🚀 go-pugleaf

On Thu, 09 Jul 2009 15:10:35 -0700, SMS <scharf.steven@geemail.com>
wrote in <JUt5m.6377$j84.3118@nlpi061.nbdc.sbc.com>:

>If you divide the total revenue a carrier derives from texting by the 
>number of messages, the cost per message has come way down. The carriers 
>have changed the pricing structure to encourage subscribers to buy 
>texting plans.

Lower costs through increased efficiency -- clear signs of a free market
at work.

>I don't know what the senate can do. The current a la carte texting 
>rates being the same on all the carriers is really the result of 
>carriers following each other's price changes, and trying to get 
>subscribers to sign up for a texting plan to increase ARPU. They're too 
>smart to openly collude.

It's actually just a matter of adjusting pricing to reflect the costs of
doing business.  If the carriers were really "gouging" on text
messaging, then the cost of messaging bundles wouldn't be so low.

>It's true that during the Bush years that the wireless industry became 
>much less competitive as mergers and acquisitions were rubber stamped. 
>We lost AT&T Wireless, Nextel, and Alltel, but it's too late to undo any 
>of that.

The wireless industry has actually become competitive and efficient, as
evidenced by carriers (including MVNOs) offering much more aggressive
pricing.

-- 
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