US Senator puts Verizon, AT&T, others on fire for texting prices

Washington D.C. is look more and more like a high gear school popularity competition where everyone dresses in expensive suits and drives around in luxury cars provided by tax-payers, doing whatever they tin to get as many citizenry to think they’re “cool.” And, just like high gear schoolhouse, the kids on Capitol Hill tend to flock to the same fads. Which isn’t always a bad thing. The latest fad seems to be all about consumer protection from radio manufacture giants like AT&ere;T (NYSE: T) and Verizon (NYSE: VZ) Wireless. Thomas More specifically, our politicians ar apparently becoming more and more concerned with consumer selection, carnival pricing and competition in the US wireless market.

US Senator Herb Kohl (D-Wisconsin) has asked that the Federal Communications Commission (FCC) investigate the fight of the US radio marketplace. As chairman of the United States Senate Judiciary Committee’s subcommittee on antitrust, contention insurance policy and consumer rights, Senator Kohl is concerned that the 100% increase in the price of SMS textual matter messages from 2006 to 2008 mightiness be “the result of a deficiency of contention” in a wireless eco-organization where ninety of the market is controlled by a select few – Verizon Wireless, AT&ere;T, Sprint (New York Stock Exchange: S) Nextel and T-Mobile River (NYSE: DT) United States Army.

The issue at helping hand is whether the Big Four radio carriers, especially AT&T and Verizon Wireless, violated anti-trustingness laws by colluding to increase SMS textual matter content prices over the days. On the surface, that does indeed seem to be the case. All four major US wireless carriers rich person increased the price of their text messages from 10 cents to 20 cents. But, Verizon Executive VP and full general guidance Randal Milch denies any connivance – pointing out that carriers offer different pricing for prepaid plans.

Both AT&T and Verizon Wireless defended their position by noting that only a small share of their customers (Revolutionary Organization 17 November) were affected by the textual matter message monetary value step-up. Most textual matter message customers opt for text messaging bundles that crack cut-rates on SMS messages. Big Blue and Big Red River say that just 1% of all textual matter messages sent through their networks ar not tied to text electronic messaging plans.

More competition is always good for the consumer. And, it’s important to ensure healthy competition in a market that’s controlled by just a fistful of huge companies. With a little luck, the past few years of political posturing will hold consumer rights at the forefront of United States Congress’s docket (but not ahead of the economy, of course).