How Phone Companies Rake In Profits With Texting

Be careful how much talking you do in this free country because you might talk yourself out of house and home if you prefer to do most of your talking on a cell instead of face to face. If you have a cell phone and can use it to send text messages and you are on a per-text plan with your phone company you may already have some idea of this, especially if you have got teens in the house. The profits that the phone companies make are huge. On some plans they can charge about 20 cents per text to either send or receive a message. The actual cost to them to send a text is less than half a penny. The reason its so cheap to the phone company is because the amount of information that is being transmitted is very small. To give you an example to compare it to a 1 minute phone call on a cell phone uses up the same amount of a network as 600 text messages. All the major carriers all do the same thing at the same time it seems including raising prices. When one company raises its prices the rest usually follow suit within weeks or months of each other. This has been referred to as lock step price increasing. Phone companies now charge about 4 times what they did less than 4 years ago. Unlimited plans are without a doubt the best way to go but you are going to take a beating on those as well considering how little it costs the phone company to provide you with the service.