the value of twitter

Jason Calacanis (someone who i met often back in my silicon alley days even if he wouldn’t be able to remember me from a hole in the ground) posts about his desire for a twitter pro account.  Since the rise of twitter I’ve been researching a number of startup ideas in the sms space and one of the big stumbling blocks is the cost of sending and receiving sms messages.   SMS pricing reminds me of buying bandwidth and hosting back in the 90′s as in insanely high and prohibitive for all but well funded startups – you’re looking at 2-3 cents per msg (sent OR recieved).  Supposedly some of the SMS aggregators as they are called (the guys who handle bulk sms on behalf of the carriers – essentially SMS ISP’s) are now offering flat rate packages in the ten’s of thousands of dollars per month but that’s still cost prohibitive today.

Jason estimates he’s on pace to send 5 million twitter posts/msgs a year (numbers add up quickly don’t they!).  At $.02 per message that would be $100,000!  Jason’s offer of $250 is a bargain for him and likely a terrible deal for Twitter if/when they actually figure out to monetize their sms traffic.  Now I would love to see a $250/yr plan myself because then some of the ideas I am looking into would make great financial sense.

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2 Responses to the value of twitter

  1. Greg O'Byrne says:

    Am I finally old?

    Twitter I don’t get.

    I think one of the other contributors over at techRivet summed it up quite will in this post.

    http://www.techrivet.com/2007/04/06/TwitterDee+No+TwitterDumb.aspx

  2. todd says:

    I was skeptical of twitter at first but you have to remember our generation (greg are both mid-30 guys) is the email/desktop pc generation. Folks under the age of 25 are im/sms/mobile device-centric. Twitter is a perfect social networking platform for that generation.

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