The Real Cost of SMS

Hello,

SMS is a wonderful product/service which is available on all GSM networks. It is a very useful tool that has gained tremendous uptake and has found a myriad of uses both commercial, entertainment wise and as an informational tool.

At the current lowest rate of  3:50/=, it would seem to be a bargain seeing as afew years ago  to send an sms one would have had to spend upwards of  5/=.

What the providers dont tell us(not that i would if I were in their shoes) is that there is practically zero cost involved on their part when it comes to sending and recieving an sms on their network.

This is because the sms does not use the commercial channel/bandwith that is used by subscribers to make/recieve calls and use for GPRS/EDGE.

Simply put the available bandwith to the subscriber for calls/data is a fraction of the actual bandwith allocated by the governing body ie CCK.

The rest of the bandwith is reserved for behind-the-scenes communication between the users mobile phone and the nearest cell tower.

This is the bandwith that sms uses. 

It thus uses network bandwith that is already dedicated to communication between the phone and the cell tower that the subscriber is currently in and thus incurs no more costs to the service provider other than a storage center for undelivered SMS’s. . . . . . .

This then shows how profitable sms is and thus the push by nearly all providers to increase the no. of  SMS’s that are sent. at3:50/= per sms, the profits are 100%. . . . . . 

I heard that CCK were going to commission a study of the real cost of calls and sms to the providers

Lets see how that goes. . . . . .

  • kipsang

    Mwangy,

    I would like to repost this article followed by a link to your blog for publication on mine.

    Hence this comment to ask your permission to do so.

    Looking forward to hearing from you.

    Regards,

    Mike.

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