The Real Cost of SMS

Knowlton Thomas, Techvibes:

Texting your friend “Hey, what’s up, Joe?” costs a wireless carrier roughly 1/1,000 of a penny. That is to say, sending roughly 1,000 text messages should cost, at wholesale pricing, about a single cent. If you send a lot of lengthier texts, it might round up to two cents. The number crunching at this point is simple: unless you’re sending 500,000 text messages per month, your wireless carrier is profiting. Most people send under 1,000, and many send less than 100—all the while paying $5.00 per month.

As one of my G+ connections mentioned: “And that is why I’m always on Whatsapp now.”

So many of my friends are on Whatsapp-capable smartphones that when I actually have to use SMS because one of them isn’t “with it”, it feels almost weird. And with iMessage coming with iOS 5, there’ll be even less reason to use SMS. Mark my words — it will soon be the case (if it isn’t already) that when people mention SMS, they’ll get smirks and funny looks.

“Really? SMS? How quaint.”

[Source]

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2 thoughts on “The Real Cost of SMS

  1. @jadesimian with carriers their cost structure is mostly fixed and not variable. The pricing an SMS at wholesale of 0.001c is not an accurate reflection in my opinion. In fact telcos have very little idea how to price their services according to cost – they just go by what the market is willing to pay for the service

    • Is your statement based on what you know about Aussie telcos?

      And whether or not it’s an accurate reflection or whether telcos know how much to charge, it still stands that SMS charges are higher than what it actually costs the carriers.

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