Cell Phone Companies Defend Price Hikes On Text Messaging

Texting has gone from costing one-cent to 25-cents in four years.

Texting has gone from costing one-cent to 25-cents in four years.

Cell phone giants denied any conspiracy to purposely raise text message charges at a Senate Judiciary Committee hearing on Tuesday.

NEWS JUNKIE reported on Monday that today’s hearing would seek answers from the cell phone companies on why text messaging prices have gone from costing one-cent to as much as 25-cents in just five years even though transmission of text messages costs cell phone companies less than minutes.

According to report by the Dow Jones Newswire, Verizon, AT&T, and other cell phone companies have been fighting off class-action lawsuits ever since the Senate inquiry started last September by Wisconsin Senator, Herb Kohl. Kohl had written a letter to the wireless giants expressing his concerns that the prices for text messages had been unjustifiably increased by several companies all at once. He stated that perhaps lack of competition had led to the manipulation of prices.

“Text messaging files are very small, as the size of text messages are generally limited to 160 characters per message, and therefore cost carriers very little to transmit,” Kohl wrote in his September letter. “What is particularly alarming about this industry-wide rate increase is that it does not appear to be justified by rising costs in delivering text messages.”

The wireless companies had their chance today to deny Kohl’s claims. Here is a portion of the Dow Jones article on what the cell phone companies said:

Verizon’s general counsel, Randal Milch, said Tuesday in written testimony to a Senate Judiciary subcommittee that there are far more differences in text-messaging prices between wireless competitors than there are similarities.

Claims of price-fixing, Milch said, “are absolutely false.”

AT&T’s general counsel, Wayne Watts, said there was no evidence to suggest that anyone at his company engaged in any inappropriate or illegal behavior.

“Especially in light of this litigation firestorm, we want to make it perfectly clear that AT&T sets the prices for all of its products on a unilateral basis,” Watts said in written testimony.

Watts said that none of the lawsuits allege any specific time, place or people involved in the supposed conspiracy, and he said that most of the lawsuits cite Kohl’s letter as the principal basis for the allegations.

“The allegations in the complaints are patently false,” he said.

It’s unclear what the outcome of the hearing will be, but NEWS JUNKIE will keep you posted.

dolores@newsjunkiepost.com

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6 Responses to Cell Phone Companies Defend Price Hikes On Text Messaging

  1. Pingback:

    Vote -1 Vote +1Cell Phone Execs Will Face Questions On Text Messaging Price Hikes | NEWS JUNKIE

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    Vote -1 Vote +1Cell Phone Companies Defend Price Hikes On Text Messaging | NEWS … | Mobile Phone Street

  3. Vote -1 Vote +1Doug S
    June 16, 2009 at 5:44 pm

    The Senate Judiciary website has a video of the whole proceeding. Note that it doesn’t really start until around 15:00.

    Watch the part where the Verizon Lawyer states that the price of text messages has really dropped from 3 cents to 1 cent and that Consumer Reports says that their customers are happy.

    http://judiciary.senate.gov/hearings/hearing.cfm?id=3917

    (click webcast, forward to 15:00 to get to the live part)

    @DougRandall

  4. Pingback:

    Vote -1 Vote +1Lawyer in text offering legal service to those suffering from asbestos cancer

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    Vote -1 Vote +1Cell Phone Execs Will Face Questions On Text Messaging Price Hikes | NEWS JUNKIE POST

  6. Vote -1 Vote +1Wang
    June 23, 2009 at 3:29 pm

    The cell phone companies have no good defense(s).
    _______________
    SCANDAL! SCANDAL! SCANDAL!

    EMERGENCY! EMERGENCY! EMERGENCY!

    George W. Bush continuously criminally stalked Margie Schoedinger to the point that she could not get away from it, and she committed suicide in desperation to escape: he murdered her.

    “In her suit, Margie Schoedinger states that George W. Bush committed sexual crimes against her, organized harassment and moral pressure on her, her family members and close relatives and friends. As Schoedinger said, she was strongly recommended to keep her mouth shut. . . . Furthermore, she alleges that George Bush ordered to show pressure on her to the point, when she commits suicide” (blog of drizzten).

    “One of those ‘very leasts’ [was] George Bush’s personal complicity in the death (murder to be precise) of my friend Margie Schoedinger in September of 2003. Determining the exact whereabouts and contacts of [then] president-elect George Bush on September 21 thru 22, 2003, should be entirely lacking in difficulty” (Leola McConnell—Nevada Progressive Democratic Candidate for U.S. Senate in 2010).

    McConnell is correct: Bush applying pressure (continuously criminally stalking Margie Schoedinger) purposefully to force Schoedinger to commit suicide does in fact constitute murder where it culminated in her death.

    Bush is a racist hate criminal and hates black people (please feel free to see my “GEORGE W. BUSH IS THE WORST PRESIDENT IN U.S. HISTORY” blog). (Schoedinger was an African-American woman.)

    BEWARE: If the president of the United States hates one—for whatever reasons—he can continuously criminally stalk one to the point that one cannot get away from it, and one ultimately commits suicide in desperation to escape. He can murder people in this way.

    Bush is getting away with his murder of Schoedinger—with no sheriff, prosecutor, or court willing to uphold the rule of law.

    Bush’s method of murdering Schoedinger cannot exist in a vacuum: he must have murdered other people in the same way.

    Bush should confess, come out with the names of all of the people whom he murdered in the disgusting way he murdered Schoedinger, undergo execution, and accordingly find himself at the intersection where he would be free.

    (There are thousands of copies of the information above on the Internet. It exists very extensively in all major search engines. Please feel free to go to any major search engine, type “George W. Bush continuously criminally stalked Margie Schoedinger to the point that she could not get away from it, and she committed suicide in desperation to escape: he murdered her” or “Bush applying pressure (continuously criminally stalking Margie Schoedinger) purposefully to force Schoedinger to commit suicide does in fact constitute murder where it culminated in her death,” hit “Enter,” and find innumerable results.)
    _______________
    Andrew Wang
    (a.k.a. “THE DISSEMINATING MACHINE”)
    B.S., Summa Cum Laude, 1996
    Messiah College, Grantham, PA
    Lower Merion High School, Ardmore, PA, 1993

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