Free SMS Don039t Kid Yourself

Apple's announcement of new SMS connectivity in iOS5 was pretty surprising. They have essentially told the carriers that they are no longer needed for chat. This has already been a feature of Android if you used Google Chat but I'm sure this will be the future of all smart phones.

But if you think the carriers are going to lose money, think again. Their revenue stream will just move over to your network data. Expect a 20-30% increase in your data pricing over the next 2 years. Also, expect lower caps with new pricing structures.

If the telcos know anything, it's how to take money out of your pockets.