Wednesday, October 15, 2008

US Carriers Respond to Rising Text Messaging Rates Concerns

Here's an update to the concerns over the rising rates of Text Massaging that are being charged by Wireless carriers.

A few weeks ago, I made a post about Sen. Herb Kohl, chair of the antitrust subcommittee sending a letter to the four major U.S. wireless network providers. The letter conveyed the senator's and consumer's concerns about the doubling of the rates for sending text messages even though the cost involved with sending them remained constant. The letter was sent ot the offices of AT&T, Sprint, T-Mobile and Verizon Wireless.

Now, these carriers have expressed their response to Sen. Kohl's letter on the doubling of the rates for sending text messages. According to an RCRWireless article, AT&T, Sprint, T-Mobile and Verizon Wireless have denied that anything illegal was involved in the doubling of the rates for sending text messages.

According to the carriers, they have offered competitive bulk texting plans that have actually made the costs of sending text messages more affordable for mobile phone to consumers. They also would like to express that thay have suffered an increase in antitrust class-action lawsuits due to the congressional questions about the rising text messaging charges.

T-Mobile's representative defended his company by declaring that charges for text messages charged by the carrier has even dropped by half. He also expressed that the concerns over the rising cost of text messaging are exaggerated and untrue. Sprint and AT&T have also released public responses to Sen. Kohl's letter. Interestingly, Verizon Wireless requested that its response remain confidential.

The wireless carriers want to make an effective response to the inquiry because a number of class-action lawsuits have been filed against them citing Sen. Kohl's letter as the foundation for the complaints. They want to clear up this problem as soon as possible since text messaging is a major part of their revenues.

Well, I expected the major US carriers to respond effectively to this inquiry. Text messaging has steadily grown in popularityover the years so they have to take it seriously. Of course, the antitrust class-action lawsuits that have been filed against them also needs to be taken seriously. Tune in to this blog for more updates on this wireless contract issue and other related news.

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