AT&T’s text messages cost $1,310 per megabyte
- July 1st, 2008
- 46 Comments
Check out the prices for a text message plan on AT&T, the exclusive carrier of the iPhone 3G in the United States. AT&T wants twenty cents ($0.20) per text message if you don’t sign up for a plan. A text message is nothing more than 160 bytes of data. The max is 160 characters, and one character equals one byte of data. Great.
Again, AT&T is charging you twenty cents for 160 bytes of data. To illustrate how absurd that is, consider the following.
If 160 bytes of data costs twenty cents then 1MB (1,048,576 bytes) of data would cost 131,072 cents, or $1,310.72.
In other words, if AT&T charged data downloads at the rate they charge text messages downloading 1MB of data would cost you $1,310.72.
That math assumes you max out each text message you send. AT&T will charge you twenty cents whether you use all 160 characters, or simply write “K“ to your friend. Multiply $1,310.72 by 160 if you really want to freak out. That works out to $209,715 per megabyte. Chump change.
May I suggest everyone complain to AT&T about this? It seems so dishonest, twenty cents for 160 bytes of data.
Other fun: at $5 for 200 text messages you’re paying 2.5 cents per text message. At $15 for 1,500 text messages you’re paying 1 cent per text. All that makes $20 for unlimited texts—when are you ever going to send more than 1,500 text messages in a month?—“seem” like a deal. It’s not.
Bottom line is, AT&T is absolutely screwing each and every one of you with these text messages prices. I don’t want to say they should be free, but there’s no way they should cost what AT&T charges.





Justin Ried (Who am I?)
5 months ago
It’s not how much data ya transfer, it’s how ya use it.
Claudio (Who am I?)
5 months ago
Is there a *good* way to organize such a massive group complaint (please don’t say “Twitter”)? Should we gather at AT&T headquarters with pitchforks and torches? I’d be down for that.
SwissFreek (Who am I?)
5 months ago
1) Stop texting me “K”! Could very well be the best DiggNation moment. Ever.
2) I’m not disagreeing with you, but your math is a little off. 160 bytes is the data YOU are sending, but there’s other data that has to go with it. Timestamp, destination, etc. So maybe a text message is 200 bytes. Maybe a little more. But the basic premise you present is still pretty true: if you send messages without a text plan, AT&T will hose you. If you go over your limit, they will hose you. If you pay a bunch and don’t use what you pay for, they already ARE hosing you. Either way, you get hosed.
J (Who am I?)
5 months ago
Your assumption is that people are rational. No one in their right mind would pay that much but guess what, we do. it is perceived value. Same reason we pay $3 for coffee at Starbucks. Also the same reason, if we could drive across town to save $6 on a $20 pair of earphones we would. If you could also drive across town to save $6 on a $500 suit we wouldn’t. It is all relative and ATT is merely playing on our irrationality. My example comes from a great book, Predictably Irrational.
BTW I’m an ATT/icrack customer and I think it is crazy but you know what…I’m still going to send a text message today.
Pat Hawks (Who am I?)
5 months ago
You’d be surprised how many teenage girls send more than 1500 text messages a month
Steve Jabs (Who am I?)
5 months ago
You’d be surprised how many teenage girls send 1500 text messages in a week or even a day.
DaveI (Who am I?)
5 months ago
A girl our newspaper did a story on sent/received almost 15,000 text messages in a month. That averaged out to about a text message every 2 minutes (factoring in 8 hours of sleep, in which we assumed she wasn’t texting). Text message bill for the month without a plan… $3000.
Aaron (Who am I?)
5 months ago
3 words: Fair Market Price.
Fair market price equals whatever people are willing to pay.
And in this case, almost 100% profit for AT&T / VZ / others.
marc (Who am I?)
5 months ago
the biggest scam of all is it essentially costs them 0. text message are just sent as part of your phone talking to the network. as in, when you phone says to the tower ‘i’m over here’ your pending texts get sent with that handshake
biggest. scam. ever.
Turin (Who am I?)
5 months ago
I remember reading something similar to this article on another tech blog, it costs more to send a data per MB on a cellular network, than it does to send data to the moon (based on NASA predictions). I guess they have to pay for the Champagne at the stock holders meetings somehow.
drwedge (Who am I?)
5 months ago
I’ve been feeling screwed over by AT&T (AKA The Evil Empire) for years. However, what other carrier can you go to that doesn’t do the same thing? Unfortunately, when you choose to have a cell phone, you should know you’re gonna pretty much take it like an inmate.
drwedge (Who am I?)
5 months ago
I’ve been feeling screwed over by AT&T (AKA The Evil Empire) for years. However, what other carrier can you go to that doesn’t do the same thing? Unfortunately, when you choose to have a cell phone, you should know you’re gonna pretty much take it like an inmate.
