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Premium SMS set for price increase

OXFORD, United Kingdom-Content providers looking to launch reverse-billed short message service (SMS)-based services are calling on cell-phone operators to increase the price limits set for each message. U.K. operators are said to be actively considering the request in an effort not to dissuade content providers from offering their services.

While reverse billing has become an established method for charging subscribers for online content, the limit of 3 euros (US$2.93) per message is frustrating some new subscription service providers, especially those offering mobile games, which have to send multiple messages to users to charge more than the current maximum limit. The U.K. Mobile Data Association said all four existing U.K. operators are looking at a range of pricing options, possibly making the limit as high as 10 euro (US$9.75). However, some claim that the operators are dragging their feet over any changes to the established method, given that they potentially earn more revenue from a higher number of low-value transactions than one high-value premium SMS.

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