Resonate Blends Inc (KOAN)

[bluegloop]

First person that knows how AT&T pulled this off 7 years ago @ 65,000 texts per second on their network gets the cigar!

AT&T: 65,000 SMS Sent Per SECOND
Again, nice profit stream ya got there, hoss.
by Karl Bode
Thursday Jul 02 2009 13:01 EDT

Mac Daily News has posted a leaked memo from AT&T proclaiming that the iPhone 3GS generated the best ever sales day for the company. More interesting perhaps is this little nugget: on the day Michael Jackson died, AT&T set a high SMS messaging record with 65,000 text messages sent per second. Given we've talked about how each 160 byte SMS is carried on an unused channel and costs virtually nothing to provide, 65,000 times twenty cents (in both directions) would generate just mind-boggling profit for the carrier.
Yes, that's the maximum theoretical revenue, and AT&T offers text bundle plans, which the carrier says justify the 200% hikes on stand alone SMS the past two years. Still, even when considering SMS at a number more realistic for bundle plans (like six cents per text), you're talking about stunning net profit per hour, day, and year. It's all something to be considered every time the carrier whines about how current pricing models or other restrictions make it hard for the carrier to upgrade its networks.
That said, uneducated consumers seem willing to pay these high prices, which puts the onus on users to realize they're being ripped off. As networks get more open and mobile devices and communications options mature, SMS will likely become irrelevant -- making the entire discussion moot in time.