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Free texting apps have paid texting plans on life support

Posted on May 1, 2013

heywireIn 2012 more text messages were sent via free texting apps on smart phones than by traditional SMS Text Messaging services, and the number of free texts vs. paid texts is growing at a fast rate. This is a great thing for consumers, but the cell carriers are taking a major financial hit because of it.

SMS text messages have always been a major source of easy profit for the carrier. They cost virtually nothing to transmit but bring in boatloads of cash.

But the immense popularity of apps such as Heywire, iMessage and WhatsApp have cut those profits by huge margins. And the bleeding is likely to continue and even pick up the pace as more users find out about these apps and begin using them.  [Read more…]




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