired this info off to my congressional representative. Everyone should do the same thing.

  • 4 Posted by agustin2489 on Tue Jan 29, 2008 6:20PM EST Report Abuse

    Thinking realistically, would a person actually send a megabyte-worth of text messages before realizing he should add to his phone contract? I find this sort of news a tad bit inconsequential.

  • 5 Posted by nolo_8 on Tue Jan 29, 2008 9:13PM EST Report Abuse

    I cancelled my Verizon account with no Early Termination Fee. Its all in the contract, I maybe text about 10/month, but Im not paying a cent more to text.

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