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Question: How Much Markup Is In Text Messaging?

I was just sent a link from one of our readers Bitbucket, on how much the markup is on a text message. I know we have all ranted about this before, but if you had to guess, would it be 100%? You aren’t even close. Guess again. 1000 Percent? Still way off. Last chance. Give up? Try 6500% markup on text messages from wireless carriers! Quoted from CNN:

Text messages are short, quick and cheap to transmit. So why are they adding so much to your wireless bill? The messages are such a tiny piece of data that they cost carriers only about one-third of a cent to deliver, according to computer scientist Srinivasan Keshav, who testified before U.S. senators on the issue last summer. But on a pay-per-text plan, the 160-character messages typically cost 20 cents outgoing and 10 cents incoming. That’s a markup of as much as 6,500%. OMG! "It’s pretty much pure profit," Keshav says. "Carriers would argue they put that money toward investing in new technology." Even if customers sign up for an unlimited texting plan for, say, $10 a month, carriers are still cashing in considering that their overhead is basically $0. That’s a lot to pay for a few LOLs.

Want to guess the mark up on pop corn at the movie theater? CLICK HERE


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