Congress demands to know why text message prices have skyrocketed
Filed under: Budgets, Extracurriculars, Technology, Recession

Early this week, Sen. Herb Kohl, who chairs the Antitrust Subcommittee in the Senate Judiciary Committee, sent a letter to the big four cell phone providers to demand they account for their outlandish recent price increases on text messages. Since 2005, the price of a text message has doubled to an industry standard of 20¢, and perhaps not so coincidentally, it has done so with all four phone providers: T-Mobile, AT&T, Verizon, and Sprint.
Kohl, a Democrat from Wisconsin, demanded that the cell phone companies show him paperwork about their price structures, including evidence of what made them decide to raise rates in such a dramatic way. The rate hikes, Kohl says, were "hardly consistent with the vigorous price competition we hope to see in a competitive marketplace," and he intends to look into them.
