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Verizon To Charge Content Providers $.03 Per SMS

An anonymous reader writes "It appears that Verizon is going to start double-dipping by charging both consumers AND content providers for SMS text messages. Verizon has informed content partners that it will levy a $.03 charge for messages sent to customers, effective November 1. From RCRWireless: 'Countless companies could be affected by the new fee, from players in the booming SMS-search space (4INFO, Google Inc. and ChaCha) to media companies (CNN, ESPN and local outlets) to mobile-couponing startups (Cellfire) to banks and other institutions that use mobile as an extension of customer services.'"

57 of 260 comments (clear)

  1. email? by mangu · · Score: 4, Funny

    Did they send an email informing everyone of this?

    1. Re:email? by spazdor · · Score: 5, Funny

      If they did, I'm charging them to read it.

      --
      DRM: Terminator crops for your mind!
    2. Re:email? by Ethanol-fueled · · Score: 4, Funny

      They're doing it to raise money to pay for their defense fund when the lawsuits from those angry security professionals come pourin' in.

    3. Re:email? by spazdor · · Score: 4, Funny

      I'll be glad to take your lawsuits, guys! Once we get the new Litigation Surcharge out of the way.

      That'll be 99 cents per dollar that you're seeking in damages, plz.

      --
      DRM: Terminator crops for your mind!
    4. Re:email? by madhurms · · Score: 5, Funny

      More importantly, is it 0.03 dollar or 0.03 cents? :)

    5. Re:email? by maniac/dev/null · · Score: 5, Funny

      they're the same thing, sir.

    6. Re:email? by davester666 · · Score: 4, Funny

      That'll be $1.10 per dollar that you're seeking in damages, plz.

      Fixed it for you...

      --
      Sleep your way to a whiter smile...date a dentist!
    7. Re:email? by kurzweilfreak · · Score: 4, Funny

      *woosh*

      --

      kurzweil_freak

      5th Kyu Genbukan Ninpo/KJJR student

      Be the darkness that allows the light to shine.

    8. Re:email? by Anonymous Coward · · Score: 2, Funny

      No sir, the whoosh is on you: http://www.verizonmath.com/

    9. Re:email? by sexconker · · Score: 2, Funny

      I think you mean .01 cents.

  2. They have it all wrong by Bryansix · · Score: 5, Insightful

    ONLY the sender should be charged for SMS. You can't choose which ones you receive so why should you pay for them?

    1. Re:They have it all wrong by spazdor · · Score: 4, Insightful

      You seem to be under the misapprehension that Verizon has some sort of policy regarding "fairness".

      They also charge you for incoming calls. Even if they're wrong numbers.

      Also I hear that 0.02 = 0.0002.

      --
      DRM: Terminator crops for your mind!
    2. Re:They have it all wrong by svnt · · Score: 4, Interesting

      While we're pony-wishing, I want to be able to choose which companies are charged how much to send me a text message.

      Google-411: $0.00
      Verizon: $1.50

    3. Re:They have it all wrong by spazdor · · Score: 2, Funny

      ...Assuming that you already know you don't want the call.
      I usually don't find that out until after I pick up.

      --
      DRM: Terminator crops for your mind!
    4. Re:They have it all wrong by Fastolfe · · Score: 2, Insightful

      For unsolicited messages, I agree. But what if you're trying to take advantage of a "free" SMS service (like Google)? You're soliciting that SMS response. Why should the content provider pay to respond? They may not be making any money off of that. Making them pay means many of them will simply go away, which I think would be a shame.

      But for all of those "sign up to receive SMS spam from us" services, I agree that there ought to be a way to shift some of those costs onto them.

    5. Re:They have it all wrong by mdmkolbe · · Score: 2, Interesting

      How about this plan: Receiver specifies a white list. SMS from a white-listed sender charges the receiver otherwise it charges the sender. Also provide a way for the sender to check if a receiver has them white listed.

      With this plan spammers gets charged, but you can pay for any opt-in services you want by white-listing them.

      (Yes, I realize how close this is to many e-mail spam prevention proposals. However, I think that since the SMS infrastructure is already doing accounting, this sort of thing might work with SMS where it has failed with e-mail.)

    6. Re:They have it all wrong by ScrewMaster · · Score: 3, Insightful

      Verizon is a CELL PHONE PROVIDER. When you make (or receive) a cell phone call you burn minutes whether you made (or received) that call. Cell phone companies have been double-dipping for decades. This BS is no different.

