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Release date 06/16/2009
Washington, DC—Joel Kelsey, Policy Analyst for Consumers Union, will testify today before the Senate Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights on the high price of cell phone texting and other cell phone usage charges. Consumers Union is the nonprofit publisher of Consumer Reports magazine.
Highlights from Kelsey’s testimony are below:
“Wireless carriers have heavily adopted parallel, and increasing, pricing structures to maintain high text messaging rates. Since 2003, the price of text messaging has quadrupled for some carriers. More recently, since 2005, every major carrier has at least doubled the prices for text messaging from ten cents to twenty cents per message. This rising cost in service is a head-scratcher for consumers, because text messaging uses less data than almost any other service on a wireless network. Six hundred text messages contain less data than one minute of a phone call.
“Text messaging files are very small, and the price of their transmission is negligible for the provider. A message travels as a wireless signal from the handset, through the wired telephone networks, and as a wireless signal to the receiving handset. The text message is a free rider…Thus, any revenue received by the provider on incremental text message usage is nearly pure profit.”
The full testimony can be viewed here:
https://www.consumersunion.org/pdf/Senate-testimony-wireless-0609.pdf.
Consumer Reports is a nonprofit membership organization that works side by side with consumers to create a fairer, safer, and healthier world. For 80 years, CR has provided evidence-based product testing and ratings, rigorous research, hard-hitting investigative journalism, public education, and steadfast policy action on behalf of consumers’ interests. Unconstrained by advertising or other commercial influences, CR has exposed landmark public health and safety issues and strives to be a catalyst for pro-consumer changes in the marketplace. From championing responsible auto safety standards, to winning food and water protections, to enhancing healthcare quality, to fighting back against predatory lenders in the financial markets, Consumer Reports has always been on the front lines, raising the voices of consumers.
© 2009 Consumer Reports. The material above is intended for legitimate news entities only; it may not be used for advertising or promotional purposes. Consumer Reports® is an expert, independent, nonprofit organization whose mission is to work side by side with consumers to create a fairer, safer, and healthier world. We accept no advertising and pay for all the products we test. We are not beholden to any commercial interest. Our income is derived from the sale of Consumer Reports® magazine, ConsumerReports.org® and our other publications and information products, services, fees, and noncommercial contributions and grants. Our Ratings and reports are intended solely for the use of our readers. Neither the Ratings nor the reports may be used in advertising or for any other commercial purpose without our prior written permission. Consumer Reports will take all steps open to it to prevent unauthorized commercial use of its content and trademarks.
Consumer Reports is a nonprofit membership organization that works side by side with consumers to create a fairer, safer, and healthier world. For 80 years, CR has provided evidence-based product testing and ratings, rigorous research, hard-hitting investigative journalism, public education, and steadfast policy action on behalf of consumers’ interests. Unconstrained by advertising or other commercial influences, CR has exposed landmark public health and safety issues and strives to be a catalyst for pro-consumer changes in the marketplace. From championing responsible auto safety standards, to winning food and water protections, to enhancing healthcare quality, to fighting back against predatory lenders in the financial markets, Consumer Reports has always been on the front lines, raising the voices of consumers.
© 2009 Consumer Reports. The material above is intended for legitimate news entities only; it may not be used for advertising or promotional purposes. Consumer Reports® is an expert, independent, nonprofit organization whose mission is to work side by side with consumers to create a fairer, safer, and healthier world. We accept no advertising and pay for all the products we test. We are not beholden to any commercial interest. Our income is derived from the sale of Consumer Reports® magazine, ConsumerReports.org® and our other publications and information products, services, fees, and noncommercial contributions and grants. Our Ratings and reports are intended solely for the use of our readers. Neither the Ratings nor the reports may be used in advertising or for any other commercial purpose without our prior written permission. Consumer Reports will take all steps open to it to prevent unauthorized commercial use of its content and trademarks.