Comments on: Will Verizon’s New Three-Cent Hike Kill SMS Services?

By: GNC-2008-10-13 #416 Back in the Saddle | Geek News Central

GNC-2008-10-13 #416 Back in the Saddle | Geek News Central — Fri, 17 Apr 2009 02:40:24 +0000

[...] Seesmic lays more people off FCC Free Wireless Web Silverlight 2 Newspapers Web Ad Revenue Stalls Verizon SMS Hike will hurt many Web 2.0 Companies Soyuz to ISS MSL to Mars in 2009 Benefits of Sponsoring a Wordcamp McAfee Says more Bogus Security [...]

By: Deprecated » Blog Archive » Releasing a bird-in-the-hand

Deprecated » Blog Archive » Releasing a bird-in-the-hand — Sat, 24 Jan 2009 23:05:11 +0000

[...] Will Verizon’s New Three-Cent Hike Kill SMS Services? [...]

By: tinyComb » Blog Archive » Verizon Getting Into Some Messy Business

tinyComb » Blog Archive » Verizon Getting Into Some Messy Business — Sat, 29 Nov 2008 14:37:00 +0000

[...] TC View jason’s Profile Subscribe via RSS RelatedBookmarksTags Picasa Gets Some Cool UE Functions… Picasa, Google’s photo management service, has added cool user engagement features to take on Flikr Explorer, is a widget integrate… MixMatchMusic Turns Members Into DJs… MixMatchMusic, which launched its public beta today at DEMOfall 08, is a music service that lets indie artists upload songs which ca… PeopleJar. Nice Work, But I Have Some B… PeopleJar is a social network that helps users with similar interests connect using a highly-customizable search engine Members cre… Digg it Stumble del.icio.us reddit Yahoo Google tinyCrunch [...]

By: BlogBuzz October 18, 2008 | Webmaster-Source

BlogBuzz October 18, 2008 | Webmaster-Source — Sat, 18 Oct 2008 10:01:44 +0000

[...] Will Verizon’s New Three-Cent Hike Kill SMS Services? [...]

By: Scott Springer

Scott Springer — Fri, 17 Oct 2008 16:01:43 +0000

This isn’t the first time that Verizon has upset millions of people. Back in 2007, there was its shortfall fee – a $2 monthly charge that was levied to clients who didn’t use their long distance service. Now, Verizon has come up with another creative approach to revenue creation – charging 3 cents for every text message processed on its network. Of course, this charge would arrive on the eve of mobile marketing’s explosion in the US. Clearly, Verizon has seen an opportunity to capitalize on a rapidly emerging market, but its actions, however, do little to embrace the market’s growing acceptance of mobile as a very serious and relevant marketing channel.

This new cost, albeit still in “proposal stage” according to Verizon, comes as a shock to everyone in the mobile landscape. The announcement that the imposed new fee would start on November 1st, has not allowed for any significant discussions or greater consideration for the subsequent impact to the industry, and consumers. Verizon, by acting in such a short-minded and selfish way, has marred our industry – everyone from messaging aggregators, content partners, mobile marketing providers – and has potentially set mobile marketing in the US back 5-10 years.

If Verizon’s new messaging charge does go ahead on November 1st as threatened, thousands of providers will also be forced to increase their price structures, including ours. This will completely upset the model upon which our industry has been built. But then again, a selfish and short-sighted company wouldn’t care about that. Simply put, this move by Verizon is not conducive to the greater advancement of mobile marketing being considered and conducted by so many companies at a time when they need it more than ever.

Scott Springer,
Vice President, Strategic Services
SmartReply, Inc.

By: bigMETHOD

bigMETHOD — Wed, 15 Oct 2008 16:47:45 +0000

[...] it will be at the cost of consumer loyalty for your brand (or what little loyalty may be left). TechCrunch: Will Verizon’s New Three-Cent Hike Kill SMS Services? Posted by greg October 15th, 2008 [...]

