The Real Cost Of SMS…


Reposted with permission from Mwangy. The original article can be found here…

SMS is a wonderful product/service which is available on all GSM networks. It is a very useful tool that has gained tremendous uptake & has found a myriad of uses both commercial, entertainment wise & as an informational tool.

At the current lowest rate of  3.50/=, it would seem to be a bargain seeing as a few years ago to send an SMS one would have had to spend upwards of  5/=.

What the providers don’t tell us (not that I would if I were in their shoes) is that there is practically zero cost involved on their part when it comes to sending & receiving an SMS on their network.

This is because the SMS does not use the commercial channel/bandwidth that is used by subscribers to make/receive calls and use for GPRS/EDGE.

Simply put the available bandwidth to the subscriber for calls/data is a fraction of the actual bandwidth allocated by the governing body ie CCK.

The rest of the bandwidth is reserved for behind-the-scenes communication between the users mobile phone & the nearest cell tower.

This is the bandwidth that SMS uses.

It thus uses network bandwidth that is already dedicated to communication between the phone & the cell tower that the subscriber is currently in & thus incurs no more costs to the service provider other than a storage center for undelivered SMS’s…

This then shows how profitable SMS is & thus the push by nearly all providers to increase the no. of  SMSs that are sent. At 3.50/= per SMS, the profits are 100%…

I heard that CCK were going to commission a study of the real cost of calls & SMS to the providers.

Lets see how that goes…

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