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Re: Congress asks phone companies: Why are text prices rising?
From: David Farber <dave () farber net>
Date: Thu, 11 Sep 2008 10:20:33 -0400



Begin forwarded message:

From: Rahul Tongia <tongia () cmu edu>
Date: September 11, 2008 9:38:03 AM EDT
To: dave () farber net
Subject: Re: [IP] Congress asks phone companies: Why are text prices rising?

Dave,

My general reaction to why companies do this is what is called the Rod Stewart philosophy of why:
Why do rock stars marry supermodels?:
"Because we can"

Unlike Edmund Hillary who said "Because it's there" (why climb Mt. Everest), here companies are manufacturing opportunities. As Odlyzko and others have pointed out, per bit, the profit margin is mind- boggling for text messages. And I still gosh-darn pay for incoming (unlike the rest of the world).

Rahul

David Farber wrote:


Begin forwarded message:

*From: *"Bob Frankston" <Bob19-0501 () bobf frankston com <mailto:Bob19-0501 () bobf frankston com >>
*Date: *September 10, 2008 8:34:17 PM EDT
*To: *"'Dewayne Hendricks'" <dewayne () warpspeed com <mailto:dewayne () warpspeed com >>, "'Open Infrastructure Alliance'" <oia () lists bway net <mailto:oia () lists bway net >>, "Dave Farber" <dave () farber net <mailto:dave () farber net>> *Cc: *"'Seth Elkin-Frankston'" <seth () frankston com <mailto:seth () frankston com >> *Subject: **Congress asks phone companies: Why are text prices rising? *

This could be exciting – does anyone know more about this and about Herb Kohl? Once you start asking questions the industry itself is open to question. Obviously I want to pursue this because perhaps he’s ready for http://www.frankston.com/?name=AssuringScarcity and can recognize the conflict of interest in inherent in telecom as a service business.
http://features.csmonitor.com/innovation/2008/09/10/congress-asks-phone-companies-why-are-text-prices-rising/
Congress asks phone companies: Why are text prices rising?
By Chris Gaylord* | *09.10.08**
With text-messaging rates doubling over the past three years, Sen. Herb Kohl has started asking questions. The Wisconsin Democrat and head of the Senate’s antitrust subcommittee sent a letter <http://kohl.senate.gov/%7Ekohl/press/08/09/2008909B29.html > to the four major cellular companies on Tuesday with some interesting points.
….

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