SMS 4x More Expensive Than Data From Hubble
physorg.com
physorg.com
I had a fun app that I have largely given up on once I realized it was just too cost prohibitive to offer the service for free and allow SMS messaging.
(This was using Clickatell btw.)
Your method, however, requires the user to know the provider of the number. In the application I had made, users could send messages via SMS by just typing in the number.
(Also, at least for my own provider, AT&T, some crud ends up in the message, e.g the subject line of the email.)
As an entrepreneur, it gives me hope that there are useful services which people are willing to pay for directly. The social/viral distribution of sms is impressive: it costs me to send a message to my friends, and I'm encouraging them to spend money with their provider in order to respond.
If it makes you feel any better, think of the SMS fee it as a five pence fee for establishing the connection, and then a negligible per-byte cost which gets rounded down to zero cents. Happy now? Is five pence really all that unreasonable a price for sending a message?
Don't get me wrong: phone companies do all sorts of things which are annoying, overpriced and/or unethical, but I don't see this as one of them.
Smart industries charge what the market will bear.
The real question is: who says that the cost of transmitting information should be linear with the amount of data? If you want to transmit a hundred bytes then SMS is a good way to do it. If you want to transmit five gigs, then some other way would be better.
For instance, if you sign up for shared hosting and go over your alloted bandwidth, they may charge you $0.50 a gigabyte or so. That is linear and it seems reasonable.
What would happen if you could stream high-quality video from mobile phones? With large data transfer capabilities would come interesting new possibilities for markets, companjies, and customers.
I'm sure oil executives talk with each other about, literally, powering America.