By: Could SMS price changes threaten ARG interaction? « Alternate in Wonderland

Could SMS price changes threaten ARG interaction? « Alternate in Wonderland — Tue, 14 Oct 2008 19:51:38 +0000

[...] uses last week and wondered how they could come into play in an ARG. Since then, TechCrunch has reported that Verizon is increasing their SMS charges. Screen Capture of a portion Jane [...]

By: Life@160 » Verizon starting to squeeze the Golden SMS Goose

Life@160 » Verizon starting to squeeze the Golden SMS Goose — Tue, 14 Oct 2008 18:15:39 +0000

[...] Friday, Verizon wireless leaked plans to introduce a 3-cent SMS surcharge for text messages originating from the Web. This [...]

By: Tolu

Tolu — Tue, 14 Oct 2008 05:41:57 +0000

Because the email gateway is also owned by the wireless companies and is not supposed to be used for mass broadcasts. The telcos can simply shut down the interface if you violate this agreement.

By: Jeremy Haile

Jeremy Haile — Mon, 13 Oct 2008 17:56:39 +0000

Now I’m glad I use AT&T instead of Verizon. I won’t be using Verizon anytime soon. SMS is a rip-off as it is.

By: Andre

Andre — Mon, 13 Oct 2008 17:54:18 +0000

I second that Jason.

I own a Patent Pending Text company call Text To Party, It’s a Event, Nightlife, On-the-Go Party Guide.

Here’s how you’ll use TextToParty: For a small fee ($0.99), you send them an area-code specific text (”PARTY305″ or “PARTY954″ to 88089) and instantly receive a hand-selected group of the hottest special events and parties going on in your area. After deciding on the most enticing spot to make your appearance, you respond once more by text and get hooked up with guest lists, bottle connects, drink passes, VIP hosts and all the other best-kept secrets of promoters. (They’ll even shoot you directions and parking info.)

http://www.texttoparty.com
http://www.texttoparty.blogspot.com

So this will affect me but not as much because people are actually texting in and we are not sending blast out, or would it affect my company too?

please let me know…

Thanks

By: Andre

Andre — Mon, 13 Oct 2008 17:53:47 +0000

I second that Jason…..

I own a Patent Pending Text company call Text To Party, It’s a Event, Nightlife, On-the-Go Party Guide.

http://www.texttoparty.com
http://www.texttoparty.blogspot.com

So this will affect me but not as much because people are actually texting in and we are not sending blast out, or would it affect my company too?

please let me know…

Thanks

By: Jeffrey Posner

Jeffrey Posner — Mon, 13 Oct 2008 17:27:24 +0000

I don’t think this $ .03 is for customers. MT stands for mobile terminated. Pretty sure if you have an unlimited messaging plan on verizon you’re fine. It’s the companies that have to pay.

By: Cartel Definition

Cartel Definition — Mon, 13 Oct 2008 17:02:32 +0000

“Cartels” usually occur in an oligopolistic industry, where there is a small number of sellers and usually involve homogeneous products. Cartel members may agree on such matters as price fixing, total industry output, market shares, allocation of customers, allocation of territories, bid rigging, establishment of common sales agencies, and the division of profits or combination of these. The aim of such collusion is to increase individual member’s profits by reducing competition. Competition laws forbid cartels. Identifying and breaking up cartels is an important part of the competition policy in most countries, although proving the existence of a cartel is rarely easy, as firms are usually not so careless as to put agreements to collude on paper.

By: Verizon and Mobile Marketing « Seth Resler’s Blog

Verizon and Mobile Marketing « Seth Resler’s Blog — Mon, 13 Oct 2008 16:47:09 +0000

[...] and Mobile Marketing TechCrunch has a great post on the possible effects of a Verizon ratehike on services with text messaging [...]

By: MobileWatcher

MobileWatcher — Mon, 13 Oct 2008 16:36:49 +0000

Canada is another country that charges users to receive SMS messages.

