From Internet News:
Herb Kohl, D-Wisc., asked the chief executives of AT&T (NYSE: T), Verizon Wireless, T-Mobile and Sprint why the big four appeared to be moving in lockstep in raising the per-message fee from 10 cents in 2005 to today’s standard rate of 20 cents.
“Some industry experts contend that these increased rates do not appear to be justified by any increases in the costs associated with text-messaging services but may instead be a reflection of a decrease in competition and an increase in market power, among your four companies,” Kohl wrote.
Of particular alarm to Kohl was that the increase “does not appear justified by rising costs in delivering text messages.” Still capped at 160 characters, text messages carry the same modest strain on the networks that they did in 2005.
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