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SMS Text Messaging & Youth Debt One

securitas writes "The New York Times' Lisa W. Foderaro reports on the impact of SMS text messaging and resulting debt on America's youth. The predictable but seldom-considered effect of the recently available technology combined with the social role instant messaging and SMS play are leading to bills that youth and parents alike can't afford. 'Many high school and college students accustomed to sending unlimited instant messages on their computers do not adapt easily to text messaging's pay-per-message format, and end up with unexpectedly high bills' ranging from $300 to $800 per month. One school principal says that 'many students were blindsided by costs associated with text-messaging and other features, like customized ring tones"

21 of 471 comments (clear)

  1. In the Philippines by Pao|o · · Score: 2, Insightful

    In the Philippines we've (kinda) solved this problem by having prepaid SIM cards. They make up the bulk of accounts in my country seeming most of population can only pay on a staggered/installment basis. Maybe America's youth should do the same.

    1. Re:In the Philippines by frisket · · Score: 2, Insightful
      "Bills"? What bills fer fuxsake? Everywhere else in the world, kids cellphones are on a "pay as you go" basis, where you buy prepaid credit in any corner store. It's impossible for anyone under 18 and not in full-time employment to get a monthly-bill phone, for blindingly obvious reasons.

      Only complete and utter congential cretins like the US telcos would think of giving monthly billable credit to kids. Hardly surprising that the economy is falling to pieces along with the social structure :-)

      Will the last person to leave the USA please turn out the lights?

  2. Responsibility by AlexTheBeast · · Score: 5, Insightful

    Wah, wah, wah.

    You could say the same thing for cell phones in general.

    I had to "work-off" my long distance phone bills in the BBS days...

    You set the limits as a parent... and if the kid goes over it, he/she pays.

    It's called growing up.

    1. Re:Responsibility by beagle · · Score: 5, Insightful

      Yup. I mean - oh, the horror of learning that things in life really aren't free!

      This is a story?

      PS - there was an article in the local paper recently about how "the fees add up fast." Indeed they do, and this is why I don't have many of these monthly-fee services.

  3. Shocking truth by DaKritter · · Score: 3, Insightful

    Commercial services may cost money!

    Shock horror.

    1. Re:Shocking truth by ahknight · · Score: 5, Insightful

      It's not even that, it's that they're using it wrong, too. For instance, with Sprint I can pay $10/mo. and get unlimited SMS messages. For $10. Screw this $800 crap, with just a little planning and a little forethought they wouldn't pay more than $60 a month for the whole package.

      It's just another sign that people are stupid.

    2. Re:Shocking truth by thegenerousjew · · Score: 2, Insightful

      The above post is modded insightful. Will I be modded insightful or funny for pointing out it should be modded funny and not insightful?

      --
      Time is an illusion, lunch doubly so.
    3. Re:Shocking truth by penguinoid · · Score: 3, Insightful

      Commercial services may cost money!

      Wrong. Or did you mean to say, "Commercial services may be expensive." It may be splitting hairs, but sending SMS messages costs almost nothing but is grossly overpriced. For no reason other than that it is usefull enough that people will pay anyways. Ahh, the free market at its best!

      --
      Don't waste your vote! Vote for whoever you want, unless you live in a swing state it won't matter anyways
  4. one simple solution by kraut · · Score: 5, Insightful

    Pay as you go phones. Pay for the credit upfront, and when it's used up, you stop until you can buy more from your pocket money.

    --
    no taxation without representation!
    1. Re:one simple solution by Seumas · · Score: 5, Insightful

      I'm 27 and I don't own a cell phone. I never have. I've only used one a few times. I'm a software engineer for a big corporation required to provide 24x7 responses. To that end, I wear a $10/mo company-paid two-way pager.

      Carrying a cell-phone around strikes me as needless baggage and excessive availability. I prefer not to have to be reachable by every human being on earth every moment of every day. I'd like to consider my time sipping a coffee and reading the paper in the local cafe on a Saturday morning as _my_ time. Nobody should ever need to reach me so urgently that I need to carry a device that would permit disruption of that.

      I understand why UPS drivers need a cell. I understand why cab-drivers need to. I can even understand why a CEO or an IT manager might. But beyond that, it's just a frivolous toy. Children managed to keep in touch with their parents and let them know where they were and what htey were doing for decades prior to this without posessing cell phones.

      If I had a child, I can't imagine them providing any viable excuse as to why I should purchase a cell phone for them and pay the bill. And as their parent, I would not let them get one and pay for it themselves for the simple fact that I want to avoid them putting themselves into debt before even seeking out college loans a few years down the road.

      Why six year olds and fifteen year olds are carrying them around like a house-key is beyond me.

    2. Re:one simple solution by zakezuke · · Score: 4, Insightful

      If I had a child, I can't imagine them providing any viable excuse as to why I should purchase a cell phone for them and pay the bill

      1. Payphones are not everywhere anymore. Even when I was in school there was only one payphone on campus for grades 7-12. Now there is none.
      2. Collect calls cost an arm and a leg. After getting a few "come pick me up" calls I was in awe.
      3. Calling cards don't always work in payphones.
      4. You can often get a family plan with unlimited airtime between family phones.
      5. Safety

      I'm not saying that getting a cellphone for a kid is the right choice. But there are good reasons why one may consider it. I went with a pre-paid phone for my nieces. "Come pick me up" cost 25-55cents and there was no chance in hell there would be a charge above and beyond what was pre-paid.

      --
      There is no sanctuary. There is no sanctuary. SHUT UP! There is no shut up. There is no shut up.
  5. News! by Erwos · · Score: 2, Insightful

    People make stupid financial decisions! Story at 11!

