Monday, August 18, 2008

Twitter Cuts Back SMS

A popular service has hit financial hard times head on, dead on. Twitter has shut down SMS for everyone except users in North America and India. You see, it costs $1000 per user per year to Twitter for SMS costs. OWCH!

Don't be surprised to see advertising on Twitter soon. It's about the only way the service can generate revenue. But will it be enough?

The first round of services hoping to pick up where Twitter left off are already coming on board! TweetSMS first showed its face a few days ago, as profiled on Mashable. The soon-to-launch site promises to send individual, hourly, or daily SMS updates for “a very small fee.” TweetSMS’s site isn’t live yet but indicates it is coming “very soon.” One step ahead, Australian-based TwitSMS made its debut over the weekend and is now fully functional. Founder Jeff Bonnes — a Twitter user himself — said he was annoyed at the discontinued SMS service and decided to take action, piecing his business together with his wife in a matter of days.

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