Monday 25 January 2010

The high cost of SMS in Austalia

So in the last few days there have been TV, radio, paper and Internet stories on the high price of SMS in Australia compared to the rest of the world. I agree, it's really too high for what we get, but I thought I'd try to cover off what it is the way it is?

What a sticky topic to talk about from someone who works for a local SMS provider, who's definitely not the cheapest in the market, nor wants to be :)

I personally think that there are three key reasons why our telco costs in general are high, not just SMS;

1. Our regulators have as many teeth as my dear old granny, who god rest her soul pasted about 15 years a go, and I'm pretty sure she didn't have any teeth then, so probably has even less now.

2. Our largest telco also controls the wholesale market setting prices that allow its retail arm to maximise profitability.

3. We're prepared to pay the price.

It's been a long known truth that Australia has one of the largest mobile penetration rates in the world, we also have one of the highest rates of Internet users per capita and we're generally considered techno junkies - meaning that we h ave a high rate up technology take ups in the world.

It's just my view, but if these three points were addressed I think we'd see a different playing field all together!

Enjoy your Australia Day tomorrow.
C








Google
























No comments: