DISQUS

VentureBeat: Twitter kills SMS service in some countries over costs. Will someone kill SMS already?

  • deprimer · 1 year ago
    Carriers won't kill SMS for a very long time. Who wants to kill the goose that laid the golden egg? It's a significant part of their ever shrinking ARPUs, and outside of the US, where phone calls are far more expensive, it's the primary means of communication for most people on a daily basis.
  • MG Siegler · 1 year ago
    Yep, as I said, won't happen anytime soon, but eventually, if the carriers don't rope it in all under data. It will have to die.
  • Tom Sheahan · 1 year ago
    This article was written by uninformed American.

    1. It is free to receive SMS in ALL countries, except the US. Most operators only charge for sending, they can be inclined in your plan or you can opt for cheaper bundles.
    2. With the US mobile numbering scheme senders cannot discriminate from a fixed line from a mobile.
    3. There is legislation in front of Congress, which they will address after the beginning of the year to stop US mobile operators from charging users to receive SMS. The operators are allowing free email-to-sms gateways to spam their customers, since the operators make money by charging a recipient.
    4. Twitter cannot change the billing model of 3.3 Billion users on the planet. Twitter who???
    SMS is expected to double in the coming years. It is cheap. It works and you can communicate with 3.3 Billion devices --- The PC can’t match that.

    BTW, the US was the last country to deploy universal SMS in the world. The first country to allow SMS from GSM to CDMA was Telstra in Australia in 2001.
  • Alex (send SMS from PC) · 1 year ago
    Wow... I guess it's not surprising, unless you wanted to receive a short advertisement attached to an SMS update from Twitter.

    Why not to add this as an option, btw? Gazillion of "free" online SMS services already do that with some success... it would probably work for some users.

    There's no free lunch out there, folks :)
  • John Biesnecker · 1 year ago
    In Shanghai, through China Mobile, SMSes cost 0.1 RMB (about US$0.014) each without any plan, and there are a ton of prepaid options that reduce the cost per message down to fractions. International SMSes are more expensive, though, so I never bother with Twitter's SMS functions. The mobile web interface works great for me.

    Carriers won't kill SMS, but phones with IM and Twitter clients and always on, unmetered 3G connections will. It's just a matter of time.
  • Mike Butcher · 1 year ago
    If "the future of Twitter is mobile" why kill of the most wide-spread mobile service there is on the planet? Duh.
  • MG Siegler · 1 year ago
    Because SMS is ridiculously cost prohibitive, as Twitter is now finding out. SMS won't die off anytime soon, but I do think we will see a move to unlimited plans bundled the everything else, and eventually it will all come under data. If that doesn't happen one of the other messaging platforms will kill it.

    I understand that all-inclusive data plans are ubiquitous yet, especially in Europe, but they will be at some point in the not-too-distant future.

    Just because something is widespread now doesn't mean it will be in 10 years at the rate technology, especially mobile technology is expanding. 10 years ago everyone I know didn't have a cellphone, they had a pager.
  • Benedict Evans · 1 year ago
    This isn't so much the tail wagging the dog as the flea wagging the dog. SMS is a very widely used service - far more widely used than email, incidentally - with a pretty well established pricing strucutre. So it breaks an option Twitter would like to implement? SO WHAT!

    The whole 'SMS isn't much data so it should be free' argument is frankly pretty stupid. You don't argue that the marginal cost of a DVD is $0.05, and therefore no DVD should sell for more than that, do you? Mobile operators have a very real and substantial cost base to cover, and it is inane to try to cherry-pick parts of their price plan and argue about the unerlying cost of delivering this or that option.
  • perilla · 1 year ago
    Twitter is not mainstream. It can't thus kill SMS. Only in societies/nations where it gets mainstream, and by that I mean everyone from children to old people using it for daily communication (just like it is with SMS all over the world - in some places in Africa this is the only way to communicate), will the position of SMS be challenged, and even then all advantages of Twitter(or any other such contender) must be obvious to those using SMS so that a shift can happen.

    To be able to benefit fully from all Twitter offers, one must possess a rather above-average mobile phone, yet another obstacle for mainstream usage until current gadgety mobile become cheap enough.

    And of course operators won't kill SMS service which is a major cash flow income for many.

    All in all, Twitter is so far a niche appealing to tech audience and in my opinion far from challenging SMS especially in developing parts of the world.
  • MG Siegler · 1 year ago
    Right, I never said Twitter was going to kill SMS, this just accentuates the problem of SMS -- it's ridiculous cost. Something will kill it if that isn't fixed. Which I think will happen and soon (within the next couple years).
  • MG Siegler · 1 year ago
    No because there is professionally-produced content on those DVDs. You're paying for that not the physical DVD.

