Free SMS On IPhone 3G Via AOL IM Client

Glenn Fleishman writes "Jeff Carlson has discovered that you can bypass the 20 cent per message or $5 to $20 per month fees for SMS (text messaging) with the iPhone 3G and AT&T by using AOL's downloadable instant message client for iPhone 2.0, which is free. Just like the full-blown AOL IM system, you can add buddies that are the phone numbers of cell phones you want to send SMS to, and you establish a two-way conduit. The recipient still pays for SMS (if they have a fee) on their end, but if it's another iPhone user, you could coordinate with them via SMS to use instant messaging instead."

Comments

Why hasn't a provider made SMS free yet?

[Anonymous Coward]

It seems like in this semi-competitive market, one of the providers would've made the unusual move of switching to free SMS. I realize it's pure profit for them, but it seems like they could make up the difference with the influx of new customers, and potentially less voice bandwidth usage.

Re:Oh lord

[nbert]

a flat rate system like SMS just isn't going to cut it

Exactly the reason why they offer flat rate services. The more people have data-plans, the less it makes sense to charge for individual SMS'. In the end they will charge 5 bucks for unlimited SMS if you want it or not, because otherwise they would lose that source of revenue while data plans get cheaper and cheaper.

Btw: For the same reason the telcos of many countries refuse to sell you DSL without a telephone line. Voip could fill the void completely and it would be even possible to implement a free system on a global scale, but it would hurt those providing access to voip services and for that reason they won't let you use it exclusively (or at least let you pay for what they don't earn the traditional way). And if you are paying for it anyways there is less incentive to switch to free alternatives.

I love flat rates in general, but sometimes they are just designed to keep the status quo. In the end everything gets cheaper in regards to what we pay per minute, but the bill at the end of the month still is as high as 8 years ago.

Just look at how many households still have a fax machine and you will realize how much pricing is preventing a real step forward.