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    Senate Probes Hike in Text Message Charges


    by employmentcrossing

    The nation’s four largest cell phone service providers must explain to the Senate Antitrust Subcommittee why they doubled the charges for text messaging almost simultaneously.

    Committee chairman Herb Kohl, Democrat of Wisconsin, wants assurances from AT&T, T-Mobile, Sprint Nextel, and Verizon Wireless that there is no price fixing going on.

    In a letter to top executives, Kohl wrote, "What is particularly alarming about this industry-wide rate increase is that it does not appear to be justified by rising costs in delivering text messages.”
    The senator also expressed concern over the consolidation in the industry, taking note of the current proposal by Verizon Wireless to take over Alltel.