Are Text Messages an Antitrust Issue?  Are Text Messages an
Antitrust Issue?  March 17, 2011 Originally published in The
American Spectator  Text messages are expensive. Most carriers
charge customers 20 cents for every text they send. But the tiny
messages use up only a fraction of a penny's worth of bandwidth.
Why do networks charge so much for something that costs so
little?  Some people think it's an antitrust issue. The Senate
Judiciary Committee's antitrust subcommittee even held a hearing
on text messaging fees. Are service providers abusing their
market power? After all, competitive markets tend to put
downward pressure on prices. But phone companies are charging
more for texts than ever before. And they've been raising their
rates almost in lockstep.  Five years ago, the going rate was 10
cents per text message. Then Sprint raised the price to 15
cents. Competitors could have used their lower prices to lure
away Sprint's customers. They didn't. They raised their prices
to match Sprint's. The move to