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Department of Justice: American Wireless Operators didn’t raise their SMS rates to bust your balls

January 20, 2010 by Stefan Constantinescu - Leave a Comment

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Over the past few years the cost of an individual SMS (text message) has nearly doubled in the United States, while in most other countries the reverse is true. The Justice Department, at the request of Herb Kohl, Democratic Senator from Wisconsin, began an investigation as to why this was happening. “The four [largest wireless] companies increased their text messaging prices in two steps—first from 10 to 15 cents, and then from 15 to 20 cents—within months or weeks of each other,” he said last summer. Wireless operators were quick to respond, saying that they now bundle more text messages in their plans so consumers are actually paying less per text. Most people I know usually just pay the extra $20/month and get unlimited. The rising cost of text messages, and this is purely speculation on my part, is to scare you into subscribing to a rate plan that gives you more than actually need, just so you can avoid overage charges; It’s psychological warfare!

Last Friday the Justice Department ruled that American wireless operators were not fixing their rates to reap profit, and that you, the consumer are paying the appropriate price for your service. How thoughtful of them since the Organisation for Economic Co-operation and Development released a report in August 2009 that basically said Americans are getting raped, without lubricant, with their wireless service fees.

[Via: Wall Street Journal]

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