Verizon Wireless Levies New $.03 Per-Text Fee On Content Providers

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verizon-logo.gifHere's some fresh fodder for those concerned that the carriers exert too much control over SMS. Verizon has informed content partners that it will levy a $.03 charge for certain messages sent to customers. The fee applies to things like SMS-based search and text alerts. RCR Wireless, which obtained a copy of the email sent to partners, gives some suggestions for who is likely to be hit:

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. The new fee could even impact the political arena, where high-profile candidates such as Barack Obama are using text messaging to woo voters and keep supporters informed.

RCR calls it a "major precedent", and you have to think that if Verizon can get away with this, with limited repercussions, its competitors will be tempted to stick their hands in the same cookie jar.



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15 Comments

eso said:
This is an outrage, it will monopolize the mobile platform to let only the big dogs play, like google and microsoft. Companies like 4INFO and Cellfire are working hard to pioneer mobile marketing already and small start-ups like ChaCha will not have a chance to let their innovations shine.

EPS said:
It seems like Verizon is having overload issues on its network- they first attempted to limit usage by eliminating notifications (which essentially send out a second message, doubling congestion) but had to back down, so now I guess they're trying to increase capacity by limiting commercial messages with this fee. I don't know too much about how SMS works on CDMA networks, but it could be that expansion of capacity is impossible in this case.

Erik said:
This can totally kill an industry.

VZW is run by fools.

Joe said:
I don't think this is purely a financial issue. Verizon is once again trying to limit free speech. A year ago they censored pro-choice text messages (http://www.nytimes.com/2007/09/27/us/27verizon.html?ex=1191556800&en=8cd47f5afdf1d768&ei=5070&emc=eta-1 ); now they are making it increasingly difficult for non-profits to communicate with their members. I wonder whether Verizon would have made the same decision if the McCain campaign were as adept at using text messaging as a political tool?


dean collins (URL) said:
Basically Verizon have slammed shut the SMS industry in the USA.

Yet another example of dumbass dinosaur carrier mentality. Sooner they all die out and get turned into fixed flat rate ip pipes the better.


Cheers,
Dean

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Robert (URL) said:
Boy these guys really know how to kill the golden goose. In no other country do wireless carriers wield so much power. The trouble is, Washington keeps propping up carriers with all their idiotic regulations just so they can maintain a cozy relationship for illegal wiretapping!

Mike V (URL) said:
just use sites like jygy.com that lets you text anyone in the US for free..

no fees ;)

Erik Schwartz (URL) said:
VZW seems to be walking it back a bit and hedging.

http://www.mobilemarketingwatch.com/verizon-digs-itself-deeper-with-sms-statement/

Bruce L said:
It seems to me that Verizon is admitting to violating its users privacy by reading their text messages. What business is it of Verizon who sends its users text messages and what those messages say? If I’m working on a car or property deal and my Realtor or car salesman calls me about it, does Verizon have a right to listen to the conversation and charge the sales staff or company for calling me? It’s the same thing with a text message. If I opt in for political ads or news alerts or updates on products I am interested in, what gives Verizon the right to listen in on my text messages to determine who is contacting me and whether or not that contact included advertising?

zoey (URL) said:
Verizon Imposes New SMS Tax642-812Far from it. Who would be so dumb!

jenifer (URL) said:
Verizon Imposes New SMS Tax 噻虫嗪 None of my business. You wanna die?

640-802 Shake like jelly. Work harder.

None of my business. Let me take a look-see. Give me a look. 640-802 / 70-624 / 646-363 / 350-029 / 70-445 / 642-812

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