Comment Re:How is text messages different than data ?????? (Score 1) 348
And to add to your answer: in GSM systems, SMS piggy-backs on existing required signaling that is needed for identifying when a cell phone comes into a cell tower's signal reach.
So, how much does it cost a GSM provider to provide SMS service on top of cellular? $0.
They expand the radio capability as they get new subscribers, sure... but that's to handle additional phone calls.
There is no such thing as a separate cost to expand SMS capability.
Messaging is darn near *pure profit* for a telecom company.
Whether I send 0 messages, 10 messages, or 1000 messages... it is opportunistic sending (meaning, if all the channels capable of transmitting that data are currently occupied, then my phone waits until the next round of signaling.) This is why messaging isn't guaranteed to be instantaneous.
Most users assume the other person is a little slower to respond, but that isn't always the case.
My personal hope is that, with this type of revenue/cost disparity, these companies are at least using the extra money to subsidize other services (eg, making phone minutes cheaper because, frankly, those *are* tied directly to equipment/operational costs).
Guess that's part of the "secret formula" for how to be a profitable telecom company.