Monday, 26 July 2010

The Purest Form Of Profit The World Has Ever Seen!!

Text messaging has been commonly regarded as the Saviour of the mobile networks. Originally taking off when Pay & Go was leading the way and cross network calls were extremely expensive.

Texting (or SMS) was seen as the cheap alternative to calling people on a different network. A 10p text was certainly more appealing than paying 35-40p for a call. We could also debate that it is also a very expensive way to ask the most frequently asked text question........"Where are you??" or translated, where r u?

With the explosion of data services such as email, instant messaging and social networking, all of which are commonly available on modern Mobile Devices, I have been drawn into a more detailed analysis of text messaging to see whether it has "had its day"!

After looking into this I was drawn to a statement from the CEO of one of the leading world networks. He stated that text messaging could be regarded as the purest form of profit that the world had ever seen. Intriguing I thought..........worthy of further investigation.

What was being implied leads us back to Data, text messages after all are purely a form of data. What I want to know is how much does a text actually cost the network.

A single text is limited to 160 characters - this equates to 140 bytes of data (as a maximum). Of course the average text is not this size and tends to be approximately 35 bytes of data.

So here's the maths!

On average the mobile networks sell bundles of 500MB for an average of £7.50. This means that 1 megabyte of data (1,000,000 bytes) is 1.5p. Do you see where I'm going with this?

If an average text message is 30 bytes, you can send 33,333 texts with 1MB of data - this means a single text message costs 0.00003 pence. An inconceivably small amount of money. Please do understand that I am using resale values here rather than the actual cost to the network.

The Networks charge approximately 10p for a text message so therefore the equivalent cost for these 33,333 messages would or course be £3,333.00.

10p per text?? no I have unlimited texting on my phone! Well, you have to ask your self when the Mobile Networks offer you "Unlimited Text Messaging" for £5 per month why on earth would they add a fair usage policy of 3000 texts??? Please be aware that I do also think that anyone sending anywhere near 3000 texts in a month should have a serious look at themselves and find a new hobby.

Now, with the alternative forms of messaging on the market which charge the user for the quantity of data sent rather than the volume of single messages, I have certainly been asking myself whether Text Messaging really has a future? Based on the figures above, I would have to argue........no!