Verizon Radically Changes Off-Deck Content Model

Wireless content is a micro-transaction kind of game, with content providers typically paying two or three cents per message to carriers for the privilege of sending texts to consumers that return search results, perform billing purposes, enable voting and other off-deck functions typically carried out by SMS. They also make very little on each individual piece of content. But Verizon Wireless now wants to double that SMS fee by charging content vendors another three cents per message.

Verizon may be looking to cash in on the exponentially exploding text messaging phenomenon. The FCC already is looking into other moves by the carriers to “cash in,” considering that rates have gone up to 20 cents per message from just 10 cents in 2005, dubious in some industry-watchers’ views considering that it doesn’t cost any more now to carry a message than it did back then.

The fee is set to go into effect on Nov.1, and content providers say that doubling their messaging overhead either will put them out of business on Verizon’s network or force them to raise their rates for content. A small or non-existent off-deck community or higher content rates are both market-changing outcomes.

Needless to say, the content folks aren’t exactly excited about it.

Share this article: Email, Slashdot, Digg, Del.icio.us, Yahoo!MyWeb, Windows Live Favorites, Furl
Add this article feed to: RSS, My Yahoo, Newsgator, Bloglines

Read Comments [1]