Check your bill: AT&T has quietly raised its "administrative fee" by more than 160 percent...

Shawn Knight

TechSpot Staff
Staff member

AT&T is quietly raising the cost of its “administrative fee” line item assessed to postpaid wireless customers in the US.

As Fortune highlights, BTIG Research analyst Walter Piecyk recently noticed that the fee shot up from $0.76 to $1.99 per line. That may not sound like much money but when you do the math and factor in AT&T’s nearly 65 million post-paid customers, it works out to an increase of at least $800 million per year. CNBC reports that about 15 percent of post-paid accounts won't be impacted but didn't specify why.

An AT&T spokesperson confirmed the fee increase with The Verge and issued the following statement:

“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.”

The comment mirrors language used on AT&T’s website to describe the administrative fee which reads as follows:

The Administrative Fee helps 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.

The site also listed the administrative fee as being set at $1.99 when I plugged in my ZIP code. Furthermore, a fellow TechSpot staff member who uses AT&T checked his bills and confirmed the administrative fee was just $0.76 in March. It bumped up to $1.26 in April, an incremental hike like the one mentioned in a separate report from Android Police.

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captaincranky

TechSpot Addict
Oh sure, you can ride me for it , scorn my very existence in the technical world for it, but I'm so happy I don't own a smart phone, a Facebook account, or even have friends in the physical world.

Crank-fucious say, "a friend in need is a pain in the a**, a friend in need on the phone, goes straight to voice mail". :):cool:(y)


(Although we could use some emojis in order for me to trash up my posts a bit more :rolleyes: )
 
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Scshadow

TS Evangelist
"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."
Dear AT&T, this is what you charge us for in the first place. Its called a service. We ordered it from you, you advertised a cost. This is not hard.
 
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ShagnWagn

TS Guru
"We don't make enough profit and want a $1,000,000,000.00 more. We also bought out a competitor so now we will be a bigger monopoly, and you are paying for it. You will be assimilated. Now open your wallets."
 

psycros

TS Evangelist
The federal government keeps rubber-stamping the robbery because most of Congress owns AT&T stock and I'm sure a few of them sit on its BOD. Now that AT&T, Disney and Comcast own all the content we can expect things to get much, much worse
 
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I

iamcts

When you vote in representatives that allow massive corporations to screw over consumers with no consequences you have no right to complain.
 

Impudicus

TS Addict
This combined with some other rates they've quietly adjusted over the past year or so I've started to quietly look for a new carrier.
 
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p51d007

TS Evangelist
Which is why I use straight talk. I never go near the 10gb limit, unlimited talk & text,
FLAT rate each month, and I still use at&t towers (better coverage where I live).
 

captaincranky

TechSpot Addict
The only way around it would be not to vote at all. That's really going to help. *sigh*
.True dat. BUT, the one thing voting in the US does provide, is a choice between the lesser of two evils.

That having been said, if a person didn't vote, they would lose the right to complain about their elected officials, or be branded as "hypocrites".

So kidz, the platitude of the day is, "you're damned if you do, and damned if you don't". :D
 
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