The truth about the cost of SMS

6:31 AM Edited by Blony

What is the truth about the cost of SMS and the prices fixed operators, it is an expensive business? is an expensive service for users?

In USA there is a controversy (requires user to read the note) on the very strong increase in the price of SMS from 2005 to 2008 has increased twice.

This controversy has led to a Democratic senator, Herb Kohl will lead an investigation into the actual cost of the operator to send a message and the price in relation to the cost that would justify such an increase.

The truth is that the operators never discover the truth about its costs.

In recent years, all the cellular operators have made significant investments in infrastructure, to enable a business based on volume of SMS.

Particularly in our country, Argentina, since 2004, the business has evolved in shape every year, so the operators have invested in facilities and equipment for short message signaling to handle normal traffic and also to withstand the peak traffic.

The infrastructure is expensive and as demand increases it is necessary to make investments, but in return the recovery of investment demand is growing fast and steadily.

The cost of maintenance increases with the volume so that once the investment, revenues are high.

The cost of transmitting on the network is not high, short messages have a maximum of 160 characters, 140 for users and the channels are transmitted in the signaling network, reserved for those who can establish the cellular calls.

The most expensive is the administration of the spectrum to maximize your profitability and quality of voice and data, as the operator pays a heavy price.

If the investments to maintain the quality of service demand to justify the hike in prices can never be tested.

In the U.S. the issue of costs and prices is at least the interest of legislators in this and other Latin American countries, no.

In our country, operators are in competition and the prices are not regulated, so the prices are ... those who accept the market, but nowadays, people do not know very well spent and how much it cost SMS traffic.

Difficult to know clearly what is the price of SMS, no operator says it clearly.

For the case, Telefonica Movistar plans for Community Savings, 4 prices for a short message. Incredible!.

The plans are savings plans called for the bill sets of plans are contract, but the pattern of phone use is like a prepaid phone, just when your monthly balance, it is possible to load more credit and continue to consume. All operators have such plans.

To see if you understand, plan for a Community Savings "talk", there is a fee for the SMS-consuming credit allocated monthly and other fees apply when a consumer credit product recharge.

In each case there is a price for completed messages within the network (community) and another for finished outside the network (to other networks, Claro, Personal, or Nextel).

For example, with a joint plan "Hablas Mas" if sending an SMS when yet another credit to recharge mobile Movistar, SMS cost me $ 0.12, if I recharge credit costs $ 0.13, if other than Movistar mobile me $ 0.23, but credit me and recharge costs $ 0.25!.

That logic has a plan?. The cost of an SMS in the network is completed at $ 0.12 / $ 0.13 and while one ended in another network $ 023 / $ 0.25. Send an SMS to a number Claro, Personal, or Nextel, costs twice!

SMS is more expensive finish on another network? If so, because of course without differentiating destinations charged $ 0.15?

Operators also offer pricing plans or packages and messages with a lower cost per message.

Obviously here the margin for the operator should be lower, but the offerings of the operators seem to have no logical relationship between cost and price.

For example, Telecom Personal offers SMS Pack "Whatever you want" for 3 days for $ 5 or $ 9 for 5 days. SMS with 3000 or 5000 for use in times respectively specified in SMS prices of $ 0.0016 and $ 0.0018.

Telefonica Movistar offers SMS to consume a pack in 2 days is $ 9 with 250 SMS at a cost of $ 0036

This way the price of the message is lower but the payment in advance is more important, but ... I mean fixing prices?.

Capitulo deserve the price of premium SMS, no? Or they think that people understand that it will pay an SMS to participate in a concurso/Trivia/888 By Cycle, $ 2 / $ 3 per SMS?

The reality now is that people consume SMS traffic and accept the prices set by carriers and now our legislators are not interested in knowing if the prices are fair.

Should? Or should consumers be more informed?