Running Signal Will Soon Cost $50 Million a Year

fully $6 million annually, goes to telecom firms to pay for the SMS text messages Signal uses to send registration codes to verify new Signal accounts’ phone numbers. That cost has gone up, Signal says, as telecom firms charge more for those text messages in an effort to offset the shrinking use of SMS in favor of cheaper services like Signal and WhatsApp worldwide.

Wtf?

OK, just so we're clear (for those who don't know how SMS works).

SMS shouldn't cost much, at all, since the transport part is integral to cell management. An engineer in the mid/late 80's realized there were unused portions of the management frames and realized he could insert some bits in there and have a process decode on each end. (IIRC this was an unassigned portion of the frame).

Ever wonder why the original SMS limit was 44 characters? Because that's how large the unused portion of the frame was.

Yes, there's an infrastructure cost to SMS (switches, bridges, etc), but SMS never cost telco's even as much as a penny. So when they were charging 10¢ per, they were making 9¢+ per SMS.

Know why they switched to "free SMS" in the US? It's several orders of magnitude cheaper for them to have customers use SMS rather than a phone call (voice connection vs the already-being-sent cell frames).

So they're going to up charge Signal because others are using it less? Seems to me like Signal is compensating (some) for the drop in use by others.

So much BS. Telco's are just mad because they're losing the ability to monetize those text messages, since they aren't encrypted. One-time-use codes don't add anything to their surveillance.

Bastards.

Great article. Thanks, and kudos to Signal for the transparency - it's good info about the comm industry for all us to be aware of.

Seeing how much they're paying for telecom fees I wonder if after they switch to not needing a phone number if that'll go down greatly.