Text (SMS) Rate to Increase to 20 Cents for AT&T Customers

By Editor Wireless and Mobile News on November 9, 2008 2:26 PM

There is another text message rate increase looming on November 12, increasing the per text (SMS and IM) message to 20 cents, making the increase close to 100% in a few years. One of our writers received the following text message from AT&T for her AT&T GoPhone:

"Text/IM rate will increase on11/12/08 to $.20 per message sent/received. Save with messaging pkg. rates as low as $.01 msg."
When the owner of phone started on the phone a few years ago it was only 10 cents a message and then it was increased to 15 cents to receive a message, earlier this year. While it was remained free to receive messages. If she now, does in fact have to pay 20 cents to receive a message that would mean a 400% increase from when she purchased the phone.

Unfortunately, we were not able to contact tech support to show our outrage today. AT&T wants everyone to sign up for an increased service plan which has been a trend. In fact, it has be rumored that Verzion will eliminate pay as you go features for data and only allow plans.

The AT&T website suggests these additional plans.

200 Messages @$4.99 per month
1000 Messages @$ 9.99 per month
Unlimited messages @ $19.99 per month

US Senator Herb Kohl (D-WI), chairman of the Senate Antitrust Subcommittee, asked the presidents and chief executive officers of the four largest wireless telephone companies to justify sharply rising rates for its customers to send and receive text messages.

He asked for each of your companies to explain why text messaging rates have dramatically increased in recent years. He asked them to explain the cost, technical, or any other factors that justify a 100% increase in the cost of text messaging from 2005 to 2008. He wanted to know why they increased the cost and what was their justification.

Some of the companies answered he and AT&T had this to offer:

"As you probably know, since your letter was made public, 20 class-action lawsuits have been filed around the country against AT&T and other national carriers, specifically alleging price-fixing for text messaging services," said Timothy McKone, AT&T's executive VP for federal relations, in a response.

The problem with class action lawsuits is that they take too much time and parents who will be shocked by their kids text use .

We're going to try to see on Monday, if we can opt out of the increase. If any one has due to disagreement to change of terms. Please let us know. Apparently during the Verizon's text increase in January, the Consumerist noted that stating the increase would have an adverse affect, it allowed some people on contracts to get out of their plans.