Cell-Phone Bills: Is Text-Messaging Too Expensive? - TIME

[Dave Farber <dave () farber net>]

Begin forwarded message:

> From: Andrew C Burnette <acb () acb net>
> Date: September 16, 2009 17:09:05 EDT
> To: David Farber <dave () farber net>, brett () lariat net
> Subject: Re: [IP] Re:  Cell-Phone Bills: Is Text-Messaging Too  
> Expensive? - TIME

> Dave,
>
> For IP if you wish.
>
> I might disagree a good bit. well, 160 bytes to be exact. SMS is
> leftover space from the SS7 signaling protocol (thus the 160 character
> limit when texting between carriers) that has simply been co'opted for
> additional monetization. It would be today's equivalent of re-using  
> the
> exp bits in IPv6 headers for small set data.
>
> What costs carriers "too much" are the numerous (and inefficient) T1's
> required to service cell sites. As we move to 4G and fiber to the  
> tower
> (mixed up with femto's and point to point wireless between towers) the
> cost should come down a good bit. Brett has the same high bandwidth  
> cost
> issues in his WISP.
>
> The "exclusive" nature of handsets, deals, and software among each of
> the US carriers is hardly economical. Buy a handset in the EU, and
> you'll see the exact same handset in nearly every wireless provider's
> store. Compete on services and tailored bundles, not forcing handset
> manufacturers to limit their market, or design/support yet another 90%
> identical handset for wireles carrier A, B and C....
>
> It's vicious, and for lack of a better term, somewhat artificial in  
> nature.
>
> Best regards,
> Andy Burnette
>
> David Farber wrote:
> > Begin forwarded message:
> >
> > From: Brett Glass <brett () lariat net>
> > Date: September 14, 2009 11:56:54 AM EDT
> > To: dave () farber net, "ip" <ip () v2 listbox com>
> > Subject: Re: [IP] Cell-Phone Bills: Is Text-Messaging Too  
> > Expensive? - TIME
> >
> > At 01:50 PM 9/13/2009, David Farber wrote:
> >
> > > Summing up, Keshav found that a text message doesn't cost providers
> > > more than 0.3 cent."
> >
> > This isn't accurate. The cost of building out, operating, and
> > maintaining the cellular network is tremendous (and is inflated by
> > problems such as overcharges by the ILECs for leased lines to connect
> > the towers -- also known as "special access"). What's more, due to  
> > the
> > advent of cut rate and unlimited calling plans (in which the carriers
> > actually lose money on some voice customers), this cost can't be
> > supported by voice service alone.
> >
> > Without SMS charges, all of the major cellular carriers would lose  
> > money
> > unless they substantially raised rates for other services.
> >
> > --Brett Glass
> >
> >
> >
> >
> >
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