Mike over at Vecosys posits that Twitter is spending in the neighborhood of 115k a month on text messages. When I first read it I figured Twitter was done for, but then I read Pat’s post at Roam4free and he rightly points out that sending SMS messages in the US is free. It costs to receive them. Pat thinks Twitter is more likely spending $25,000 a month, while a much better number is still a boat load of cash to be burning. I don’t think anyone has had a hint at how Evan and the gang at Obvious plan on making money on this. The idea is pretty cool and someone could buy them up simply for popularity of the site right now. How far off are we from ads on the Twitter site? I doubt it’ll come to that. The folks at Obvious seem to subscribe to the build it and the money will come model so I think we’ve yet to see how this will become a money making venture for them, and I hope it does.
Update: I read this on TechCrunch
Currently, it costs a lot of money to launch a start-up in the SMS/mobile space — you have to license a shortcode monthly ($500-$1000/mo), pay a SMS gateway provider, and then pay anywhere from $0.03 - $0.05 per inbound or outbound text message. It adds up. But now, if a start-up chooses to use Twitter as a command line to their web service, it’s free (until Twitter starts charging for it).
If my math is right, and it probably isn’t, that sounds like a lot less than either of these guys figured.
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