      Bloodsuckers, all of them.

      --
      The higher the technology, the sharper that two-edged sword.
    7. Re:They have it all wrong by Hadlock · · Score: 4, Informative

      That's a bald faced lie. I've spent countless hours arguing with sprint to even remove the cost of ONE spam text message, let alone wrong numbers. Fuck sprint. I jumped ship the day my contract expired. Good fucking riddance to that garbage company. May they evaporate as the stock market does!!!

      --
      moox. for a new generation.
    8. Re:They have it all wrong by spazdor · · Score: 3, Informative

      ...Which I'll have to spend airtime listening to.

      --
      DRM: Terminator crops for your mind!
    9. Re:They have it all wrong by Ortega-Starfire · · Score: 3, Funny

      >May they evaporate as the stock market does!!!

      I have a new curse to add to my repetoire. Many thanks.

      --
      ---- Liquid was a patriot ----
    10. Re:They have it all wrong by PopeRatzo · · Score: 2, Insightful

      I agree that there ought to be a way to shift some of those costs onto them.

      There is, but it will require a drastic change in the way the FCC does business.

      I'd also like them to require telecoms to post the actual cost I'm going to be charged for a cellular contract instead of the bogus "39.95 per month" that they're currently allowed to advertise.

      --
      You are welcome on my lawn.
    11. Re:They have it all wrong by MightyYar · · Score: 2, Interesting

      I quit because of Sprint's customer service, too. Shame, because I rather liked that weird Sanyo phone that I had.

      For anyone that cares, the customer service rep, and then his manager tried to tell me that it was impossible for me to check minutes on my two phones after I'd been doing it for over a year. Weird, weird, experience.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    12. Re:They have it all wrong by ScrewMaster · · Score: 2, Funny

      Not here in europe. My cell phone provider charges a flat fee (20 euros a month) and I get to call and send how many SMS messages I wish. Well, less than 1500 SMS messages a day.

      Yeah, well, that's all well and good but we have better pizza.

      --
      The higher the technology, the sharper that two-edged sword.
    13. Re:They have it all wrong by Firehed · · Score: 2, Interesting

      Better idea: you're already paying an outrageous amount for data services (yes, voice is data), and as text messages are well under a kilobyte even with various overhead, they should all be free. Period. Even at 1c/1000 messages, they'd still be turning a hefty profit, percentage-wise anyways. If Amazon charges 10c/GB for S3 traffic and doesn't lose money, cell carriers can easily get away with 1c/MB - it's not up to their usual levels of extortion, but it's still basically free money.

      Seriously, data is so damn cheap in absolutely any other market (even in places with stupidly low monthly caps like Australia) but not only will the cellular industry not cut us a break on the service that costs by far the least to provide, but they take that as an opportunity to screw us over the hardest.

      I hope all content providers immediately drop support for sending texts to Verizon customers, with a clear explanation that it's due to their greed. That way they'll lose all of the revenue on both sides, not to mention get all of Verizon's customers pissed.

      --
      How are sites slashdotted when nobody reads TFAs?
  3. Email-to-SMS Gateways? by smclean · · Score: 2, Interesting

    Two Verizon stories in a row, neat.

    Does anything prevent content providers from using the email-to-SMS gateways to send messages for free? I know some companies who do this...

    It requires the customer to tell you their carrier of course, and you need to have an up-to-date list of email-to-SMS gateway addresses for each carrier, but hey, it's free.

    --

    "'Yrch!' said Legolas, falling into his own tongue."

  4. i used to sms a lot by circletimessquare · · Score: 4, Interesting

    but now everyone i know pretty much can email with their phones. and if not, there's an sms-email gateway, where you type their [phone number]@vzw.net or something like that. of course they have to pay for that, but if they reply, it comes in as a regular email, so you don't have to pay anything

    such that i'm thinking of shunning sms use completely

    sms is a wonderfully useful little signalling protocol... if it weren't being milked to death. so it will be discarded from general use, killed off by the phone company

    --
    intellectual property law is philosophically incoherent. it is your moral duty to ignore it or sabotage it
  5. Obligatory Verizon Math Post by dfm3 · · Score: 2, Funny

    So, by Verizon Math, $.03 is equal to $3 dollars, right?

