Verizon Considers Upping The Cost Of Text Messages

By Davie Barret
15:58, October 11th 2008
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Verizon Considers Upping The Cost Of Text Messages

Recently there has been some talk about a possible cost increase for text messages terminated on Verizon Wireless network. The increase, charging 3 cents per message, is due to happen starting November 1st, 2008, according to a letter received by OpenMarket and made public by RCR Wireless News.

OpenMarket is a direct to consumer service that sends text messages with alerts from companies such as Google or Orbitz. The main worries regarding this possible move issued by Verizon are that such a cost increase would terminate services like ChaCha and will discourage companies to send text messages informing clients upon different topics.

The cost increase of text messaging wouldn’t allow companies to get back their investments in this service and as the basic idea of running a company is strongly related to profit, the change might discourage many companies from continuing to send text alerts to cell phones. On the other hand, Verizon spoke through Jeffrey Nelson claiming that the price was not finalized and that the change is just a draft concerning the increased volume of text messaging reported to last year’s use of the service. The wireless industry association claims that 75 billion messages were sent in June 2008, meaning that there has been an increase of approximately 160% of the numbers registered in 2007.

Some say that even with the incredible increase in the use of the service, higher costs are not justified as sending texts messages, no matter how many, costs carriers very little due to the fact that cell phones are permanently connected to cell towers. Verizon announced that this information wasn’t supposed to go public and that there is nothing certain regarding this increase of costs.

 



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