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the markup on text messaging has always been northern of 99.999%. it costs them almost nothing.
Even crazier is they take up almost no bandwidth because they were sent in the unused part of the control packet which was being sent anyway.
This is true. When I checked on this about five years ago (in the UK), the cost per message was about £0.00001
With the reduction in the number of SMS sent, it now costs more to bill them. In the UK, even the cheapest monthly contract has unlimited calls and texts. There a pre-pay tariffs as low as £3 a month with calls, texts and some data.
Sure, the marginal cost is basically nothing. Once you have invested billions in infrastructure.
Not saying 10 cents isn't outrageous, just that 0.001 cents seems low