    I think a lot of times people have difficulties looking past the present, so I'll repeat. Think of where we were in 1998 with mobile technology. In 2018 do you really think we're going to be paying 20 cents to send 160 characters? No.
  • perilla · 1 year ago
    I totally agree with you on the future scenario. SMS was, by the time of its inception, a major innovation, a breakthrough, with just as prohibitive a cost and low awareness among mainstream as perhaps Twitter is today. So the future scenario of having a Twitter-like application fully replacing SMS is of course not a question. Question is when this will happen, and that will largely depend on the pace with which online communication will become mainstream and widely recognized as standard.
  • Benedict Evans · 1 year ago
    You're missing the point - the price of a DVD reflects the whole cost of the product, including video production, not just the marginal cost of the disk itself. So with SMS - the price you pay reflects the cost of building and running the whole network, not just a few bits of data.

    This isn't really an SMS question - its a segmentation question. MNOs are trying to segment their service according to value rather than raw network capacity measures that consumes don't care about. This isn't entirely foolish - 160 bits as an SMS is worth more to me than 160 bits as part of a 5 meg video. Sure, over time HSPA and LTE will lower the cost level on all of these services, but you will ultimately have to continue contributing a certain average ARPU if you want the networks to exist.
  • nicolesimon · 1 year ago
    Not that I do not agree with the above, but if Twitter does search for a business modell via SMS they do forget that people just needed a push in the mobile data direction. Why should I pay for SMS as part of my plan if I can use data much cheaper? Unless I am on the road outside the country that is - until recently there was nearly no chance to have a decent working data plan in the US by prepaid, but it seems now some popped up.

    Back to Twitter: They do get kick back from the mobile phone companies or hope to be aquired by them - this does requier that they do get a footprint in that ecosystem (not really going to happen) or that they make money otherwhise.

    From early on many people have said that they would pay some amount of money to have certain features and I am sure DM via SMS is one of them - at a decent price. They may not want to go through that process of billing and such but I dont see (other than with advertising) how that should work.
  • andydavies · 1 year ago
    There are plenty of options for Twitter to provide an SMS service that would cover their cost and even allow them to make a profit on it - many companies in Europe offers such services (google SMS reverse billing for examples) and it doesn't require a special deal with the carriers either.

    What twitter's action and this post shows is how little US companies and pundits really understand about the mobile phone market in the rest of the world.
  • David · 1 year ago
    When I got a cell phone in the USA in 1998 - the incoming text meessages were free.

    It's time to go back to that policy. Today mobile operators have created a "strategic" hell with seperate plans and internal P&L's for minutes used talking, lbs, text and data plans.

    This hell is not what consumers want or need for the rapid adoption of these tools to occur.

    http://twitter.com/dalka
  • Timothy McDoniel · 1 year ago
    SMS seems alot more reliable than mobile IM applications so far. I've tried Fring, Palringo, and others and they tend to disconnect frequently and the IM applications also speed up the drain on the batteries. Until these problems are fixed (which the phone companies really have no incentive to do if it takes away from their SMS income), I don't see IM replacing SMS anytime soon.
  • totoro · 1 year ago
    I hope both SMS and MMS die off - both overpriced cash cows for the telcos. Hopefully their core market (teens) will move on as IM and email become more prevalent on handsets.
  • kimbjo · 1 year ago
    The writer of this article is so clueless.

    The world does not revolve around twitter, or twitter users, or silicon valley for that fact.

    Since the dawn of time, some gah gah eyed hero reporter or entrepreneur has tried to play the david vs. goliath game of trying to dis intermediate the carriers, or kill their way of doing business:

    NEWSFLASH the carriers built their own networks. It cost billions to buy the spectrum and operate those things. Their sole responsibility is to their consumers - that means the mass consumers, not the loud 0.1% that use twitter.

    If the founders of twitter didn't realize this would be the obvious end result of their exercise, they shouldn't have ever started to give this stuff out for free.
  • Terry · 1 year ago
    Noobs. Don't write about what you don't know. For starters, SMS can't be evaluated as data traffic. And nevermind that the business model for SMS was always available to Twitter - who could have made some money out of it. But of course webheads know best, as some trillions of SMS go unnoticed by those still talking about "how IM will take over bollox" and still think "SMS and mobile is a teen thingy uberbollox".
  • Daniel · 1 year ago
  • triplex · 1 year ago
    WOW TUR*D boy at it again... carries are not going to let SMS go away so easily so stop dreaming and grow up.