Josh (Who am I?)
5 months ago
In some other countries, cell phone service, especially text messages, cost a lot more. I think this kind of pricing is simply a reflection of the lack of competition in the US market–you don’t have more than just a few companies to choose from in a given city, and sometimes, there’s only one or two that have decent signal coverage. Because of the lack of competition, they can charge such an exorbitant amount.
Josh (Who am I?)
5 months ago
Sorry, I meant “cost a lot less.”
Peter (Who am I?)
5 months ago
does the fact that sms data is done in 7-bit sequences matter when it comes to cost? er was it 7-byte? i guess i just assumed that difference was why sms was so expensive…no worries tho - me got a SERO plan with sprint - unlim txts (WOO WOO) for NOTHING!!!
Kevin (Who am I?)
5 months ago
In the UK it’s about the same price, but we don’t pay for messages received - that’s the killer! You guys end up paying double, because after all, who ever sends a text message and doesn’t expect one back?
Travis (Who am I?)
5 months ago
I wonder if they are accurate on that sheet, or if they will have the same problem Verizon had with the .20 cents per text on the family plan, that means a buck would get you 500 texts…
Georges (Who am I?)
5 months ago
The math is wrong. SMS are actually 140 bytes of binary data as payload. In the US, it’s using an 7-bit ASCII characters, so you can send 140 * 8 / 7 = 160 characters.
Peter (Who am I?)
5 months ago
so i was sort of close eh?
I dont want SMS (Who am I?)
5 months ago
Is it possible to disable incoming SMS ?
I never send any SMS, and don’t want to receive any.
Denise (Who am I?)
2 months ago
No, I wish I could turn it off and I’ve asked, but that’s not possible for an individual plan phone or for the primary phone on a family plan. You can turn it off for other phones in the family plan though.
Darnell Clayton (Who am I?)
5 months ago
Dude, quit your whining! If you don’t want it, don’t get the new 3G iPhone!
After all, AT&T is subsidizing the phones by $200 (or more), so they are already losing money from the very beginning.
There is no such thing as a free lunch. That’s how capitalism works.
If you don’t like it, move to North Korea where the state “provides for all you needs.”
Reply
Chris Taylor Jr (Who am I?)
5 months ago
Ahhh WRONG its not $1310per mb
its only $1310 per mb IF YOU USE FULL 160 characters every time you text. I estimate its more like $5000 a mb based on the average length txt message people send or recieve.
Ie its 20 cents whether you text “ok” or “ok lets meet tonight at the arcade and have dinner afterwards”
Jeff (Who am I?)
5 months ago
The copy editor in me is looking at that image and it says:
.20¢
Technically, that is two-tenths of one cent.
It should be $0.20 or 20¢ if they mean 20 cents.
In which case, that’s quite a deal, I wonder if you could claim truth in advertising and actually get this price.
Linh (Who am I?)
5 months ago
yeah, we know this already, but still use it all up. For the record, this is pretty much how it goes for all the providers. And it’s usually MMS, not just SMS. Not that it makes it any better.
Beta (Who am I?)
5 months ago
I have three teenage daughters. 15,15 and 16. We share an unlimited text plan because if I paid per I would go into the poorhouse. Even one of those 1500 text plans would be a joke in my house.
On average; EACH of my daughters text about 2500 messages a month. One time my 16yo sent/recieved 733 SMS in a 5 day period.
On the positive flip side, they hardly use ANY talk minutes. That in turn means we can share a smaller shared minute plan. 20-30 bucks for unlim text looks pretty reasonable to me.
Tommy (Who am I?)
5 months ago
The mobile operators are charging for incoming (.20) SMS!!! They are keeping their free cellphonenumner@att.net open — they are hoping the spammers start using their free gatways. Either shut the gateways down or dont charge for incoming SMS.
This is EVIL. The FCC should do something!!!
D (Who am I?)
5 months ago
This sucks. Perhaps we should send our sms’s from our pc instead
John (Who am I?)
5 months ago
True, market conditions dictate the price. And the main reason one texts is because it is as close to private messaging as radio spectrum allows. By private, I mean no one hears you. Best invention for classrooms ever invented.
To Beta, if you want your girls to graduate, close all three accounts now. Since when did we ever believe this habit was an improvement on life?
Beta (Who am I?)
4 months ago
My girls all have 3.8+ GPAs. Excellent scholastic records and very active in many school activities. Anytime I need advice on how to raise my kids though, I’ll give you a shout.
JalanSutera.com™ (Who am I?)
