Just to avoid any confusion for Twilio customers on this thread, we lowered SMS pricing to $0.01/message on the evening of May 20th (yes, Tropo went first), so that is what you'll see reflected in your Twilio account. The reason there is so much buzz today is because we just announced the change today in our newsletter/blog, along with the release of the new "Apps" feature in the developer dashboard.

We're proud to keep reducing prices for SMS, first from the original $0.03 down to $0.02 back in September, and now this price cut. It's our customers and their business that make this possible, through better economies of scale that allow us to reduce SMS cost for developers while still making it financially viable for us as a business. Affordable SMS is opening up incredible use cases.