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AT&T Raises Messaging Rates

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I just don't understand....

rafster

Jan 28, 2008, 1:15 PM
You would think carriers would want people to text more than talk...

It costs them less bandwidth for people to be texting than to call...

I guess I understand corporate greed, but this is getting ridiculous....

The least that they could do is make incoming texts free or cheaper...hell, make out going 0.25/msg and make incoming free....

It doesn't bother me though.... I have unlimited messaging...

Rafster
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lancekalzas

Jan 28, 2008, 2:24 PM
It's more than simple econmics I'm afraid. Carriers want customers to add some type of messaging package because that is a more guaranteed revenue than a per message charge, which will fluctuate month to month. Most customers who add a messaging feature, keep the feature for the lifetime of the account, thus increasing ARPU(Average Revenue Per User). Increasing the per text fee is going to increase the number of customers who have a messaging feature. T-Mobile's used to be $.05, then, $0.10, and now $.15. Now that the other carriers have raised it to $0.20, I'm pretty sure they'll follow suit because they know that their rate plans are cheaper than everyone else's and they also know their messaging features are cheaper than everyone els...
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jskrenes

Jan 28, 2008, 2:28 PM
also, customers with data packages are more likely to stick with a carrier, thus reducing churn.
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renardlee

Jan 28, 2008, 3:29 PM
that makes sense. i forgot to think of it that way, the individual txting price increases are just an incentive to get a package. no one wants to pay .20 for a txt, so they get a package of certain txts or unlimited. its a secure stream a additional revenue. but it should also be reasonable as well as txting is less taxing on the network.
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Knightlyjay

Jan 29, 2008, 5:54 AM
You've hit it right on the head. By having a good idea of the ARPU, the company can project growth, capital outlays and of course revenue for the stock holders.

All the other carriers also allow folks to opt out, if the change is a severe hardship to the consumer. I'm not sure about the wording, but I remember talking to a customer about it last year when we all went from 10 to 15 cents. We looked at his account and found out that the hardship would be solved with a five dollar txt package (he was using about a hundred a month before the increase) and he wandered away after adding it.

Many of the carriers offer some sort of unlimited txting plan and I make sure I review it with each new sale and all the renews as well. You should...
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