Comments on: Verizon Triples SMS Marketing Rates; Will it Affect Twitter?

By: Tolu Agbeja

Tolu Agbeja — Wed, 30 Nov -0001 00:00:00 +0000

This will certainly make other wireless providers consider raising their fees. This is what happens when a companies gains a strangle hold on an industry. Has anyone thought about how coincidental it was that this nonsense was leaked to the public just as soon as the news that Verizon was taking over Alltell and becoming the de facto largest US wireless provider died down? From all investigation conducted, it has been established that it costs the wireless companies a faction of a cent to transmit sms and that the fees being charged is almost a 100% profit. So what cost is Verizon trying to defray? How can Verizon justify this increase being that they take about 50% of all revenue accruing from premium campaigns? I believe we have a hungry shark on our hands!!

By: Brady Brim-DeForest

Brady Brim-DeForest — Wed, 30 Nov -0001 00:00:00 +0000

I predict this will force Twitter to limit outbound SMS service for Verizon subscribers almost immediately.

By: centernetworks

centernetworks — Wed, 30 Nov -0001 00:00:00 +0000

Thanks Brady – should be really interesting – especially if the other carriers follow suit.

I don’t use twitter via sms – just via the webclient at home and the mobile web site when on the road.

By: Stephen Roberts

Stephen Roberts — Wed, 30 Nov -0001 00:00:00 +0000

“to make sure the charges align with our costs”

It costs virtually nothing for carriers to handle SMSs. A fraction of a cent at best.

This is not about recouping costs, its about seeing how much people are willing to pay.

By: Nick Stamoulis

Nick Stamoulis — Wed, 30 Nov -0001 00:00:00 +0000

It will definitely affect Twitter… afterall,Twitter isn’t really making money yet so to have to spend any more during these times isn’t a good move.

By: Tim Marman *

Tim Marman * — Wed, 30 Nov -0001 00:00:00 +0000

Precisely. SMS is already ridiculously overpriced on the consumer side as well.

Shouldn’t their costs be dropping for this?

By: William Jones

William Jones — Wed, 30 Nov -0001 00:00:00 +0000

In my opinion, Verizon is making a big pricing mistake. I have not read anywhere on the web as to why they are making such a big increase that will have huge ramifications across the industry. I am looking forward to the feedback and the events that will happen in the coming days, and how it will all unfold. I guess that we will really find out what the price elasticity of demand of SMS is really soon.