Everyone knows that movie popcorn is one of the biggest ripoffs, right? It turns out that movie popcorn carries a 600 percent markup. The biggest ripoff: text message beats movie popcorn article tells that the text messaging has a much bigger markup. Text messages themselves, are just tiny blips of data being transferred to and from mobile devices and don’t even cost the carriers a full penny to process. So with text message an operator gets a 6,500 percent markup from 20-cent message. This number only considered the text message delivery cost. It could be possible (and very probable) that charging for text message service costs considerably more than the service itself.
But don’t expect anything to change anytime soon because operators are making good money on this as people are buying the product well at the current pricing. Those of us who pay for flat-rate, all-you-can-text plans don’t worry about cost of single text message.
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Free Texts Pose Threat to Carriers
http://www.nytimes.com/2011/10/10/technology/paying-to-text-is-becoming-passe-companies-fret.html?_r=1&pagewanted=all
At a time when e-mail and many other forms of electronic communication are essentially free, wireless carriers are still charging as much as 20 cents to send a text message to a phone, and another 20 cents to receive it.
Paying so much to transmit a handful of words is starting to look as antiquated as buying stamps.
This highly profitable product was something of a happy accident for cellphone carriers.
There are now a growing number of ways to bypass text-message charges using an Internet connection
“It always comes down to the economics,” said Greg Woock, the chief executive of Pinger. “Free is a compelling price point.”
“From a business perspective, customers still need a data plan to connect to a device,” Ms. Raney said. “They are only making choices on how they are using the data.”
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Text Messaging Is in Decline in Some Countries
http://bits.blogs.nytimes.com/2012/01/01/text-messaging-is-in-decline-in-some-countries/
Perhaps to the chagrin of cellphone carriers, all signs point to text messaging’s continuing its decline in several parts of the world.
In Finland, there was a significant drop on Christmas Eve, one of the busiest days of the year for texting, Tero Kuittinen, a senior analyst at M.G.I. Research, wrote in a blog post for Forbes.
Cellphone customers on Sonera, a Finnish mobile network, sent 8.5 million text messages on Christmas Eve, down from 10.9 million on the same day the previous year, Mr. Kuittinen said, citing a report by the Finnish national broadcasting service. DNA, a Finnish carrier for younger customers, also experienced a decline, with subscribers sending 5.6 million messages, down from 5.9 million in 2010.
In Hong Kong there was a steep decline in text messaging on Christmas Day
Australians, too, sent fewer text messages
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