Comment by tofuahdude

2 years ago

Why is it that SMS is so damn expensive? (or more specifically, what is it about Twilio et al's businesses that makes them cost so much?)

When you control access to the customer you can charge people a lot. Just like Apple can take 30% primarily because they’re the gatekeeper to iPhone users, telecoms are gatekeepers to their users so they can charge you a lot to text them. You don’t really have a choice. L

In the US, shafting customers as hard and fast as you can is the current business model. What are they going to do? Move to 1 or 2 remaining competitors with the exact same business model?

  • Most of that cost is literally coming from sms outside the us though. The rates for us sms are much lower than almost anywhere else.

Nothing just profit and existing system access costs set by the incumbents.