By: Hm

Hm — Mon, 13 Oct 2008 14:42:07 +0000

I’m surprised you didn’t mention Senator Kohl’s request for information in this article.

http://www.senate.gov/~kohl/pr.....09B29.html

As the chairman for the antitrust subcommittee, he’s requested quite a bit of information on why the price of text messaging has gone up so much. I imagine this won’t make things better for Verizon…

(Fun fact 182: Text messaging was originally created as a way to monetize the extra bandwidth on the lines. Even now, it doesn’t cost a single extra cent to send text messages within networks.)

By: :: RADIOGLUE :: Visual Design for the Radio Industry

:: RADIOGLUE :: Visual Design for the Radio Industry — Mon, 13 Oct 2008 13:51:49 +0000

[...] While it may be good for Verizon, the additional charge is not good for any service that sends out millions of SMS messages each month. The move caught a lot of Internet companies, SMS aggregators, and media companies by surprise. [MORE] [...]

By: Kristen

Kristen — Mon, 13 Oct 2008 13:37:01 +0000

Todd,

I’m sorry to be the one to tell you this but your $5 text package is *not* unlimited. It will contain either 250 messages with overage being $0.10/msg or if it is an older package, it could be unlimited Verizon to Verizon & 50 messages for the out of network texting. Check your bill on the ‘your calling plan’ column.

By: Verizon jacks up SMS pricing, extra 3 cents » Enscriber

Verizon jacks up SMS pricing, extra 3 cents » Enscriber — Mon, 13 Oct 2008 13:03:32 +0000

[...] TechCrunch] [...]

By: Paul

Paul — Mon, 13 Oct 2008 05:24:33 +0000

Nice to hear the logic people used to justify continued investment in typewriter ribbons. Makes me feel all warm and nostalgic.

By: Zach Weisman

Zach Weisman — Mon, 13 Oct 2008 05:04:24 +0000

BBM killer {seesmic_video:{”url_thumbnail”:{”value”:”http://t.seesmic.com/thumbnail/ISQk11BBAG_th1.jpg”}”title”:{”value”:”BBM killer ”}”videoUri”:{”value”:”http://www.seesmic.com/video/Pc8nI89E0X”}}}

By: Zach Weisman

Zach Weisman — Mon, 13 Oct 2008 04:54:16 +0000

We need a cross platform BBM killer.
And don’t say “What about AIM, gchat, yahoo etc…”

People want to be able to chat blackberry to iphone and more…
People want to ping, send files and voices.
People want to be able to know who is logged in via their mobile device
People want to know if a message was delivered and received.
People want free unlimited texts AND would pay for this.

This could grow to include premium SMS features.

The carriers don’t want this because it will impeded on SMS revenue.
Apple doesn’t want this because they are in bed with the carriers
Blackberry doesn’t want this because BBM is the main reason many people keep their blackberry.

THIS WOULD BE A DISRUPTION TO THE ENTIRE MARKET, BUT IS TOTALLY FEASIBLE.

By: Zach Weisman

Zach Weisman — Mon, 13 Oct 2008 04:45:51 +0000

We need a cross platform BBM killer.
And don’t say “What about AIM, gchat, yahoo etc…”

THIS WILL BE A DISRUPTION TO THE ENTIRE MARKET.

Remember this post and toss me a kickback when you conquer the world. You’re welcome.

By: Brian

Brian — Mon, 13 Oct 2008 04:08:47 +0000

Not sure what happened to this story, but I remember reading a few weeks ago that a US congressman had written to each of the telco’s regarding the increase of SMS costs from 10 cents to 20 cents. The congressman indicated in his letter that he felt that the increase had a lot to do with the decrease in competition from 6 to 4 and less to do with a rising cost of SMS. I was wondering if someone could chime in as this seems like a bold move to make after congress starts asking questions around your prices.