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Cellphone bill on the rise? Check your SMS charges


If you've been paying attention to mobile carriers' SMS pricing lately (and something tells us you haven't) you'd be surprised to discover a fairly disturbing trend amongst providers: price hikes. Over the past year or so, nearly every major carrier in the US has raised their per-price cost of SMS messages, with Verizon and Sprint jacking up the fee from $0.15 to $0.20 a message, and AT&T and T-Mobile adding another nickel to their $0.10 charge. Of course, this trend of rising prices accompanies a major spike in the use of text messages amongst customers, with some surveys marking a 130-percent jump over SMS use since June 2006 -- and telcos are taking it to the bank. What's most insidious about the inflated costs is the fact that SMS data is particularly low-bandwidth, and analysts say that the price increases aren't related to higher operating costs -- these companies are simply gouging customers for a service which they have embraced. Companies say the hikes are meant to encourage customers to go for more expensive "bundles," though we're confident they won't mention it when your Mom uses more messages than her plan allows and unwittingly pays a few extra bucks on her bill -- that stuff adds up, you know?

Up next on the FCC spectrum auction block: 700MHz band

We know, jostling over the almighty 700MHz band may not be as exciting as tossing in your bid for the one and only PowerFest '94 cartridge, but for wireless providers and startups alike, this one is big. The FCC has finally announced technical specifications for the upcoming 700MHz band auction, which is being dubbed the "most valuable available slice of radio-frequency spectrum," but are holding out on the anxious bidders by "not deciding exactly how the spectrum will be divided and sold off." The Congressional Budget Office has reckoned that "as much as $15 billion" could be added to the federal treasury as a result of the auction, as the swath of airwaves in the 700MHz range is being "vacated by television broadcasters as they make the transition to digital TV," which makes for "prime territory for providing advanced wireless broadband services." The FCC Chairman was quoted as saying that this auction would hopefully enable a "third pipe to the home" to be constructed in order to provide "affordable broadband to all Americans." If all this sounds interesting, and you've got billions laying around collecting dust, it sounds like you're in for quite the battle come auction time.




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