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

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.

  • rodney_ws
    Capitalism run amok!
    Reply
  • mrmike_49
    yeah, typical way the big companies "nickel and dime" you!
    Reply
  • TheCapulet
    "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)
    Reply
  • n1tr0
    "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.
    Reply
  • smokeybravo
    Looks like it's T-Mobile time after my contract is up. They have better coverage anyway.
    Reply
  • spentshells
    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.
    Reply
  • Blessedman
    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.
    Reply
  • senkasaw
    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! :)
    Reply
  • gekko668
    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.
    Reply
  • bigshootr8
    after seeing quite a bit of what happens behind the curtain I'm not surprised.
    Reply