  6. Post Office Tax by spikenerd · · Score: 5, Interesting

    In the 90's there was an email circulating around claiming that the US Post Office was going to charge a fifteen cent tax on every email sent. I laughed myself silly about people that were actually stupid enough to believe it. If it ever happened, I was sure we could just encode emails so they wouldn't recognize them. Now, that I see people are actually stupid enough to *PAY* fifteen cents to send a message over the same lines on which they speak for free, it's not quite so funny anymore.

    1. Re:Post Office Tax by fermion · · Score: 2, Interesting
      If I understand this correctly, this applies to commercial business partners. All that will happen is business partners that no longer find value in the relationship will leave. The analogy would be mass marketers moving from the post office to email (spam).

      I do not see how verizon could bill an arbitrary commercial interest to send a message to a customer on it's network. Even if they did identify the interest, there would be no contract established, so even though they could bill, it is unclear if they could collect. it would be more likely that verizon would get sued for mail fraud. It is like the sigs on some of the posts that read 'by reading this post you agree to pay me $10", except that the sig seems to have some basis in what some software vendors consider law.

      SMS is a profit center and it seems reasonable to push that profit center by asking partners to pay more. It seems reasonable to the consumer because such commercials interests might keep their lists up to date to make sure they are not sending messages to people who do not want them. The only people it will hurt are the commercial content providers, who may find that the promotional agreement with verizon does not have any value. I decided many years ago that Verizon provided me, the customer, with no value.

      --
      "She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
  7. FINALLY! by jskora · · Score: 3, Insightful

    It seems only fair that the senders of messages should be charged regardless of whether they are content providers or consumers. Why should a peer-to-peer twit be charged more than an ESPN score update?

  8. Just crazy... by apathy+maybe · · Score: 5, Informative

    I never understood the "pay to receive" idea in the first place.

    Anyway, in Australia (at least with one of the companies), you have two types of message. The ones that someone sends to you, and they pay for it. Then there are "premium" services (such as weather, news, games whatever), which you pay to request.

    Charging to send AND receive? Greedy bastards should be lined up against the wall and shot.

    Viva le revolution!

    --
    I wank in the shower.
    1. Re:Just crazy... by IGnatius+T+Foobar · · Score: 2, Informative

      I never understood the "pay to receive" idea in the first place.

      Simple, it goes like this.

      In most of the world, cell phones are placed in a different area code (or whatever the equivalent of an area code is in a particular country), and if you want to dial a cell phone from a landline, the wireless carrier bills a settlement fee back to the landline carrier, and that fee is included in the price of a call to that area code.

      In the United States and some other places, they didn't bother to do that. Instead, the wireless networks are overlaid on top of the landline networks, so there's no way for the originating CO in another area code to know that it's placing a call to a wireless phone -- or, even if it does, it can't bill the caller differently because it's in the same NPA/NXX as landline phones. So they came up with the crazy idea of billing the wireless subscriber for all airtime regardless of whether the wireless phone is placing or receiving a call.

      I'd like to see the wireless carriers offer both pricing models.

      --
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  9. cancel your verizon subscription today by blzb · · Score: 5, Interesting

    so now verizon is charging other people money to *call you*. aren't you alrady paying verizon to have a phone number just so people can call you and send you messages.

    you would have to be a real sucker to let verizon charge your friends and associates money to communicate with you, on top of what they are already paying *their* phone company to send the message in the first place.

    1. Re:cancel your verizon subscription today by value_added · · Score: 3, Funny

      so now verizon is charging other people money to *call you*. aren't you alrady paying verizon to have a phone number just so people can call you and send you messages.

      I don't how this differs from the way the real world works.

      Verizon is a Las Vegas hotel room. Blackjack may be included, but the hookers and gratuities to both the bellhop and the hookers aren't.

  10. With email on your phone so common by C_Kode · · Score: 2, Insightful

    With email on your phone so common, why would you even want SMS and all it's limitations and cost?

  11. Another example of US telcos acting dumb on SMS by 99luftballon · · Score: 3, Insightful

    What is it with US telcos and SMS. SMS was an accidental hit in Europe; an engineering tool that people discovered and used free. Now the telcos over there have modest charges for sending it and rake in billions each year. But in the US first they tried to charge for sending and receiving, then massively increased the cost and now this. What is it US telcos have against SMS, I genuinely don't understand?

    1. Re:Another example of US telcos acting dumb on SMS by Anonymous Coward · · Score: 2, Insightful

      nothing, they just charge as much as people will let them get away with. like every other company.

