SMS Pricing Issues

Swiss Consumers SMS Price Complaint - Feb 7 2004

According to a Swiss consumer organisation, Comparis, a lack of competition enables mobile operators to overcharge consumers by 300 million Swiss Francs (approx. 200 million Euros) a year for SMS, reports 160characters.org.

"According to the study on SMS prices undertaken for TV programme "Kassensturz" broadcast on SF DRS, the actual cost to operators of sending an SMS is less than 1 centime.

With a standard price between 15 and 25 centimes, Comparis calculated that Swiss texters spend nearly 600 millions swiss francs a year. When one takes into account the technical costs, that still gives a margin of 1,500% to 2,500% it concluded".

French Fed Up With SMS Pricing - Jan 28 2004

As a result of a complaint from the French prime minister's office, Orange France has launched two new SMS pricing plans that can cut the price consumers pay by 50 percent, reports 160 Characters.

And even though the pricing has come down with these new packages, critics say that by offering different pricing depending whether the message is sent to another Orange subscriber or other operators, consumers are likely to remain confused.

Europe Looks at SMS Pricing Regulation - Dec 2 2003

The French telecoms regulator ART is said to be discussing the potential regulation of SMS pricing with other European regulators according to press reports this morning.

Analysts commented that with operators having held SMS rates up to maximize revenues and with so many people using it, there may now be some political pressure on regulators to intervene.

Norway, Ireland, Netherlands, Portugal and Sweden are also considering regulation. [Telecoms.com]