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iPhone App Causes Google To Shut Down SMS Service

Posted by kdawson on from the free-as-in-no-longer dept.

An anonymous reader writes "A few days ago, Inner Fence released a paid iPhone app called Infinite SMS, which let iPhone users employ Google's free SMS gateway to send SMS messages without paying their service providers. The resulting surge in traffic on Google's SMS gateway forced Google to block all third-party applications from using the free SMS feature — including Google's own GTalk client."

10 of 420 comments (clear)

  1. Well, by Jurily · · Score: 5, Insightful

    that's what you get for abusing a free service. Happy now?

    1. Re:Well, by vux984 · · Score: 5, Insightful

      that's what you get for abusing a free service. Happy now?

      No. That's what you get for offering a service without a proper business model behind it.

    2. Re:Well, by Ostracus · · Score: 5, Insightful

      that's what you get for abusing a free service. Happy now?

      No. That's what you get for offering a service without a proper business model behind it.

      Hmmm, yes let's all remember that the next time OSS is discussed.

      --
      Shai Schticks:"You don't make peace with friends, you make peace with enemies"
    3. Re:Well, by RichardJenkins · · Score: 5, Insightful

      OSS stands for Open Source Software, not services. Why would you want to remember Google shutting down a free service when discussing open/free software?

    4. Re:Well, by thetoadwarrior · · Score: 5, Insightful

      Making money off of a free service by vastly increasing the cost of running the free service without offering compensation especially when the economy is going to shit.

    5. Re:Well, by digitalchinky · · Score: 5, Insightful

      In all, it probably only actually had a total infrastructure cost of about $15 USD to support every scrap of traffic across every involved SS7 link. (I pulled $15 bucks from my backside, it was likely even less than that) Millions of messages? Billions? Doesn't really matter, these links are up 24/7 anyway, and if they aren't being used then they just idle. Now the phone companies will have you think that every bit is encapsulated in 24 carrot gold, sent through diamond encrusted tubes, and polished brighter than the sun before being given the privilege of hitting the recipients dirty message queue. It very likely cost google a fair chunk of change though, but the phone companies, virtually nothing. SMS is a very tiny and largely insignificant bit of allocated payload riding on the back of the out of band signalling system. What you have here is a cash cow for the telco, nothing more, nothing less. It's pure genius driven by greed.

      Free SMS can actually exist, just so long as the basic fee they charge for the service covers the infrastructure cost to run it each month, then end of story. This is likely not going to happen any time soon, remember, greed, uninformed customer base, cash cow.

    6. Re:Well, by fractoid · · Score: 5, Insightful

      Your obsession with unlimited-service-for-fixed-fee contracts in America is quite frankly puzzling. It's like you have to make every part of your capitalistic society and make it into pseudo-communism.

      It's never going to be possible to charge people a flat fee for all-you-can-use X without the bulk of the consumers overpaying for their moderate usage of X to subsidise the few who exploit the service. This holds for values of X such as bandwidth, pasta, text messaging, icecream, whatever.

      --
      Rampant carbon sequestration destroyed the Dinosaurs' tropical paradise. I'm here to help repair the damage.
  2. Re:Well, Google HAD a business model! by Anonymous Coward · · Score: 5, Insightful

    SMS is very profitable to service providers.

    E.g. when developing SMS games around 2001, the raito of sent/received messages could go up to 4-5 sent by the game server / 1 sent by the user, and the provider would still buy the game.

    Google's model was: enable GTalk and other programs to send SMS-es. The SMS-es are delivered to phones.

    Now Google could allocate free sending quota from service providers telling them that these messages will be answered, and service providers can get their profit from the ANSWER SMS-es.

    Now this where this iPhone program is dangerous to Google.
    It cuts the single source of revenue from the providers: the response SMS could be also throught Google...

    Just my 2 cents...

  3. How is parent insightful when he's wrong? by PopeRatzo · · Score: 5, Insightful

    The people who sold this app were not "charging" anyone for Google's service. Would you say that someone who developed and sold a killer browser for iPhone was "charging" people to use the Web?

    --
    You are welcome on my lawn.
  4. Shame, Shame by bartwol · · Score: 5, Insightful

    Inner Fence *assumed* they would continue to receive a service for which they had no contract and paid no fees. Further, on top of that unsupported and inequitable assumption, they *sold* a product in which they extended *assurances* of continued service.

    Inner Fence now points their customers to Google as being the party responsible for the loss of service. But it seems clear that Inner Fence had no basis for assuring delivery of their service to their customers. They simply took the money, left Google holding the bag, and now dodge their full responsibility.

    Hey Inner Fence...do your customers look like they have the letters S-T-U-P-I-D painted on their foreheads?