Senators smackdown US Carriers over soaring text messaging rates
Looks like the four major US cell phone providers have been caught with their proverbial hands in the consumers pocket. Recently, Sen. Herb Kohl, chair of the antitrust subcommittee, sent a letter to the four major US Carriers (AT&T, Verizon Wireless, Sprint, and T-Mobile) asking them to explain why text messaging rates have doubled over the past 3 years when the cost to send them has remained the same. Seems like the Senator also noticed that when one carrier raises costs, they all follow suit. Aren’t these carriers supposed to be competing against each other to lower rates and not working together to raise them? So far none of the carriers have not responded. Not surprising.
Tags: AT&T, senate, Sprint, T-Mobile, text messaging, verizon wireless
Stuff like this reminds me when I didn’t have a cell phone and didn’t really have to worry about crap like this. I hope these bastards get ass-raped by the government and the consumers get some money back.
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He probably was the cheap bastard who didn’t want to pay for family messaging and his teenage kids (if he has any) got their phones and texted away and his bill is high. Now he’s raising arms!
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They must have learned this from the Oilgiants!!!
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Tyrone… you have the option to not carry one.
as for this dumb ass senator… he should be worrying about gas prices and the economy as a whole and not text msg.
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Git ‘em, son!(in your best hillbilly, banjo pickin, sister-marrying voice)
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Give me a break. My questions is why are they worried with a .20 txt message when gas is 4.00/gallon? Look at the increase in price on that. Write exxon a letter.
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Actually Sprint responded with a nice long legalese sentence basically saying absolutely nothing except they are happy to respond to the Senator’s request.
@Big Papi: This guy is so old, his kids are probably John McCain’s age.
While this guy is at it, he should ask about the 5GB caps and why our cable TV and internet prices are so obscenely expensive.
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Now that the Carriers have been put on notice, the next step is haul their a$$e$ in for questioning.
The other question I’d like to see answered is why is it that in the US, the customer pays to send AND receive text messages when in pretty much every other country only the sender pays?
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If our elected representatives ever get out of the lobbyist’s pockets then perhaps these and other glaring issues with cell phone carriers will be addressed. I have unlimited data, but I have to pay for text messages, I buy my own phone - yet I am locked into a contract with termination fees, I have a locked phone - despite the fact I paid for the phone and lets not talk about the fees and taxes.
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While texting is certainly very expensive; I would like the senator to send a similar letter to the oil/gas companies. Price of gas was much cheaper 3 years ago.
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Let the market decide the rates. Government has plenty of other things they can screw up. The market, when left alone, will always correct itself.
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Since all major US carriers provide the US government their own blackbox view of every IM/text/email message sent domestically and internationally, the government certainly already has the goods on the consumers’ side of this issue.
It may be entertaining to watch the CEOs of each of the major carriers squirming before congress, providing their testimony as to what justifies their random, 50% charge increases. With any hope, it would be enough inspiration for the carriers to self-regulate themselves with more sobriety.
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@Jon:
Please don’t spread such nonsense. Blanket statements, such as “The market, when left alone, will always correct itself” are simply irresponsible of historically documented facts and history doesn’t change based on one’s political viewpoint.
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“So far none of the carriers have not responded.”
So, they have all responded? What did they say?
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Backbeat, My statement is historically correct. I challenge you to show me when a true free market situation didn’t correct itself.
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I’m not going to complain. As someone that sends/receives over 10,000 txt msgs a month I am MORE than happy to pay $20 for unlimited txt messaging instead of being required to pay a per msg rate. Thank god for UNLIMITED!
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collusion = anti-trust violation
microsoft, anyone?
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While I am not to keen on government control with politically-affiliated appointed officials - we need regulation. Not price caps - but fair and unbiased regulation.
Like consumer regulation. Have all corporations report and respond to a consumer-rights oriented, apolitical regulation committee that can asses fines and even bring criminal charges against companies. But have this committee completely separate from the federal government.
Just my $0.02
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@ Jaydie
If everything you said is true, you screwed up somewhere. If you truly “purchased your own phone” without a subsidy, there is no reason to be on contract. And if the phone is currently locked the carrier should be able to unlock it for you. If you actually do own it out right and it was not purchased under a subsidy agreement. The only device I can think of that may not fall under these rules is the iPhone. And only because I don’t think they are selling the iPhones unsubsidized in the US yet.
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@Jaydie
Your data covers your email and internet usage, what does Text messaging have to do with it? You purchase your phone at a discounted rate. The major carriers pay a premium for those phones from the manufactors. It enables you to get that kickass Nokia 2610 for free. Why should they take a huge loss on that cell phone cost and not get their money back? Why should they swallow the bill and you take it to another carrier. You can always pay the MSRP and not have a contract…I don’t know what the beef is. The phone is locked, and again…why should you buy a phone from say ATT on the cheap and then run and use it on TMo and vice versa and then the carrier loses money. The rumblings are that the Bold is going to be like 500 bucks if not more, why should you be allowed to buy it from ATT for say 200 bucks and you run with it? They lose out on 300 bucks if you terminate after your 30 day period. Taxes are covered by the dudes that are raising complaints about SMS rates…file that with them. Cumulative state and fed charges hover around the 20% area depending on where you live. That has nothing to do with your carrier. There are some beefs around for sure, but I can’t wrap my head around some of those
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@backbeat…Milton Friedman had a good laugh at your post. Feel free to spew your Keynesian rhetoric right now. Want some help in this battle?
Hey jon - in the long run we’ll all be dead.
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@Jon, this problem will not correct itself unless say U.S. Cellular (or even MoDaCo, they did get some of that 700 mhz) takes the lead and everyone has to lower their rates to compete (which won’t happen) or until loads of people stand up and say “No” (which won’t happen). If the 4 carriers can get away with charging $0.20, they will continue and won’t stop unless stopped by outside forces, not the market.
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Am I the only one that’s confused with the last 2 sentences? “So far none of the carriers have not responded. Not surprising.” It’s a double negative, meaning all of the carrier HAVE responded?
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@Jon:
If your statement is historically correct, why does the FDA exist? Harm to population(s) of consumers causes our government to respond when self-regulation fails. Protection of its people to preserve life, liberty, and the pursuit is our centralized government’s foremost purpose. Is ‘Cause-&-Effect’ _that_ difficult a concept to grasp?
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I get what your all saying about congress worring about other things. What I don’t under stand is why are you pissed at this guy for trying to help? It’s not like he is going after the NFL and the patriots like that other idiot did. This is actually something millions of people use everyday. Yes gas is $4 a gallon and they need to worry about that. They’ve pulled the oil companies in time and time again putting on a show acting like they are doing something nd then they don’t. The oil companies have congress in their back pocket and it will always be like that. Atleast this guy is asking why texts are going up when it still costs the same. I know on here there are fan boys for Verizon,AT&T and so on.You guys could care less how much they charged. I’m glad someone is atleast asking why. Sometimes I think Verizon could tripple your bills and some of you would defend it to the end. Same goes for AT&T and yes I’m with Verizon. I can’t wait to leave them.
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