16 Comments

Summary:

In a move that could impact text messaging offerings like tweets, bank alerts and sports scores, T-Mobile USA is planning to charge an additional toll to businesses to send texts. The charges could begin on Oct. 1 and cost a quarter of a penny per text.

toll image

In a move that could impact text messaging offerings like tweets, bank alerts and sports scores, T-Mobile USA is planning to charge an additional toll to businesses that send texts over its network. Beginning Oct. 1, the carrier reportedly will charge a toll of one-quarter of one cent to businesses for every SMS delivered to its customers. That’s right, the Twitters of the world could soon have to pay to send your texts.

The move mirrors a similar — but much more costly — effort from Verizon Wireless two years ago. In 2008, Verizon told its business partners it would begin charging three cents per text alert, but abandoned the plan after tremendous backlash from text companies that resulted in coverage in mainstream media outlets such as the New York Times.

While Verizon eventually (and lamely) dismissed its effort as a mere “proposal,” industry insiders have long expected other carriers to adopt similar charges to increase revenues from the business-to-consumer texts — a space that is exploding as corporations and social networks discover the value of communicating via text. The new toll may seem insignificant, but it could impact the bottom lines of a wide variety of companies like Facebook, Twitter, 4INFO and others that send huge numbers of texts to their users. T-Mobile representatives weren’t immediately available for comment, but I’ll update this post if and when I hear from them.

Related content from GigaOM Pro (sub req’d): What SMS Marketers Can Learn From the Ringtone Space

Image courtesy Flickr user TheTruthAbout.

  1. Charge the spammers!

    Good idea.

    Share
  2. I think it’s interesting to have T-Mobile charge businesses by tweets. I see their tactic, which is people oriented in many ways, but it is a bit bold on their part to get companies to cough up money for such things!

    ~Dee

    http://www.sharetivity.com
    subscribe to our blogs: http://sharetivity.com/blog/

    Share
  3. t-mobile needs to find a way to make money. they’re obviously not raking it in by growing their subscriber base.

    Share
  4. Given that customers already pay t-mobile to receive messages, I’ll be surprised if t-mobile customers don’t become negatively affected by this moe. T-mobile will have to make it in customers interests by, say, not charging customers for text messages sent by businesses paying t-mobile with this new plan. That’s good for customers.

    If a couple major companies such as twitter, Facebook mentioned in this article cease sending text their currently free messages to t-mobile customers, or start charging their t-mobile customers, it would make waves. Ut may not hurt t-mobile too much overall, though it make a portion of t-mobile customers extremely dissatisfied and feeling a bit disconnected.

    Share
  5. Wow talking about price gouging! Let see if I got my math right. 2 bytes per character. 160 max character in a SMS. One text is 320bytes per 25 cents. For 1 megabyte (1,000,0000 bytes) that is 3125 SMS text. That comes to be $781.25/mb!!

    Share
    1. Your result is incorrect by a factor of 100 because you did not continue reading after ” a quarter ” …

      the charge quoted in the article is “one quarter of one cent” !

      So that would be $7/mb.

      Pales in comparison to the 10 to 25 cents which wireless carriers charge for consumer text messages ( a ridiculously high charge ).

      But, look not just for all carriers — but ISPs as well — to figure out how to move surreptitiously to a charge-per-byte plan on all internet traffic. AT&T has already discontinued their ‘unlimited data’ plan for iPhone.

      Charging by the byte treats the Internet like it is a storage device, not a communications channel. And this could well be the unintended consequence which turns out to be the upshot of unclear-on-the-concept slogan-rattling of the “net neutral” campaign tied simplistically to “free speech”.

      Guess what ? It ain’t gonna be FREE.

      Share
  6. [...] can decide.4. Where innovation rushes in, taxation often tiptoes behind–and now T-Mobile USA is considering charging an additional fee to business who use its network for SMS updates. We're talking about [...]

    Share
  7. I’m not paying anyone’s extortion fees, this just means we’re taking T-Mobile off our list of supported providers.

    Share
  8. [...] backlash, Verizon abandoned their plans to enact the measure.I just love the wireless industry!GigaOMRelated Posts:Our server is working on finding them!Categorized | Uncategorized Tags: SMS [...]

    Share
  9. [...] USA is planning to charge an additional fee to businesses that send texts over its network, reports GigaOm. The move will almost certainly impact increasingly popular text message offerings like tweets, [...]

    Share
  10. Verizon representative, “Excuse me Mr Evan Williams, we’re going to charge Twitter, .25c per message”

    Evan Williams, “No problems. We’ll not be sending texts on TMobile”.

    Twitter says to customers, “Due to charges on TMobile, you can no longer receive twitter updates on TMobile. Have a good relationship with your carrier. Good bye”.

    Yeah I’m sure that will work just fine.

    The reality is that the big boys including Twitter and Facebook will carve a side deal. I hear at the moment that those guys actually get PAID by the carriers in order to send messages by taking rev share off the charge to the consumers.

    Patrick.

    Share
    1. Twitter is unaffected and most mobile carriers already charge for-profits for delivering their SMS.

      http://www.clickz.com/clickz/news/1733638/t-mobile-hikes-sms-rate-what-is-impact-marketers

      Share

Comments have been disabled for this post