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SMS to be Challenged by IP Services

The high profit margins now enjoyed by mobile data providers for text messaging services may be threatened by competing IP based services offered by several new companies, reports MSN Money (via MoCo News). EQO (a Skype to mobile phone application) and Hotxt (a flat fee SMS service recently launched in the United Kingdom) offer new challenges to not only the data streams of major wireless carriers, but also companies specializing in text messaging like SMS.ac.

This looks like good news for would-be consumers of mobile data. It’s only a few short steps from here to data rates that enable cheap mobile filesharing in North America and Europe.

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