Verizon Wants to Double-Dip on Text Messages
Mobile customers have long wondered why, when they call another cell phone, both they and the person they called are charged for using minutes. The same with text messages sent from one person to another. At least in those cases there was a somewhat plausible explanation that if people used two different carriers, the message or call had to cross two networks and thus two fees were imposed.
Now that most subscribers have unlimited (or effectively unlimited) minutes, and many buy messaging plans so they don't incur a per-message fee, Verizon is exploring "new revenue streams," including a charge for companies that send text messages to its subscribers.
That would include the millions of sports score updates, social network messages, and alerts that companies send to customers to build engagement with them through the mobile channel. Verizon customers already pay to receive that message, but that's not good enough for the telecommunications giant. It wants an additional three cents per message from the sender. Despite the revenue Verizon stands to gain, this is a horrible idea.
Mobile is just starting to take off as a mainstream customer communication channel. More and more consumers own phones with the capability to receive SMS messages, and the smartphone market is rapidly expanding. For Verizon to impose an added fee to reach its subscribers risks stunting mobile's growth. It also risks leaving its subscribers out in the cold if its competitors don't follow suit and companies simply opt not to include Verizon customers in their mobile campaigns.
As a Verizon subscriber, if CBS Sports won't send me updated NFL scores on Sunday because it doesn't want to pay the extra fee, that's a problem. If ten other alert services that I frequent decide to do the same thing, then T-Mobile, Sprint, and AT&T start to look pretty attractive when my contract is up. I already spend $10 a month for the "privilege" of receiving up to 1000 text messages. If Verizon needs an extra three cents on top of that to maintain "The Network," maybe they should hire fewer extras for their TV commercials demonstrating the herd of people it takes to keep it running.
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As the sale of ring tones and wallpaper slow from their peak a couple of years ago, carriers are looking everywhere for the next cash-grab. Not surprising that SMS with it's massive volume is the first target. This move has not been well thought through in managing customer relations or expectations.
The US is a very weird mobile phone market. In a civilised nation only the caller pays.
'No Incoming Calls Without Representation' is quite catchy, though not a lot of use!