AT&T to launch new SMS plans, raise activation fees

AT&T is about to change its messaging plans, though it's unclear why.  It could be about Verizon, especially with competition with that carrier's iPhone. It could also be a response to free text messaging rivals which are intrude on carriers' cash cows. Whatever the reason, it's coming.

The new plans were shown off in a leaked Best Buy image obtained by GearLive on Jan. 19. The two new plans will run $10 for 1,500 or $20 for unlimited. Going extinct after Jan. 23, except for those grandfathered in, are the $5 / 200 message plan and the $15 / 1500 message plan. On that day, AT&T will also be raising its activation fees to $36.

Of course, SMS messages piggyback on top of the control channel, so it actually costs carriers nothing. Despite this, text messages are their cash cow. If people get too used to using some IM service, or even Google Voice to avoid paying SMS fees, it will really hurt their bottom lines.

On the other hand, it's a lot easier to use the regular SMS app on your phone than to use an IM app (which your best friends may not use, anyway).