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AT&T has confirmed that it is removing its $10 texting plan and will now force users who want texting to purchase a $20 unlimited plan. We do the math on how this will affect your wireless bill.

It’s happening again. Mobile phone bills are going up. AT&T has confirmed to Engadget, that a leaked document outlining the elimination of AT&T’s $10 “Messaging 1000″ texting plan, is true. The wireless carrier is eliminating the $10 plan and will force all new subscribers into a $20 “Messaging Unlimited” plan. The Messaging 1000 plan is still available on the AT&T site at this time, but will be removed on August 21. Those who currently use the $10 Messaging 1000 plan will not be forced to change their plan at this time.

“We regularly evaluate our offers and are making some adjustments to our messaging lineup,” AT&T explained. “Starting August 21, we’re streamlining our text messaging plans for new customers and will offer an unlimited plan for individuals for $20 per month and an unlimited plan for families of up to five lines for $30 per month. The vast majority of our messaging customers prefer unlimited plans and with text messaging growth stronger than ever, that number continues to climb among new customers. Existing customers don’t have to change any messaging plan they have today, even when changing handsets.”

We can think of no good reason for this hike, except to enhance profits. Though carriers routinely charge at least 20 cents per text, texting actually costs carriers next to nothing. In reality, sending a text is equivalent to sending a few bytes through the air. If carriers like AT&T wanted to be fair to customers, they would wrap this service right into their data plans, which have also been rising in priceas of late. 

This price hike takes AT&T cell phone bill prices to a new high. Those who use smartphones will continue to take a hit. Now the minimum monthly texting plan is $20, the minimum talk plan is $40, and the minimal usable data plan is $25 for 2GB (we don’t consider the 200MB for $15 plan an acceptable amount of data for anyone actually using their smartphone). Add that up and you have $85 as a base fee, plus about $5 in connection charges, meaning most new users are going to have to pay $90 per month, and up for smartphone service. If you use more than 450 anytime minutes, prepare to pay a lot more, as an unlimited talk plan is $70 per month. 

Minimum monthly AT&T smartphone costs:

  • $40 – 450 minute talk plan
  • $20 – Unlimited texting
  • $15 – 200MB data plan ($25 for 2GB, which is what we recommend)
  • $5 – connection charges (rough estimate, varies)
  • Total: $80 ($90 if you get an actual data plan)
Unfortunately, AT&T isn’t alone in its price hikes. While Verizon remains kinder on texting plans, offering a $5 for 250 texts and $10 for 500 texts plan, it is charging users more for data as of late. Since it moved to tiered data plans in July Verizon now charges $30 for 2GB of data, at minimum. Previously, it was selling “unlimited” data plans at that price. Sprint and T-Mobile currently offer the best all around prices on plans. 

Showing 14 comments

  1. Toby Juan at 10:40am 12th September 2011 I'm now with Fuzion Mobile because I couldn't handle the charges and the changes to my account. I'm not stuck in a contract so if I'm unhappy I can bail without being dinged. I pay $49 a month for an unlimited month to month plan with some Data (and Fuzion says LOTS more Data coming soon!). I prefer using Fuzion and have been with them for a little over a year and continue to use them in the future. I also follow their website and Facebook page to see if their are any new fun things coming. Thought I'd put in the plug because I've been so happy with them.
  2. Damon Schmitt at 9:03pm 18th August 2011 Oh gee, did we just lock you into a 2 year plan with a $300 early cancellation fee? Great, let's just boost the price of your service a bit here.... not that text messages cost us much of anything to transmit, but we have..... research to do, and.... stuff. Yeah, stuff. $20 please.
  3. Jeff Winner at 7:41pm 18th August 2011 Just one more reason why after 12 years with them we are now with Verizon
  4. Michael L.Hopwood at 5:49pm 18th August 2011 iOS5 is right around the corner--they'll be offering their own messaging service--just like BBM for blackberry--to anyone that uses an iDevice (phone, touch, tablet) FREE OF CHARGE. AT&T must be in a rush to charge it's iPhone users more 'cause they're aware that once it's general knowledge, many people will abandon THEIR text messaging services (for the most part).
  5. Lindsworth Horatio Deer at 5:37pm 18th August 2011 SMS uses the Data layer in GSM or CDMA called Messaging links. Effectively slow speed GPRS (Global Packet Radio System). Each SMS max is 120 characters. at eight bits per character, that's 120 bytes or 960 bits. Find out your Carriers Data rates, as SMS and voice are digitized over the same T1 access and you can calculate the actual costs of a single SMS and a package of them. My article gives and example for the island of Jamaica!!http://mythoughtsontechnologyandjamaica.blogspot.com/2011/08/telecom-provider-lime-and-m2m-services.html
  6. Jake Fleshman at 5:35pm 18th August 2011 I still have my unlimited iPhone plan, I was grandfathered in
  7. James Phillips at 5:16pm 18th August 2011 The first company to offer unlimited texts for free will clear up. How much does it cost them to deliver an SMS anyway?
  8. Joe Gomez at 5:05pm 18th August 2011 Sprint is the Way.
  9. Mark Buckawicki at 4:54pm 18th August 2011 communication is overrated
  10. William Grayson at 4:50pm 18th August 2011 i hope sprint gets the iphone,at&t service is just horrible.losing internet and dropped phone calls,doesn't justify the price increase
  11. Daniel Pizarro at 4:50pm 18th August 2011 Its robbery... now that cell phones are the main way of communication they can run away with insanely high prices... ive seen this coming for about 6 years now...im ging back to landlines
  12. Joline J Hunt at 4:44pm 18th August 2011 WTH???? I've been with AT&T too long for em to start changing my plans. First it was the unlimited iPhone plan & now this!! What's their deal??
  13. Mike Dunn at 9:02am 18th August 2011 Great, so not only will my grandfathered unlimited data plan be throttled, but now my texting plan is dying, maybe they will start throttling my texts too! I send a message and it doesn't get there for a day or something. The idea of leaving is getting better everyday, but no matter where I go I'll have to pay more than I am right now... dang it.
    1. Dan Gaul at 6:04pm 18th August 2011 This is one area where I wish the FCC would step in. Not only AT&T, but all the mobile providers in the US over charge for text messaging.
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