    There's really no excuse for this kind of thing except sheer stupidity. I know that Sprint allows unlimited incoming/outgoing SMS messages for $10 a month. This is really no different than a kid running up their parent's credit card a buck a shot to $400, when you get down to it.

    As for me, I can't really even imagine sending and receiving 300 SMS messages a month, let alone the 3000 that these kids seem to handle with ease. Maybe I could do it with a Sidekick, but damn, not with a regular cell phone.

    Stupid semi-OT question: does anyone have any experience with buying a T608 on eBay and getting Sprint to set it up to work with the network? Any experiences on how good a phone it is in general?

    -Erwos

    --
    Plausible conjecture should not be misrepresented as proof positive.
  6. In A Related Story... by da3dAlus · · Score: 4, Insightful

    Makes me think of this one: "Economic Woes and Dismal Math/Science Scores: Related Deficits?"
    To be blunt, it really makes me think that most of America's youth is too stupid to know that X messages @ $0.yy ea = $lots'ocash.

    --

    Sometimes I doubt your commitment to Sparkle Motion.
  7. Pay to recieve SMS? by MPHellwig · · Score: 5, Insightful

    So , if understand this correctly,in the US you have to pay for sms you send and recieve,even without knowing that you wanted to recieve that message?
    Do you guys also have to pay for recieving post (with a stamp)?

  8. Would you like some cheese . . . by Kaimelar · · Score: 2, Insightful

    . . . with all that whine? Seriously, I can only have so much sympathy for anyone who signs a contract with the costs spelled out clearly and then is unprepared when they are expected to pay those costs.

    And I believe today's User Friendly comic is apropos: http://ars.userfriendly.org/cartoons/?id=20050109

  9. People are stupid by BenjyD · · Score: 3, Insightful

    Isn't this just more evidence that most people are a bit daft when it comes to money? If they're not actually paying for it there and then with cash, most people find it hard to think of it as real money.

    It's just like those idiots who get the cheap introductory offers from companies like 3 and think "ooh, I'm getting a good deal" , but don't look up how much the normal monthly tariff is. It often doubles from £15 to £30 after three months or something, with a one year minimum.

  10. Why this *IS* a Problem by Major+Lame+Brain · · Score: 2, Insightful

    This mobile phone stuff is the same kind of problem as folks who get in too deep with credit cards. It's easy to think "it's their problem and they're idiots for not recognizing that products and services co$t!" Unfortunately, the end result is often higher costs for everyone. When individuals default on loans, rates for the rest go up. The US government seems to ascribe to the culture of living beyond its means too. Usery is alive and well and sometimes awefully hard to discern.

    --
    I report to Colonel 2.6.1 and General Chaos is his boss.
  11. Re:Only in North America by ion++ · · Score: 2, Insightful

    Receiving phone calls and sms is free of charge in Denmark. Sending sms and calling people costs money, but one can control that by not calling or sending messages. It is a problem if others can run up your phone bill just by calling/sms'ing you.

  12. Re:How much do you pay for SMS by MaynardJanKeymeulen · · Score: 3, Insightful

    What I found the strangest thing in the article,
    is that one has to pay for recieving messages.
    Here in Belgium, you only have to pay for sending, mostly about 0.13 (about $0.10 or less)
    It's not like you have to pay to recieve a phonecall or something, or am I mistaking?

    --
    "The day Microsoft makes a product that doesn't suck is the day they make a vacuum cleaner."
  13. Re:How much do you pay for SMS by wing03 · · Score: 3, Insightful

    Pay to receive?

    So cell phone SPAM also incurrs a charge?

    Yeesh!

    We pay corporations to wear the clothes they make in sweat shops so we can display their logos.

    We get increases in ticket prices to go see movies which have become chock full of placed products that advertisers pay the studios to put in.

    Now, we pay the cell phone companies every time an advertiser sends us an SMS ad?!?!

    WTF?!?!

    Next time someone sings the praises of the capitalist free world, I'll be sure to shovel all that back to them and remind them how great it is that big business can freely make us pay through our noses!

  14. Re:SMS on cell phones- QUIT YOUR WHINING!!! by neurocutie · · Score: 2, Insightful
    it is not OK for companies to set arbitrary and complicated pricing schemes and trap customers in it.

    I don't think 10 cents a message can be considered "arbitrary and complicated".

    At some point, the carrier should have done an automatic "courtesy upgrade".

    Do you know of ANY common service that works this way ? If you bring 12 individual cans of Coke to the cashier at the supermarket, do you expect the cashier to say: "Gee each can costs 75 cents, but a twelve pack only costs $4. I'm going to automatically charge you as if you are buying the 12-pack." ?!?
    You end up calling Europe 10 times this month because your uncle has fallen ill. The costs are astronomical. Do you expect your phone company to step in and say, "Well if you had only adopted our Int'l rate plan for $5/mo, you would have cut your bill by 90%. In fact, we are going to ASSUME that is what you would have wanted to do, so we are AUTOMATICALLY signing you up for this OPTION and knock your bill down AS IF YOU ALREADY had this option." ?!?

    The fact is that even if a company is trying to save a customer money (questionable why it should) IT CANNOT ASSUME that you would have wanted to add a feature option like unlimited SMS for $10/mo as a continuing monthly cost, which often comes with CONTRACTUAL OBLIGATIONS. YOU must agree to taking on new services and contracts. I definitely don't want companies adding new options to my service plan without asking me, EVEN if it might save me money FOR THAT MONTH.

    So then, your argument reduces to, "Well companies simply shouldn't charge that much for SMS. They should put a cap of $10-20." Well fine, go ahead and try to convince a company that that is in its best interest.

    The whole issue is Darwinian anyways. People too stupid or undisciplined to regulate their spending NEED to be held responsible for their actions. There is nothing even remotely necessities-of-life about SMS anyways, it is a total LUXURY.