Sneaky! AT&T Just Doubled Admin Fee for 64.5 Million Customers

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AT&T has doubled the "administrative fee" on the bottom of its monthly wireless bills from 76 cents to $1.99.

While you weren't looking, AT&T may have increased its revenue by almost $1 billion.

Fortune reports that the company has doubled the "administrative fee" on the bottom of its monthly wireless bills from 76 cents to $1.99. AT&T has 64.5 million monthly customers, meaning it could raise its revenue by $800 million a year.

Credit: Kena Betancur/AFP/Getty Images

(Image credit: Kena Betancur/AFP/Getty Images)

Some customers have confirmed that the charge is on their bill. 

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“This is a standard administrative fee across the wireless industry, which helps cover costs we incur for items like cell site maintenance and interconnection between carriers,” AT&T told Fortune.

In documentation, the company claims the fee is used to "defray certain expenses AT&T incurs, including but not limited to: (a) charges AT&T or its agents pay to interconnect with other carriers to deliver calls from AT&T customers to their customers; and (b) charges associated with cell site rents and maintenance.”

These costs haven't gone up much lately, according to Fortune, which means the cost is probably going to be used more generally to fund the recent acquisition.

Sprint and Verizon charge similar vaguely defined fees, while T-Mobile stopped adding them last year.

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Monica Chin

Monica Chin is a writer at The Verge, covering computers. Previously, she was a staff writer for Tom's Guide, where she wrote about everything from artificial intelligence to social media and the internet of things to. She had a particular focus on smart home, reviewing multiple devices. In her downtime, you can usually find her at poetry slams, attempting to exercise, or yelling at people on Twitter.

8 Comments Comment from the forums
  • tonep05
    Thanks for informing me of the fee increase but somehow I'm missed point the writer was making. Is something gonna new some about it or is this another admin fee we the consumer will have to accept? What steps we the consumer should take to stop this type of practice?
    Again thanks for the information.
    Reply
  • webgtlnbrgrs
    I received my bill 2 day's ago, I called and asked what increased and she said the administration fee was raised to better serve the customer.... I said and when will the better service kick in !! shouldn't you serve us before you charge us ??? needless to say I was not appreciated... time to look for another carrier that might appreciate my business, I have been with at&t for 40+ years through my business and personal use...I'm being taken for granted....
    Reply
  • webgtlnbrgrs
    The fee is on top of the existing one and added to it, you can compare what you pay now with your next bill ...
    Reply
  • jayhowell72
    Not sure why people waste their time with these money hungry carriers when there are so many MVNOs out there that use the same towers and for a fraction of the price !!!
    Reply
  • dekhartle1
    I keep posting this again and again and I will do so again...STAY AWAY FROM AT&T..THEY ARE BANDITS...THEY WILL RIP YOU OFF
    Reply
  • glennquagmire911
    Don't subscribe. Pay as you go. Quit financing equipment you cannot afford. I use AT&T's Go plan and pay less than 1/2 of what a subscriber pays.
    Reply
  • tonep05
    21095926 said:
    I received my bill 2 day's ago, I called and asked what increased and she said the administration fee was raised to better serve the customer.... I said and when will the better service kick in !! shouldn't you serve us before you charge us ??? needless to say I was not appreciated... time to look for another carrier that might appreciate my business, I have been with at&t for 40+ years through my business and personal use...I'm being taken for granted....

    Reply
  • tonep05
    I like what you are doing, however since they all are in collusion and control the pay as you go companies, we need a venue that can hit them where it hurts! How do we band and create since THEY control everything.
    All for leaving the big guys, but where do you go next?
    Reply