Verizon Backtracks On 3 Cent SMS Fee; It’s A ‘Proposal’ Up For ‘Discussion’


imageVerizon Wireless (NYSE: VZ) is backtracking on the 3 cent per-SMS fee it told partners it would begin charging for every message delivered over its network. And yet it still sounds like a fee increase is coming. Which companies get charged, how much and when is still at play to some extent. The OpenMarket memo sent out to partners (and obtained by RCR) that shined light on the new fee was simply a



Sms messages should be very cheap.
A lot of users use sms nowadays, especially with the new service that allow you to send sms to landline phones, very cool.

Scott Springer

This isn’t the first time that Verizon has upset millions of people. Back in 2007, there was its shortfall fee – a $2 monthly charge that was levied to clients who didn’t use their long distance service. Now, Verizon has come up with another creative approach to revenue creation – charging 3 cents for every text message processed on its network. Of course, this charge would arrive on the eve of mobile marketing’s explosion in the US. Verizon has seen an opportunity to capitalize on a rapidly emerging market, but its actions, however, do little to embrace the market’s growing acceptance of mobile as a very serious and relevant marketing channel.

This new cost, albeit still in “proposal stage” according to Verizon, comes as a shock to everyone in the mobile landscape. The announcement that the imposed new fee would start on November 1st, has not allowed for any significant discussions or greater consideration for the subsequent impact to the industry, and consumers. Verizon, by acting in such a short-minded and selfish way, has marred our industry – everyone from messaging aggregators, content partners, mobile marketing providers – and has potentially set mobile marketing in the US back 5-10 years.

If Verizon’s new messaging charge does go ahead on November 1st as threatened, thousands of providers will also be forced to increase their price structures, including ours. This will completely upset the model upon which our industry has been built. But then again, a selfish and short-sighted company wouldn’t care about that. Simply put, this move by Verizon is not conducive to the greater advancement of mobile marketing being considered and conducted by so many companies at a time when they need it more than ever.

Gern Blanston

Put simply and succinctly: Go to hell, Verizon! The stupidity that would dream up such a pricing model change is beyond me, because if adopted carrier-wide it will kill off the relatively nascent SMS publishing/advertising industry, the very industry that's driving so much text messaging traffic to Verizon and the other carriers. Perhaps the dunderheads think they should be creating or controlling that content and the advertising infrastructure? Unbelievable …



why kill the goose that laid the Golden Egg? If anyone knows of any vendor action being taken plz post it. This makes WAP an even more attractive channel.

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