This reminds me of my wedding photographer. She was just starting out and priced her services much lower than what she was worth. A few months later she bumped up her prices significantly and her business exploded. People viewed her lower prices as an indication of low quality despite a quality resume on file.
The situation is unique. Most of her clients have next to no experience with hiring or evaluating a Wedding Photographer, so price acts as a greater indication of quality than usual.
IF AT&T doubled their pricing for SMS (for example), they would likely lose customers, because we all have a better way of evaluating quality than just price.
