The Thought Refuse

A Virtual Repository for the Mind

Telecommunication Companies Gouging Via Text Message

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When Comcast announced it’s plan to begin instituting a bandwidth cap, the tech community was in general consensus that bandwidth limits was not consumer friendly, and sparked considerable outrage from some consumers.  But there’s something else that should infuriate you about your data much more then how much your allowed to use every month.  Namely, how much your paying for what kind of data you send and receive.

Our data works on an astronomic pay tier, and to illustrate this lets do a little math.

Your average home internet bill is probably around $50.00 a month.  If your a Comcast customer your allotted 250 GB per month for your monthly payment.  Your paying Comcast $0.20 for every GB of data.  That equates to you paying paying $0.0000019 per kB of data transferred.

Telecommunications companies like AT&T and Sprint charge $0.10 for each text message sent and received.  The average text message data size is 10kB.  1 GB holds 1,048,576 kB.  104,857 text messages would consume 1 GB of memory.  At an average cost of $0.10 per text message, you are paying $1,048,570 per GB of text messages.

There’s a 524,285,000% cost increase from wired data to wireless text message data.  Show me another industry where you’ll encounter this sort of price increase for the same product?  Now, it’s understandable that wireless data infrastructure requires more investment then a wired infrastructure, but to this degree?

Wireless telecommunications companies are gouging it’s customers for text message data transmissions, and you rarely hear any outcry from consumer advocacy groups much less government officials.  What’s even more perplexing is that while our wired data limits are being restricted, our wireless data transmissions via text messaging continues to explode according to a CTIA report.

Regardless of the fact that text messages account for a minuscule proportion of the data we send and receive, it’s absolutely unethical for this kind of tier pricing for data to exist.


Written by huxbux

September 26, 2008 at 5:32 pm

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