AT&T Kills $10 for 1,000 Text Plan: Why it Will Make Them Money

AT&T just made yet another change to its plans. And once again, it's going to make them money.

Starting August 21, it will no longer offer the $10 plan that buys 1,000 text messages. Instead, new users will only be able to choose between the $20 unlimited plan or have no text plan and get charged 20 cents per text. (The $30 per month family plan that allows unlimited texts on up to five lines will still be available).

Users who have the $10 plan will be grandfathered in; it's just that new users will no longer have that option.

So why will this plan make AT&T more money?

Many cell phone users send out less than 1,000 texts per month, especially if they're on a BlackBerry or another smartphone because they use email, Blackberry Messenger, and chat apps in lieu of texts.

Frequently, they only use texts to communicate with feature phone users.

Personally, I only used 35 texts from August 1 to August 18. For users like me, a 1,000 text plan makes perfect sense. In fact, a cheaper plan, say a $5 for 200 text one, would be even better.

What would make even less economic sense is paying 20 cents per text, which clocks you at an insane rate of $40 for 200 texts.

So, new users who are perfectly fine with the $10 plan would have to shell out $20 with AT&T come August 21.

An AT&T spokesperson said the company is killing the $10 plan for streamlining purposes. While that could be true, it will also allow AT&T to make an extra $10 off of many new users.