The chairman of the
Judiciary
Subcommittee on Antitrust, Competition Policy and Consumer Rights has
written to the four biggest telecoms providers to ask for an explanation for the
huge increase in the cost of text messaging.
Herb Kohl has contacted
Verizon
Wireless,
AT
&T,
Sprint
Nextel and
T-Mobile
and asked for an explanation of how the cost of texting has risen 100 per cent
in barely two years.
He is also concerned that the companies introduced the price rises almost
simultaneously.
"What is particularly alarming about this industry-wide rate increase is that
it does not appear to be justified by rising costs in delivering text messages,
" wrote Kohl.
"Text-messaging files are very small, as the size of text messages are
generally limited to 160 characters per message, and therefore cost very little
to transmit."
The four telcos handle about 90 per cent of all the text message traffic in
the US. In 2005 the cost per text was 10 cents, but this has risen to 20 cents.
Kohl said that the fact that all four companies had introduced the price
rises at about the same time also raised serious questions. Sprint first
introduced the higher charges last autumn and other carriers were quick to
follow suit.
"This conduct is hardly consistent with the vigorous price competition we
hope to see in a competitive marketplace," he wrote.
The senator has asked for a full response by 6 October.
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