Commodore64 love, you said
"When you think of it on a kilobyte level it costs us $1.09 per text message Kilobyte. The markup for costs is 7300%."
I'm partially convinced it comes from ignorance rather than a B5 joke or troll. To suggest that phones are constantly texting the tower completely ignores the fact that there is a lot of overhead to carry those 160 bytes. It's not like you can send 160 bytes for free on a cellular system or a wired system for that matter. Signalling to page the phone and establishing connections and packet headers for those messages are not free. Due to mobility the overhead is much more than a wired system. If you had ever read the various cellular standards, you would realize the complexity involved in texting 160 bytes of data.
In GSM/GPRS/EDGE systems (1G, 2G, 2.5G) text messages are carried as a single voice frame. It takes a large amount of signaling overhead to locate the handset and route information to it. In fact, to send 160 bytes of text takes the same overhead as a call setup and release and endless location updates.
In UMTS/HSPA/HSPAplus systems/LTE (3G, 4G) text messages are carried as packets. It still takes a large amount of signaling overhead to constantly track the handset and route information to it. To send the 160 bytes requires packet headers for each of the layers and many more packets just to set up the data transfer. Consider that TCP layers have to be brought up to exchange two layer three packets that carry the 160 byte payload. The messages that are constantly sent to track the phone. Those are signalling overhead.
It's very difficult to compare a data connection being used to carry a 160 byte text messages with a data connection being used to carry a huge payload such as a huge JPG, MP3, etc. A 160 byte text message is dominated by signalling and setting up of various data layers. Downloading an MP3 song is dominated by the data payload.
The rates are outrageously high for the minuscule data passed due to the large overhead involved. It's like asking UPS or FedEX to ship an air sample across the country for free. Afterall, air is free!