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Will Verizon’s New Three-Cent Hike Kill SMS Services?

October 12th, 2008 at 1:30 pm

Source:TechCrunch

On Friday, word got out that come November 1 Verizon Wireless plans to tack on an extra 3-cent charge for every SMS message sent by Web information services to any of its mobile subscribers. That hike will be on top of the 20 cents per message that Verizon subscribers already pay (even those with “unlimited” plans). Thus, in one fell swoop, Verizon is attempting to boost its SMS revenues by about 15 percent.

While it may be good for Verizon, the additional charge is not good for any service that sends out millions of SMS messages each month. The move caught a lot of Internet companies, SMS aggregators, and media companies by surprise. For instance, I asked Twitter co-founder Biz Stone what impact it would have on the micro-blogging service, which lets users keep up with every Tweet they follow via SMS, and he didn’t know:

We’re still investigating with Verizon so I don’t have a definite answer for you right now.

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