Nickels and Dimes: AT&T to Charge Wireless Customers $0.61 Administrative Fee

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News Posted: Fri, May 24 2013 9:31 AM
The sly bean counters at AT&T figured out that by charging its wireless customers a nominal monthly administrative fee, it could generate hundreds of millions of dollars in additional revenue per year. Such is the power of numbers and how quickly they add up, assuming customers stick around for the ride. The ones that do will be charged 61 cents per month beginning May 1, The Wall Street Journal reports.

AT&T could stand to gain more than half a billion dollars by imposing this new "below-the-line" fee, so called because these types of charges usually appear at the bottom of the bill where they may not be noticed by customers.

AT&T Money
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According to AT&T, which gave customers 30 days notice of the new charge, the fee will cover "certain expenses, such as interconnection and cell-site rents and maintenance." That's on top of a "regulatory cost recovery charge" that's in the neighborhood of 50 cents per line.

AT&T isn't alone here. Verizon charges an administration fee of 90 cents per line along with a regulatory charge of 16 cents. Sprint Nextel charges $1.50 and 40 cents, respectively, and T-Mobile charges a regulatory fee of $1.61 per line (it doesn't tack on an administrative fee).

While small, these fees add up to big bucks. Spread across 70.7 million on-contract wireless subscribers, AT&T would collect an additional $518 million in 2014 from the new fee, and that's without adding a single new customer.
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RWilliams replied on Fri, May 24 2013 11:49 AM

Sounds like a good way to get out of your contract, sans fee. They increased your monthly charge, and there was nothing you could do about it. Simple as that.

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RWilliams:
Sounds like a good way to get out of your contract, sans fee.

That's a good point - I wonder if it will actually work!

 SPAM-posters beware! ®

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realneil replied on Fri, May 24 2013 2:10 PM

Super Dave:

RWilliams:
Sounds like a good way to get out of your contract, sans fee.

That's a good point - I wonder if it will actually work!

 

Probably not. They have a crapload of Lawyers that have (probably) figured out how to make it stick already,.......

 

Dogs are great judges of character, and if your dog doesn't like somebody being around, you shouldn't trust them.

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I never got a letter telling me about such fee. Under contract agreement it is stated that they can change fees without notice. However this is not changing any fee, it's adding another one. So I'm going to call and let them know that I want my contract canceled. It is not about the $0.61 it's about principle. What if next week they want to impose some $50 whatever fee, are we suppose to pay it to?

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realneil replied on Fri, May 24 2013 2:51 PM

RicardoMartinez:
So I'm going to call and let them know that I want my contract canceled.

Please be sure to post and let us know how that goes for you.

This is interesting,........

Dogs are great judges of character, and if your dog doesn't like somebody being around, you shouldn't trust them.

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