Twitter says that a single user, capped at 250 received SMS messages per week still costs them $1,000 per year in SMS fees. They don’t have that problem in the US and some other countries because they’ve been able to negotiate service fees that max out after a certain point.
“We’ve arrived at a point where the responsible thing to do is slow our costs and take a different approach” they said in the blog post.
Next up: a revenue model.
UPDATE: See TechCrunch UK for more UK reactions to this move – it’s not pretty…