Monday, August 2, 2010

Text MESSAGES should be FREE

(Source: http://pinoybiz.blogspot.com/2009/09/does-smart-sun-and-globe-really-love_14.html)

Dr. Giovanni Tapang the lead convenor of AGHAM, explained that SMS or text messaging is an inherent feature of GSM networks and is now carried over in the newer 3G networks.

No additional investment is needed to enable GSM or 3G cellular phone systems to process text messages.

SMS is sent through the airwaves as packets of data similar to the way the packets of data are transmitted through the internet. It uses a small fraction of the capacity needed to carry a voice call.

He pointed out that telcos currently charge of P 10 flat rate for half an hour of data transfer at speeds of 56 to 114 kilobits per second using 3G or GPRS (General Packet Radio Service). Tapang said that it is possible to send the entire text of Dr. Jose Rizal's Noli Me Tangere, consisting of 1.15 million characters, at 56 kilobits per second within 30 minutes at a cost of just P 10.00. Alternatively, this means sending 638 characters a second at a cost of just half a centavo.

A single text message consisting of just 160 characters could zip through a cellular network system in a third of a second at a cost of around a hundredth of a centavo.

From Tapang's analysis, it was inferred that the price of text messages may have been a value arrived at that would compensate telcos for the aggregate system capacity of their used for texting.

If there were no such thing as text messaging and only voice calls were processed, cellular phone companies would have a large excess or unused capacity and this would represent a huge overhead cost for them.

By charging for text messaging, it is possible that they are not only eliminating overhead costs but are also earning huge profits at nearly zero additional cost.

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