September 10, 2008

Text-Messaging Rates Come Under Scrutiny

The top four wireless providers in the U.S. are being asked by a senior senator to account for their text-messaging prices, reports the WSJ.

"Sen. Herb Kohl (D., Wis.), who is chairman of the Senate Judiciary Antitrust Subcommittee, sent letters Tuesday to Verizon Wireless, AT&T Inc., Sprint-Nextel Corp., and T-Mobile USA, noting that text-messaging prices have increased 100% since 2005.

"What is particularly alarming about this industrywide rate increase is that it does not appear to be justified by rising costs in delivering text messages," Sen. Kohl's letter said.

Mr. Kohl's letter noted that each company appears to have changed text-messaging rates at nearly the same time, with identical prices. "

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