How Text Messages work
With 35% of all mobile phone users worldwide being active text messaging users (as of 2003), it is the most widely used mobile data service on the planet (according to Wikipedia).
When a text message is sent, it travels wirelessly from a mobile handset to the closest available cellphone tower. From there it’s transferred via wired connections to the destination tower, then transmitted wirelessly from the destination tower to another mobile handset. Text messages (being only 160 characters in length) are so small that the costs associated with the use of the radio spectrum as well as the wired connections should be infinitesimal.
Additionally, text messages don’t use a dedicated channel while being transmitted to cellphone towers. They piggyback on the ‘control channel‘, a range that’s reserved for initiating phone calls and other handset-to-tower and tower-to-handset communication (the use of this channel is why text messages have a length limit: 160 characters is the maximum size of a ‘control message‘).
This channel is always open and always active between handsets and towers; when mobile devices send text messages they’re simply slotted into any openings available.
Calculating the real cost of a Text Message
A text message can be up to 160 characters (the actual size of messages transmitted over cellphone towers’ control channels are 140 bytes - 160 7-bit characters), and 160 characters equal 160 bytes, one byte per character.
In computer science, the common-use values of bytes, kilobytes, megabytes, gigabytes and terabytes are calculated as follows:
* 1024 bytes = 1 kilobyte (kibibyte) (KB)
* 1024 kilobytes = 1 megabyte (mebibyte) (MB)
* 1024 megabytes = 1 gigabyte (gibibyte) (GB)
* 1024 gigabytes = 1 terabyte (tebibyte) (TB)
To calculate how much an SMS costs in terms of megabytes, you need to divide a single full-length message’s cost by 160 to get the cost per byte, multiply the answer by 1024 to get the cost per kilobyte, and multiply it by 1024 again to get the cost per megabyte.
So, assuming that a message is exactly 160 characters long and the carrier charges R0.74 for it (South African Rands, a rough average of the cost on the South African cellphone networks):
* R0.74 / 160 = R0.004625 per byte
* R0.004625 * 1024 = R4.736 per kilobyte
* R4.736 * 1024 = ~ R4850 per megabyte
Paying R4850 per megabyte for any kind of data, even in South Africa with its ridiculous bandwidth pricing, is ludicrous.
Rest of the article here
We've all know this for a long time but once again just for reinforcement