  12. Timing is suspect by RobertB-DC · · Score: 3, Interesting

    I know I need to loosen my tinfoil hat, but the article specifically mentions the Obama campaign's reliance on SMS as an organizational tool. I think it's safe to say that Verizon and its little friends are big fans of the current surveillance-friendly administration, seeing as how the W administration just gave the telcos the world's largest "Get Out Of Jail Free" card with their little "retroactive immunity" bill.

    Verizon couldn't have waited until December? Or November 15? Or November 5? No, they flip the switch just in time to make it more difficult for tech-savvy candidates (largely Democratic, hmmm) to send "don't 4get 2 vote!" reminders to their followers. Obama won't have any problems -- he could likely afford the "Free-2-End-User" service -- but smaller campaigns might have to drop their SMS reminder plans completely.

    Of course, I'm suspicious of the way gas prices suddenly drop in October of years divisible by 4, too. :)

    --
    Stressed? Me? Of course not. Stress is what a rubber band feels before it breaks, silly.
    1. Re:Timing is suspect by xant · · Score: 5, Insightful

      I think it's safe to say that Verizon and its little friends are big fans of the current surveillance-friendly administration, seeing as how the W administration just gave the telcos the world's largest "Get Out Of Jail Free" card with their little "retroactive immunity" bill.

      *sigh* Obama voted for it. (I'm voting for him anyway.)

      Of course, I'm suspicious of the way gas prices suddenly drop in October of years divisible by 4, too. :)

      They drop every October. Every September, too. People drive more in the summer.

      --
      It's rare that you're presented with a knob whose only two positions are Make History and Flee Your Glorious Destiny.
    2. Re:Timing is suspect by CajunArson · · Score: 3, Funny

      Hey Pal! Stop posting facts to counteract Slashdot's Messiah Worship / conspiracy theory groove thing!

      --
      AntiFA: An abbreviation for Anti First Amendment.
  13. Re:Email to Text? by COMON$ · · Score: 4, Insightful
    Ya but dont forget that that e-mail to txt is MORE expensive as you need a data plan. oh and data plans for alltel went up to about $44 a month to match their competitors. Either way the cell companies are gouging us on a service that we already pay for. Check it out:

    You pay a service contract fee for a data line.

    You pay an extra fee for using that data line to send SMS messages

    You pay and extra fee to use that data line to send http, pop, smtp, https traffic

    You pay an extra fee on top of that if you want to use that data line to connect a computer

    All at fees that are going up exponentially while cost per bit goes down for the company, I would love to see those margins. This is what is going to happen to your internet service soon people.

    --
    CS: It is all sink or swim...oh and did I mention there are sharks in that water?
  14. Re:Email to Text? by TheRaven64 · · Score: 2, Insightful

    Most of the rest of the world doesn't charge to receive SMS, only to send it. The receiver's network charges the sender's network a small amount for each one (although the big networks don't pay anything). The only email to SMS gateways either charge money or are run by the networks themselves. A few tried to be bidirectional - receive SMS messages (and charge the sending network) and then forward them to email, but I don't know of any of these that still survive since people only used them one way.

    --
    I am TheRaven on Soylent News
  15. *shrug* vote with your feet by Ritz_Just_Ritz · · Score: 4, Interesting

    As a consumer, there are a number of carriers available. If you don't like Verizon's policies, just switch to one of the other US providers like AT&T/Sprint/T-Mobile. But this fee seems designed to soak service providers to Verizon's customers. They are much more likely to bend over and do some yodeling rather than forego the ability to sell things (or display ads/information) to Verizon customers.

    Just another in the long series of customer unfriendly business decisions made by Verizon's management.

    Cheers,

  16. Re:Email to Text? by GenP · · Score: 4, Informative

    Blackberry on T-Mobile, $55/mo for basic voice and unlimited data, no contract. No SMS either, but that's where the unlimited data comes in.

  17. the only reason to agree by hesaigo999ca · · Score: 2, Insightful

    The only reason I would agree with this model, and with the same model to be implemented into email messages, is to be able to avoid having spam as we know it. Imagine the guy that wants to use someone else's account, it would take very little time if someone charged up a whole bunch of emails even at .0001 cent it would still trigger a flag somewhere that I am being charged for emails I am not making, or that the spammers would have to make a whole lot more money then this to stay afloat.

  18. Re:Yay for double-dipping by mcgrew · · Score: 2, Interesting

    I'm on a Net-10 "pay as you go" minute phone. It doesn't charge me unless I actually read the message; there is a "meter" on the phone's face that tells you how much airtime you have left.

