Sorry!! The article you are trying to read is not available now.
Politics And Regulation
Trading And Investing
How To Trade
How To Invest
Wall Of Worry
Hoofy & Boo
From The Buzz & Banter
MV Education center
t3 live subscriptions
Apple, Google Will Soon Cost Carriers Billions
June 10, 2011 11:01 AM
I'd like to make a plea to every smartphone user out there: Stop texting!
Not because social mores define it as rude. Not because it lends itself to "h8ful" phonetic abbreviations. But because there are a multitude of free alternatives to sending a text. And it's unconscionable that companies like Verizon and AT&T charge $0.20 per text -- or $20 per month for unlimited texting -- for a service that costs them next to nothing.
But it would seem y'all are way ahead of me.
According to the Wall Street Journal
, US carriers are noticing a slowdown on texting usage. The wireless industry trade group CTIA reported that cell phone users sent over 1 trillion texts nationwide in the second half of last year. Albeit an increase of 8.7% from the six months prior, it was the slimmest gain since texting became a common practice.
But it's not like people are
talking on the phone
more. There are just too many free texting alternatives at our disposal, with even more on the way. And it's a huge threat to the $25 billion in revenue carriers currently rake in from texting plans.
Apple unveiled iMessage
-- a free messaging service akin to BlackBerry Messenger -- for the upcoming iOS 5. Once launched, users with iPhones, iPads, and iPad Touches will be able to quickly chat and message one another for free, all without relying on a costly texting plan.
Google is also rumored to be debuting a free messaging service for Android devices. While that will also take a chunk out of texting revenue, it does follow the release of Google Talk -- a free AIM-like service for Gmail contacts. And Google Voice, which circumvents plenty of carrier services like Visual Voicemail and Call Forwarding, already offers free texting.
But messaging apps aside, Verizon, Sprint, AT&T, and T-Mobile can't stem the integration of email into everyone's smartphone. Unless those Bill Gates rumors from 1996 are true, email will forever remain free, and smartphones make emailing as easy as text messaging. Plus, you're not limited to 160 characters or a single device to access it.
Cell providers are scrambling to prevent themselves from becoming superfluous middlemen. And while doing so, they're inventing new fees and data caps to keep their exorbitant profits unbelievably high. But hopefully with the decline of texting -- and maybe even some products from the
-- cell providers will start to realize that the users should be in control.
And perhaps then, calling plans will be the unnecessary expense.
Has Microsoft Declared War on Carriers?
Apple's WWDC 2011: iOS 5
For an investment angle on these and many more tech stocks, take a
FREE trial to the TechStrat Report
by Sean Udall.
No positions in stocks mentioned.
MICROSOFT SKYPE MERGER
WAR ON CARRIERS
Wall Street Journal
See All Tickers »
More From Minyanville
Trading and Investing
MV Education Center
Buzz & Banter
Cooper's Market Report
The Options Strategist
Directory of Terms
T3 Live Subscriptions
Buzz and Banter.com
Ruby Peck Foundation
Terms and Conditions
Follow Minyanville on Facebook
Follow minyanville on Twitter
Follow Minyanville on Linkedin
Subscribe to Our RSS Feed
©2017 Minyanville Media, Inc. All Rights Reserved