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Senator Questions Rise In US Texting Prices
vimm writes "Senator Herb Kohl (D-Wis.) has started an inquiry on the rising prices of text messaging (up 100% since 2005) that has occurred almost in sync with the consolidation of 6 major carriers down to 4. In a letter sent to Verizon Wireless, AT&T, Sprint Nextel, and T-Mobile, Kohl said the increase 'does not appear to be justified by rising costs in delivering text messages.'"
Issues that matter to people will always get raised during election time. The price of gas will drop dramatically pretty soon just before the election and there will not be any connection to world events. It happened times before and will happen again. Everyone knows Oil Industry == Republicans and the easiest way for them to gain favor is to relieve people with lower gasoline prices for a short while.
But these tactics aren't limited to the price of gasoline... we will see more issues like the price of texting or all sorts of other nonsense that people can rally behind. It is unfortunately a part of the game and typically, even though people get excited about the apparent intention to reign in some justice and sanity, almost nothing ever really happens... except, perhaps, additional contributions from the accused industry.
SMS prices are not based on what they cost to deliver they're based on what the market will bear. Downloading an mp3 over SMS would cost over 5 grand.
I'm not sure there's so much collusion as a majority of people willing to pay insane prices for texting, and cell phones in general. I recently found a cell phone bill from about 10 years ago - it was $9.99 per line (times 2) plus tax (I got a local big-employer discount, the regular rate was $14.99 per line). It came with, I think 120 minutes, which is all I ever use anyway. My current Verizon bill is now easily $85/mo for two lines with a basic text package. Sure, there's been inflation, but there's also less competition.
I understand that in countries where the service providers are separated from the equipment providers the competition is fierce. I'm not sure but I'd guess that it's because people can jump from provider to provider on their non-crippled phones.
My God, it's Full of Source!
OUTSIDE_IP=$(dig +short my.ip @outsideip.net)
For other senators, maybe. Look at Khol's record, though, and you'll see he's generally far more pro-consumer protection than nearly any other Senator.
if we'd just established a national telecom network rather than give subsidies to the telecoms so that we can pay for the infrastructure they ream us for using, then this wouldn't be happening.
IT/communications infrastructure is just as important as roads and sewers these days. and there are much more efficient ways of managing our national communications network than the mess of private networks we have right now--which does not give us the benefits of consumer choice, yet still lacks any kind of centralized planning which a natural monopoly ought to have.
if all communications infrastructure could be nationalized, the first thing to do would be to:
compare the progress & development made on the internet/web as an open public communication network with that of our nation's cellular networks. very little innovation or technological progress has been made in cellular technology because these proprietary networks are closed to outside developers. only a small number of handset makers are given permission to build devices for use on these private networks, and the telecoms' tight grip of these networks preclude the possibility of adopting new features.
and since the internet can handle the transmission of digital video, audio & text just fine, there's no point in having redundant communications networks that are dedicated to TV/radio/telecommunication--especially in the case of long distance calls and text messages where telecoms charge extortionate prices for something which costs close to nothing to accomplish through the public internet.
and if cellular networks were converted into municipal wi-fi coverage, not only would it provide ubiquitous wi-fi internet access for everyone, but we'd stop having to pay extortionate rates for cellular data plans. we would be converting a highly specialized network of limited usefulness to a much more generally useful network that can accomplish all of the same things and more.
That's the problem right there. In the US, the person *receiving* the message pays for part of it. In sensible countries (like Australia), the person *sending* the message bears the full cost - there is zero charge to receive a message.
As a result, there is a *lot* less SMS spam in Australia.
Did you know that people sell oil and gold for more than the cost to mine it?
Did you now the Oil companies are watched like hawks for trust violations? and that a large part of oil prices are set by the largest cartel in the world? Hardly a free market.
Did you know that that soft drink you pay $3.50 for at the movie theater costs the movie theater pennies worth of syrup and cold water?
Sounds like vendor lock in, which last time I checked was considered a coercion of the free market.
Did you know that many drugs sold for $10 or more a pill cost mere pennies to manufacture? All you have to do is invest a few billion in finding one that works
NO, bad idiot, read some facts. drug companies spend more on ads then R&D, it's just they get the govt. to strong arm everyone through intellectual property laws to pay more, Complete failure of the free market.
In the competitive free-market advocated by Milton Friedman, not The oligopolistic-market advocated by the modern republicans, the consumer demand and the cost of supply set prices, not the whims of some giant company that has strong armed govt. support and stifled competition.
It's basic morals, universalize the maxim: if every company did the same you'd only have on company left after a while, it would be the one who controlled the food and you'd have to sell your life away for just enough food to survive. It happened in the past, it was called feudalism, and is basically what your view of business advocates at it's extreme.