  19. Re:Email to Text? by Drathos · · Score: 3, Insightful

    He's not talking about emailing from your phone. He's talking about sending an email to your phone that gets delivered as a text message. Big difference. There's no data plan involved.

    Verizon will send a text message to my phone if someone sends an email to <my number>@vtext.com and happily charge me for it, even if it's spam. There's no way for them to charge the sender.

    --
    End of line..
  20. Re:Greed by Hatta · · Score: 3, Interesting

    A fair price would be the same as all other data transfers. It's all bits anyway. You should pay the same price for a given number of bits, no matter what protocol you're using.

    --
    Give me Classic Slashdot or give me death!
  21. Re:*shrug* vote with your feet by Ron_Fitzgerald · · Score: 3, Informative

    Unfortunately 'voting with your feet' doesn't work in these instances as all the major players follow suit soon after.

    --
    ~ Ron Fitzgerald
  22. SMS over data connection? by chihowa · · Score: 2, Interesting

    Is there a way to send/receive SMS over a data connection in a manner that preserves all of the customs of conventional SMS (eg, send message to phone number from ordinary phone)? I seem to remember having the choice of using GPRS as the "data bearer" for SMS on one of my old phones, though I can't seem to find it on my current phone...

    --
    If you want a vision of the future, imagine a youtube comments section scrolling - forever.
  23. I canceled by dj245 · · Score: 5, Informative

    I canceled my Verizon Wireless yesterday (for other reasons). If you want out of your contract with no questions asked, print out This page and take it in with you to the verizon office. Tell them this is a change to your contract and that you would like to cancel. Ask them to waive the cancel fee. Done. You even get to keep your phone (they told me to sell it on Ebay). This assumes that you were a customer back in April.

    --
    Even those who arrange and design shrubberies are under considerable economic stress at this period in history.
  24. Article is wrong by Alereon · · Score: 3, Insightful

    This does not affect mobile-to-mobile SMS, consumers will not see any charges (unless the content provider chooses to recover costs from consumers). My understanding is that this fee will be 3 cents for every premium or standard-rated SMS sent from a shortcode to a Verizon subscriber, unless the message is from a non-profit/charity or is "Free to End-User" (whatever that means, I don't know the difference between an F2EU SMS and a standard-rated SMS).

    My biggest concern is that we're not going to be able to stop this, and once Verizon adopts this policy every other carrier will as well. This has the potential to seriously affect the mobile content industry.

  25. Re:Email to Text? by PitaBred · · Score: 2, Insightful

    Seconded. And there's no surcharge for using the GPS capabilities of your device, or for tethering it to your computer as a modem. Verizon nickel and dimes you with all of their "additional" services. The only thing they have as a benefit is better coverage, and that's rapidly waning. I'll deal with not having coverage as far into the mountains as Verizon does if it means I save $50/mo on the same services.

  26. Who started this War? by rcastro0 · · Score: 2, Informative

    This is another chapter in the war between SMS and IM. Which will be won by the latter, I guess.

    Anyway, Verizon is probably reacting to services like this which makes sending SMS from an IM client free. Install an IM client on your phone and you have free SMS.

    In the long run, my guess is, we will be all using IM clients to text each other in cell phones. They will consume (a small amount of) bandwidth from our 3G data plans. They will allow us to communicate not only with other cellulars, but with computers, PDAs, and other network devices. And they allow us to text someone in the other side of the world just as easily as in the same city.

    SMS may be living a brief moment of glory under the sun. Unless, of course, operators decide to charge it more competitively -- soon.

    --
    Quem a paca cara compra, paca cara pagará.
  27. Re:Email to Text? by stabiesoft · · Score: 2, Informative

    T-Mobile lets you change yourNumber@t-mobile.com to nickname@t-mobile. It stopped spam instantly when I did this because I only gave my nick to a few people. Very nice feature. Other providers may do this as well.

  28. Block service to Verizon by FewClues · · Score: 2, Insightful

    If everyone just refused to send txt messages to Verizon users it wouldn't be long before angry subscribers got this idiotic charge dropped or they moved on to another service. I for one would be moving now and not waiting. But then - I have already moved.

  29. Re:Less spam? by 3count · · Score: 2, Insightful

    By far the thing that bothers me most about text messages is paying for the privilege of receiving SPAM. If they pick a price point that puts an end to SPAM then this is a great step. But, I don't suppose that could happen. Given the money they make from the receivers, they'll make an exception for the spammers so they don't cut out that revenue.