• Text apps 'lost networks $13.9bn'
    43 replies, posted
[QUOTE=Gmod4ever;34805592]While Internet is usually more costly than texts, on a per-use basis, consider this. Let's assume there is a Network A, which charges $60 a month for unlimited Internet usage, and $0.15 per text message using their service. It would take 400 text messages, at $0.15 per message, to equal the same as the $60 for unlimited Internet. This is over a span of a business month, typically 30 days. This averages out to 13 texts a day. I don't personally own a phone with texting capabilities, but I know people who do - and a single texted conversation takes up about 10 texts, [b]BY ITSELF[/b], if not more. So 13 texts a day is a number easily achieved, and easily surpassed. What's more, according to a 2010 article on MSNBC.com, [url=http://technolog.msnbc.msn.com/_news/2010/10/14/5290191-average-american-teen-sends-and-receives-3339-texts-a-month]The Average American Teenager Sends and Receives 3,339 Texts Every Month[/url]. This would translate, at $0.15 a text, to $500 a month. Once a person begins to text more than 400 times a month, it becomes cheaper to pay the $60 a month for unlimited Internet, and use a free-to-use texting app (like Facebook) on that Internet. Assuming that Customer A sends 3339 texts a month, then the amount of [b]POTENTIAL REVENUE[/b] Network A is losing to this customer is $440 a month, assuming Customer A uses the $60/month Internet as opposed to the $0.15/text plan. And then this isn't even taking into account that most networks charge higher fees for texts that go long distances, and even [b]more[/b] for international texts, whereas the unlimited Internet plan wouldn't be affected by distance. That's where their potential revenue loss comes from.[/QUOTE] Now I'm tempted to get internet. But If you spend £10 on Orange you get thousands of free texts and 50MB of free internet..so now I'm confused still.
What a shame ;_; I am truely sorry for your lots
[QUOTE=Canary;34805666]Now I'm tempted to get internet. But If you spend £10 on Orange you get thousands of free texts and 50MB of free internet..so now I'm confused still.[/QUOTE] Just found out if I get an Orange extra online I can spend £5 and get 250MB for a month, I shall try that from now on.
[QUOTE=SweetSwifter;34802109]So, a company that made this service, is now losing money because of another, better and cheaper service that is being offered. Isn't that how the world works?[/QUOTE] Leave it to the American government to fix the "Free market" They always do the right thing.
Well currently I'm on Giffgaff in the UK, so if I top up 10 pound I get unlimited free texts (properly unlimited), unlimited internet (properly unlimited) and 250 mins of phone calls (hardly used). So I still use SMS all the time. And trust me, I send a lot of texts.
Why charge so much anyway for texts? You're sending 140 bytes! That's right, bytes, you read that right. Not kilobytes, bytes. It's kind of disgusting. Good thing I have a cheapo phone plan.
Instead of "lost networks $13bn" it should be "saved the consumers $13bn".
Can't wait for Ofcom to jump all over this shit and make texts free for everyone.
I use the facebook chat app thing instead of texting nowadays, it's a lot faster. It makes no difference to the phone company though so I'm on contract and I'm still technically paying for the 3000 texts a month that I never use.
I can see why, at one point i was spending about £5 (50 texts) a day on credit just to text people. Switched to a contract with unlimited texts for £10 a month lol
Charging for texts is one of the stupidest fucking things I've ever heard of.
[QUOTE=geogzm;34818274]Charging for texts is one of the stupidest fucking things I've ever heard of.[/QUOTE] It's one of the smartest thing I've heard of.
[QUOTE=kaskade700;34820116]It's one of the smartest thing I've heard of.[/QUOTE] Well, it's smart in the same way that getting old people to sign over their life savings to you is smart.
making people pay for the service of communicating with text anywhere there is no internet is fine in this day and age. Most places have wifi zones now so not having to pay for texting is very easy. Only having to pay when you just happen to need to send a quick message on the go makes sense to pay for. Depending on weather your network is not rubbish.
Sorry, you need to Log In to post a reply to this thread.