Cell Phone News – T-Mobile USA Battles with Short Code Companies

A mobile marketing company called EZ Text has filed a lawsuit against T-Mobile USA, alleging that it has begun blocking EZ Text’s short code service. According to EZ Text, the reason T-Mobile is blocking its texts is because one of EZ Text’s customers helps people find medical marijuana dispensaries in the state of California. “The fact is T-Mobile … put my business in jeopardy without any warning, without any justification, and without any appeal,” said Shane Neman, EZ’s CEO. “It’s like the Wild West out there. You don’t know what the rules are.” Neman says that by blocking its text messages, T-Mobile has put EZ Text at a disadvantage when compared to its competitors. In a separate, unrelated case, T-Mobile has also riled the short code-based search service ChaCha. ChaCha allows users to send search queries in via text message, which are answered by real experts and then returned via text message. ChaCha alleges that T-Mobile plans to charge $0.0025 for each text message aggregators send over its network beginning Oct. 1. ChaCha notes that about 12% of its traffic transits T-Mobile’s network, adding up to about 125 million messages per year. “T-Mobile is a carrier that doesn’t understand the realities of content businesses including Facebook, Twitter, ESPN and ChaCha,” complained ChaCha CEO Scott Jones. If the planned text charges are implemented by T-Mobile, it would cost ChaCha approximately $50,000 per month.

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