Search By:
Products
Injury
Topic
Company
Industry
AT&T, Verizon, Sprint and T-Mobile may unlawfully price their text messaging services.
Investigation Source
- Nationwide
Investigation Scope
Category Information
Investigation Topics
- Defective Product or Service
- Misrepresentation
- Unauthorized Text Messages
- Excessive or Unauthorized Fees
Products or Services
- AT T Cell Phone Plans
- Sprint Cell Phone Plans
- T-Mobile Cell Phone Plans
- Verizon Cell Phone Plans
Injury Type
- Monetary Loss
Investigation Details
Investigation and pending class action against AT&T, Verizon, Sprint and T-Mobile on behalf of consumers who purchased text messaging services from the nation's leading wireless phone service providers.
AT&T, Verizon, Sprint and T-Mobile provided text messaging services along with their wireless phone purchase and plans. Approximately 90% of the wireless phone subscribers in the United States purchase wireless phone services, and their text message services, from one or more of AT&T, Verizon, Sprint and T-Mobile. AT&T, Verizon, Sprint and T-Mobile, thus, have great market power in the market for text message services and are capable of combining to increase the market price for text messages to supra-competitive levels. In fact, since 2006, the price of individual text message services has doubled without any similar increase in cost to the wireless service provider. Up until 2006, the average price to send or receive a text message in the United States was $0.10 and the price had remained steady at $0.10 or lower for a number of years when there was more competition in the market. Since then, the price has increased dramatically. AT&T, Verizon, Sprint and T-Mobile have increased their individual rates in lockstep with the other each other, first to $0.15 and then to $0.20.
AT&T, Verizon, Sprint and T-Mobile provided text messaging services along with their wireless phone purchase and plans. Approximately 90% of the wireless phone subscribers in the United States purchase wireless phone services, and their text message services, from one or more of AT&T, Verizon, Sprint and T-Mobile. AT&T, Verizon, Sprint and T-Mobile, thus, have great market power in the market for text message services and are capable of combining to increase the market price for text messages to supra-competitive levels. In fact, since 2006, the price of individual text message services has doubled without any similar increase in cost to the wireless service provider. Up until 2006, the average price to send or receive a text message in the United States was $0.10 and the price had remained steady at $0.10 or lower for a number of years when there was more competition in the market. Since then, the price has increased dramatically. AT&T, Verizon, Sprint and T-Mobile have increased their individual rates in lockstep with the other each other, first to $0.15 and then to $0.20.
Defendant Details
| Name (Stock Symbol) | Brief Description |
|---|---|
| Verizon Communications Inc. (VZ) | Verizon Communications Inc. provides communication services in the United States and internationally. |
| AT&T, Inc. (T) | AT&T provides wireless and wireline telecommunications services globally. |
| Sprint Nextel Corporation (S) | Sprint Nextel Corporation offers wireless and wireline communications products and services to consumers, businesses, and government users in the United States and internationally. |
| T-Mobile USA | T-Mobile USA is the US operating entity of T-Mobile International AG, the mobile communications subsidiary of Deutsche Telekom AG (NYSE: DT). |