SMS Cost Increases Probed by US Senate

SMS Cost Increases Probed by US Senate

Four telecommunications companies have been questioned by the US Senate for imposing high costs on SMS messages. The chairman of the Judiciary Subcommitte on Antitrust, Competition Policy and Consumer Rights Herb Kohl has written to Verizon Wireless, AT&T, Sprint Nextel, and T-Mobile, and asked for an explanation on why SMS charges have soared 100 per cent in just two years.

Kohl is particularly concerned on the price increase being given almost simultaneously. The four companies have started to increment costs almost at the same time. As stated in his letter, SMS charges should generate lower costs since text-messaging file are very small; hence, cost carriers have very little to transmit.

Kohl also wrote, "This conduct is hardly consistent with the vigorous price competition we hope to see in a competitive marketplace."  The senator has required the four companies to respond by October 6th.
 


Posted by Emma on 11/09/2008 03:52

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