(2008-12-29) Text Messaging Costs

RandallStross says that Text Messaging has almost no variable cost for the TelCo providers. Perhaps the costs for the wireless portion at either end are high - spectrum is finite, after all, and carriers pay dearly for the rights to use it. But text messages are not just tiny; they are also free riders, tucked into what's called a control channel, space reserved for operation of the WireLess network.


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