5 months ago
In Indonesia, a carrier named Esia (myesia.com) created a breaktrough. They charge SMS per character. If you send one character, you pay 1 IDR which equivalent with 0.000109 USD. I think this is the fairest price for consumer.
Mike Abundo (Who am I?)
5 months ago
That’s more than the cost of Hubble data transmission.
Brandon (Who am I?)
5 months ago
I’m not a huge apple or at&t fan but i was really considering getting the 3G iphonebecause it has everything I want. The price for the old iphone was great at $59.99 a month. I can understand an extra $10 a month for the 3G phone because you’re getting a better service. But $5 for 200 text messages is a ripoff. Also, why is there no $10 a month text messaging plan? AT&T wants customers to come into their stores thinking their are getting a deal but in the end they are not.
I am now just going to get a Blackberry Curve from verizon. Their blackberry plan with data and 250 text messages comes out to be $75 a month. The 3g iphone plan with 200 text messages and e-mail service comes out to $90 a month. Over two years that is a difference of $360. Add in the difference of phones of about $150 thats a total savings of $510 over the entire thing. Though the Blackberry isn’t an iphone, i just hate being so obviously screwed by at&t.
Bernard (Who am I?)
4 months ago
These days kids blow through 1,500 texts a month and if you ever date one of these younger generation groupies you will certainly be upgrading to the unlimited text package!
Amanda (Who am I?)
4 months ago
You can say all this is a rip off, but consider this -
Building a network is expensive. The cost of a text message to a carrier is much more than just the data cost: add in the cost of a network, maintenance on the network, expanding the network to pay for the loads of people texting and calling, paying for people to answer the phones when you have a problem, saving some cash for lawsuits brought against them, phone subsidization (which is HUGE in the US), and add in a bit of revenue for them… Then take the fact that YOU are willing pay this, along with your phone bill. Why shouldn’t they charge .20 or .30 cents? Leave the US and you’ll EASILY pay more for your voice plan AND your text plan.
Don’t buy it if you don’t want to pay for it.
DaveI (Who am I?)
4 months ago
I agree with your premise, but I still think the cost is unreasonably high for AT&T customers. I resisted texting for a long time because I was really annoyed with the whole idea of THEM charging me for something I never needed. Then I got the LG enV from Verizon. That’s where my story about hating the idea of paying for texting comes to an end.
Joe (Who am I?)
4 months ago
You are all likely too young to remember this but back in the day a pager (send numeric messages only for you young fellas) was something like $10 a month for unlimited pages. Once the price point was set, there wasn’t a chance to charge more. For texting, which is nearly the same thing, they weren’t going to make the same mistake. Cash cow. Same with satellite radio, which has ads now for one of them, should be free to consumers - one listener or a million doesn’t cost them any more. If anything, satellite fees should go down as more people join. Can’t see that happening.
Brett (Who am I?)
4 months ago
I find it funny you are writing this article from your perspective only. I do agree with you that the .20 per text is ridiculous. You mention that the $20 for unlimited texts is ridiculous too. I couldn’t disagree more.
I am very thankful that AT&T has a $20 cap on text messaging. I had to reference my 75 page (if printed) AT&T bill for this one. I average between 1,900 and 2,000 texts per month. Think how much that would be if I didn’t have the plan. That’s $400 in texting alone. Thanks AT&T for saving me money!
Most iPhone users send a lot of data, whether it be internet, e-mail, texting or downloading music from the iTunes WiFi store. Apple hit the nail with the hammer when they marketed the phone to the young consumer at it’s initial launch.
Now it’s time to go after the Enterprise customer. Good luck Apple and AT&T!
manwaterengl (Who am I?)
4 months ago
kitchen white day sun stay yes australia english
sam (Who am I?)
4 months ago
Wow - I didn’t know crunchgear was into directly ripping off bloggers without giving credit. Tisk tisk.
http://gthing.net/the-true-price-of-sms-messages/
Adam Shegrud (Who am I?)
4 months ago
They make plenty of bucks off my voice plan and my data plan, I pay for unlimited data, and that should include txt messages.
For fucks sake I can send an email with essentially unlimited char. and it cost me nothing. but I want to send 15 char. and they want to charge me 20 cents.
Screw that.
Someone needs to write an app for WM6 that sends txt messages to the carriers portals.
P.S.
The math above is wrong (again) texts get charged twice (as was stated above) so its actually $.40 per txt message sent.
Brittany (Who am I?)
2 months ago
This is all wrong. Text messaging charges are not per data they are charged per text message. The only thing that is charged per kb is Internet usage if you do not have a package which is $ .01per kb which can get expensive. If you send a text message without a package it goes by these rates: $0.10 for incoming, $0.15 for incoming and $0.25 per picture message.