America's Biggest Rip-offs
Are you infuriated every time you open your cell phone bill? Livid when you buy a snack at the movies? These are nine of the rawest deals around.
Text messages are short, quick and cheap to transmit. So why are they adding so much to your wireless bill?
NEXT: Movie theater popcorn - 900% markup
The messages are such a tiny piece of data that they cost carriers only about one-third of a cent to deliver, according to computer scientist Srinivasan Keshav, who testified before U.S. senators on the issue last summer.
But on a pay-per-text plan, the 160-character messages typically cost 20 cents outgoing and 10 cents incoming. That's a markup of as much as 6,500%. OMG!
"It's pretty much pure profit," Keshav says. "Carriers would argue they put that money toward investing in new technology."
Even if customers sign up for an unlimited texting plan for, say, $10 a month, carriers are still cashing in considering that their overhead is basically $0. That's a lot to pay for a few LOLs.
NEXT: Movie theater popcorn - 900% markup