There are 3 countries that offers SMS broadcast to followers: US, India and Canada. Now Twitter is gonna kill-off this feature in Canada.
Not too long ago, in my former company with a few colleagues then, we wanted to do something like Twitter. The idea was more towards broadcast to a group of friends for organizing activities. I didn’t know about Twitter then.
We came to one conclusion: this model of service will kill itself due to cost. And I agree with Siegler that in a way Telcos are greedy. If we pause and think, mobile broadband is actually canabalizing text messaging.
The usability of internet base chat clients (eg mobile MSN) is far more attractive than primitive SMS text that is generally a one-way messaging. In short, lowering prices for SMS doesn’t make sense for a telco because doing so does not create huge incentives for users to switch back to SMS texting if they are avid mobile broadband user and in fact lowers their volume revenue.
I believe the general strategy of many Telcos is to lower internet-data plans to encourage users to get online on their mobile devices. Bumping up SMS pricing and giving unlimited-internet transfer is a classic execution of that strategy.
Sad but true, Twitter is at the mercy of Telco when it comes to cost and infrastructure. Ultimately it is still up to users to decide to continue tweeting if SMS broadcast is phased out.