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AT&T to Make Millions Thanks to New 'Administrative Fee'

By - Source: via BGR | B 46 comments

Every little bit counts, right?

It might not seem like much, just a measly sixty-one cents a month, but AT&T is apparently going to make a killing with its new administrative fee. The company tacked this $0.61 fee onto customers' wireless bills effective May 1, 2013, and calls it a "Mobility Administrative Fee." Speaking on the AT&T forum, an AT&T employee said that the fee is consistent with similar fees from other carriers. It will cover expenses that AT&T incurs, including charges associated with cell rent sites and maintenance, as well as charges the carrier pays to interconnect with other carriers when delivering calls.

 

While customers may not be happy with the additional charge, it's unlikely this will affect their relationship with AT&T. After all, as AT&T itself pointed out, other carriers have a similar charge in place, and customers won't be able to break their contract without paying a hefty fee just because of this change. (Because it is labeled as an administrative fee and not an increase in service charges, it doesn't constitute a breach of contract.) From AT&T's perspective, it's about to get a pretty sizable bump in revenue. According to Boy Genius Report, this new charge will bring in roughly half a billion dollars per year. That's a lot of money.

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  • -2 Hide
    rodney_ws , May 24, 2013 1:33 PM
    Capitalism run amok!
  • 0 Hide
    mrmike_49 , May 24, 2013 1:39 PM
    yeah, typical way the big companies "nickel and dime" you!
  • 7 Hide
    TheCapulet , May 24, 2013 1:41 PM
    "It will cover expenses that AT&T incurs, including charges associated with cell rent sites and maintenance, as well as charges the carrier pays to interconnect with other carriers when delivering calls."
    Because they were doing this for free, out of the goodness of their hearts before now. I mean, because my already $70 bucks a month bill is more like giving to charity for them, huh?
    Now I'll just look forward to seeing the next bit of related news telling me that AT&T gets their asses handed to them in class action fees and everyone who's stuck with them gets to drop them and move to a fair carrier due to the Breach of Contract. (because calling it by another name doesn't make it any less a price hike)
  • 2 Hide
    n1tr0 , May 24, 2013 1:50 PM
    "While customers may not be happy with the additional charge, it's unlikely this will affect their relationship with AT&T. After all" ... AT&T has the lowest customer satisfaction rating already (for the last 3 years running).
    I just want to know if them slipping in extra charges while I'm stuck "on contract" is grounds to terminate the contract.I would love nothing more than to dump AT&T if not for the early termination fees.
  • 2 Hide
    smokeybravo , May 24, 2013 1:58 PM
    Looks like it's T-Mobile time after my contract is up. They have better coverage anyway.
  • 0 Hide
    spentshells , May 24, 2013 2:00 PM
    this is a change in contract anyone wanting to can cancel the account effective immediately for the first 30 days after the effective change. No early termination fees
    it may be 60 days but why risk it.
  • 3 Hide
    Blessedman , May 24, 2013 2:03 PM
    If every company keeps increasing their price and justifying it by citing other company practices, doesn't this defeat a competitive market? I think the justice department needs to check on price fixing by the major players.
  • 0 Hide
    senkasaw , May 24, 2013 2:03 PM
    I hate this stuff. Isn't just at&t, or mobile service providers, that do it either. Cable companies, dish, internet providers...
    Ticks me off. Of course it's not like I am going to do anything about it. Just going to complain a bit. Someone will read and agree...nothing will change.
    Maybe I am being too cynical.
    At least it is Friday! :) 
  • 2 Hide
    gekko668 , May 24, 2013 2:07 PM
    This is a few reasons beside expensive plans that I went prepaid and never look back. I bought my phone used and unlocked them. These guy are getting greedier and greedier every year.
  • 0 Hide
    bigshootr8 , May 24, 2013 2:13 PM
    after seeing quite a bit of what happens behind the curtain I'm not surprised.
  • 3 Hide
    TheCapulet , May 24, 2013 2:24 PM
    "It will cover expenses that AT&T incurs, including charges associated with cell rent sites and maintenance, as well as charges the carrier pays to interconnect with other carriers when delivering calls."
    Because they were doing this for free, out of the goodness of their hearts before now. I mean, because my already $70 bucks a month bill is more like giving to charity for them, huh?
    Now I'll just look forward to seeing the next bit of related news telling me that AT&T gets their asses handed to them in class action fees and everyone who's stuck with them gets to drop them and move to a fair carrier due to the Breach of Contract. (because calling it by another name doesn't make it any less a price hike)
  • 0 Hide
    dextermat , May 24, 2013 2:33 PM
    It's about time the lower and middle class put in place the "poor survival tax" so they can afford those services :p 
  • 0 Hide
    slomo4sho , May 24, 2013 2:38 PM
    You can contact ATT before paying your bill to end your contract without an ETF since this is a rate increase while in contract.
  • 1 Hide
    jldevoy , May 24, 2013 2:44 PM
    Americans must be mad putting up with stuff like that.
  • 2 Hide
    shotgunz , May 24, 2013 2:45 PM
    The heck is wrong with your wireless carriers USA? We have $20 unlimited talk/text/~200kB/s data and call features for $20 a month here in Canada.
  • 0 Hide
    ryu750 , May 24, 2013 3:12 PM
    Left them a year ago saving myself over $40 mo with more features and unlimited Data..
  • 1 Hide
    eklipz330 , May 24, 2013 3:26 PM
    when you have that large of a customer base, all you have to do is nickel and dime people to make billions.
  • 3 Hide
    blurr91 , May 24, 2013 3:31 PM
    AT&T is slow. Government has been using the term "fee" to get around the legal hurdle of a "tax" for decades, at least in California. It takes 2/3 majority to pass a tax in CA, but a fee can be decreed by administrative fiat.
  • 2 Hide
    everygamer , May 24, 2013 3:45 PM
    Getting kinda tired of the "other carriers do it" excuse. I went to Verizon the other day and found out that all future phone upgrades are going to include an upgrade fee, even if I had my phone for more than the 2 year contract. When I said that sounded a bit greedy the guy working there said exactly what AT&T is saying, its what other carriers are doing.
    So here's the question, if all the carriers line up and decide to charge all the same fees, costs, etc then they are no longer competing with one another. At that point it just sounds like price fixing. Maybe someone at the FCC should start taking a look into that.
  • 3 Hide
    ricdiculus , May 24, 2013 3:48 PM
    Toms! Holly crap! Will you PLEASE fix this busted up comment section! Better yet, roll it back to the previous version that actually worked and made some sort of sense!
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