The end of Unlimited Text Messaging in Canada

by Rob Walker | July 8, 2008 at 09:23 am
3763 views | 10 Recommendations | 14 comments

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Over 45 million text messages are sent every day in Canada, which hit a record 4.1 billion texts sent in just the last three months.

Now, it seems Canadians wanting to text their friends about a party will have to pay to do it. Two of the major carriers have announced plans to cut the number of messages down and remove any unlimited plans.

However, we also have to consider that after some recent numbers thrown out by a scientist from Britain, who says we pay more for text messaging than it costs to send data through the hubble telescope.
Needless to say, this combined with the news that Rogers wouldn't be providing unlimited data access for the iPhone has caused quite a stir.

Bell Mobility will begin charging 15 cents per incoming text message on Aug. 8. Telus Mobility will do the same from Aug. 24.

Until now, their pay-per-use customers who send messages have been charged 15 cents per message, but it hasn't cost anything to receive them.

If you thought gas prices were rising too quickly, check out what's been happening to text messaging.

Since 2005, rates to send and receive text messages on all four major carrier networks have doubled from 10 cents to 20 cents per message. This percentage of increase is on par with similar price hikes at the gas pump as crude oil prices skyrocket. In 2005, Americans paid on average about $2.27 per gallon for gas compared with more than $4 a gallon today.

Text messaging has ballooned in popularity since inter-carrier service came to Canada in 2002.

In its first year, there were 369,000 text messages sent every day, or 11 million annually. Today, Canadians send 45.4 million per day, according to the Canadian Wireless Telecommunications Association. And cellphone subscribers sent 4.1 billion in the first quarter of this year, close to the annual total of 4.3 billion sent in 2006 and on track to surpass the 10.1 billion sent last year.

“The maximum size for a text message is 160 characters, which takes 140 bytes because there are only 7 bits per character in the text messaging system, and we assume the average price for a text message is 5p. There are 1,048,576 bytes in a megabyte, so that's 1 million/140 = 7490 text messages to transmit one megabyte. At 5p each, that's £374.49 per MB - or about 4.4 times more expensive than the ‘most pessimistic’ estimate for Hubble Space Telescope transmission costs.”
It's one of those industries many Canadians use every day, don't like to pay for, and love to hate.

Now Liberal MP David McGuinty wants to crack down on the cellphone industry, which he says has collected billions of dollars in "misleading" charges over the last 25 years. The Ottawa MP is proposing legislation to ban so-called system-access fees charged by cellphone providers.

McGuinty says 911, overage, data and roaming surcharges can double advertised monthly rates for an industry that's turning a $4-billion-a-year profit.
recommend This comment thread is now closed
0
Jarrett Martineau

This makes me very worried. And I bet Rogers is planning to start charging $15 per txt, just because they can.

mgmirkin
mgmirkin
flagged this story as Good Stuff

at 16:03 on July 8th, 2008

Rob Walker, I like this story. It's good stuff.

Why would they need to hike prices so much? Just to rake in pure profit? Oy!

~Michael

0
Anonymous

Pretty sensationalist. I saw this on the news, and I thought my new unlimited plan might be up. It turns out Telus is only charging for incoming texts if you pay per message (I.E. everyone on a plan still gets free incoming). Incidentally, I also get unlimited data for a pretty good price. Not to advertise for Telus or anything...

azer
azer
flagged this story as Good Stuff

at 22:23 on July 8th, 2008

Rob Walker, I like this story. It's good stuff.

0
Anonymous

Im with Rogers happily on a pay-as-you go plan where its $0.15 to send -- they do not offer an unlimited option for pay as you go customers so Im glad they didnt screw us over.... yet.... kind of scary waiting in limbo..... I hope telus and bell seriously lose a lot of clientele in the meantime to Rogers just to teach them for being so greedy (they either want all our $$ upfront or they want everyone under a plan with them so they can take all your $$ from there with their hidden fees) - I hope this plan backfires on them because in Edmonton I couldnt even get service in my basement suite with telus or bell.... thank goodness Im with the "better" provider.... for now 

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christi_61315

This is my 14yr old daughter who is text crazy. She can text 26,000 times a month. I am so glad for unlimited texting. This phone is attatched to her Hand at all times. She can hold a conversation with you and text me all at the same time..

christi_61315 has contributed a photo to this story.

another.point.in.time
another.point.in.time
flagged this story as Good Stuff

at 05:20 on July 10th, 2008

free text messages for all! freedom! equality!

0
mstrobist

This photo was taken at Yosemite national park. My friend and I were hiking, but my friend kept text messaging girls along the hike.

I proceeded to get a photo of how obsurd it was to text while visiting Yosemite.

mstrobist has contributed a photo to this story.

0
Tomato where her heart once was

Dina Dobkin, 23, sends a text message from a crowded nightclub in San Francisco.

Tomato where her heart once was has contributed a photo to this story.

0
Galen

Kandice, 20, sends a text from beside the Orangutangs at Woodland Park Zoo in Seattle.

Galen has contributed a photo to this story.

0
Anonymous
  1. huhukkk


0
EdV_Photo

I see this a lot while walking the streets in DC, people cannot get away from their cell phones.

EdV_Photo has contributed a photo to this story.

0
QuelleScandal

Will having to pay more for text messages change the new evolving social dynamics? WIll a fighting couple actually have to-gasp-pick up the phone and call each other, rather than send nasty and appalling texts, like in this photo?

QuelleScandal has contributed a photo to this story.

0
bryan upton

Adam just sent a text message. He likes to send text messages often.

bryan upton has contributed a photo to this story.

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