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AT&T and Verizon Fight Back Against Price Fixing Accusation

Article Comments  29  

Jun 17, 2009, 7:53 AM   by Eric M. Zeman   @phonescooper

Both AT&T and Verizon Wireless have responded publicly to allegations that they colluded to raise the prices of individual text messages. The rate to send a single message has risen from 10 cents to 20 cents between 2006 and 2008. Several senators allege that the price increases prove a lack of competition in the market. AT&T and Verizon each issued statements noting the fact that the price increases in text messaging fees affect only about 17% of their customer base, as the remaining 83% have chosen to subscribe to bundled messaging plans. In sum, only 1% of all sent text messages actually cost 20 cents.

more info at Reuters »

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Comments

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This forum is closed.

donebrasko

Jun 17, 2009, 11:45 AM

Punishment

They are forcing people to get text plans. Thats why they raised the prices. So if you dont get a text plan, they will punish you by making you pay more.
donebrasko said:
They are forcing people to get text plans. Thats why they raised the prices. So if you dont get a text plan, they will punish you by making you pay more.


Exactly. That is the intent of the exorbi...
(continues)
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$20 unlimited text plan ftw
alright... under the old plan, at .10 a message, you would need 50 messages before it would be cheaper to get a texting plan.

Under the new system it is 25 messages. Yes, it is lower, but honestly... if you are texting more than 30 messages a mo...
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crammy1

Jun 17, 2009, 10:10 AM

notice how almost all featues of their plans are alike

the accusation is not about how many customers actually pay for it but that they talked to each other so prices would be the same..
so the number of people using the service does not in any way prove that their guilty of price fixing or otherwise..really i dont see the sense of the two providers argument...or maybe im wrong i dunno..somebody explain this to me Shocked
Yes, because if verizon increased their base packaging to 450 messages (or whatever) att would do it soon as well. They are the biggest two competitors, if one changes their plans the other needs to change or offer some alternative right away.
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Azeron

Jun 18, 2009, 7:14 PM

Thanks Guys

Honestly, I had no idea how much it cost the carriers to generate an SMS. Thanks to the responses I received, I actually went searching for the cost. Now that I realize that it costs the carriers "virtually nothing" to generate SMS and even less to generate MMS I really feel like they are getting over. They are setting their own price! They better get reasonable quick. Either that or be sure to grease the correct Senator's palm (Though I am sure they have that covered already). Just want to thank you guys for bombarding me with your negativity so that now I really feel like the FCC needs to come in and knock some skulls around.

http://mobile.slashdot.org/comments.pl?sid=433536&ci ... »
Yankees368

Jun 17, 2009, 8:45 AM

Lack of competition?

The government is complaining about lack of competition?!?

Then why the hell do they keep allowing companies to merge? AT&T/Cingular, Verizon/Alltel, Sprint/Nextel.

Wahhhhhh lack of competition.
Yankees368 said:
The government is complaining about lack of competition?!?

Then why the hell do they keep allowing companies to merge? AT&T/Cingular, Verizon/Alltel, Sprint/Nextel.

Wahhhhhh lack of competition.
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EliteABombAZ

Jun 17, 2009, 11:09 AM

What about charging customers for text messaging and data....

The carriers should not be able to get away with charging customers for data plans and texting plans... when all text messages are just little bits of DATA!
EliteABombAZ said:
The carriers should not be able to get away with charging customers for data plans and texting plans... when all text messages are just little bits of DATA!


W/ the exception of some MMS, SMS do no...
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CrackberryCurve

Jun 17, 2009, 8:33 AM

Price Fixing

While it may be true that a very small percentage of users pay the .20 per text, the rest of the people are signed up for text plans. I wonder how inflated these plans might be?
This is where they make their cash. The price plans.
 
 
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