AT&T adding admin fee to every postpaid plan

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I don’t think anyone in America was ever under the illusion that their network operator was out to make life as comfortable as possible for its subscribers. Simply put, the plans are some of the least competitive on the planet. And, chief money grabber AT&T is at it again. This time around it’s adding a nominal service charge to ever postpaid account which will result in the company making millions of dollars each month.

The “Monthly Administrative Fee” actually came in to effect on May 1st, and is an extra $0.62 on top of the monthly plan. It may not seem like much to the end user, but, with its postpaid subscriber base being around the 70 million mark, that’s at least $43.4 million each month. Multiply that by 12 and you have a rather substantial profit. The company is probably banking on the fact that it’s really small change to each user.

Are you annoyed by AT&T’s tactics? Or is it fair game?

Via: AT&T

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  • respire

    Bills with the new Administrative fee are being received by customers by now. Some momentum is growing at to have a mass of customers report to the BBB, FTC, and FCC, so I am posting easy links here, in case others wish to do so as well. It’s really quick and easy to make your voice heard. BBB: http://www.bbb.org/atlanta/business-reviews/telephone-companies/atandt-in-atlanta-ga-7935/file-a-complaint FTC: https://www.ftccomplaintassistant.gov/FTC_Wizard.aspx?Lang=en
    FCC: http://www.fcc.gov/complaints You can base your info on the following but you will have to edit it to fit in the web forms: “AT&T has raised the price on every wireless line in service by $.61 a month by adding a new fee to every bill, which they explain as follows:”MOBILITY ADMINISTRATIVE FEEEffective May 1, 2013, the Administrative Fee will be $0.61 per line per month. 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.” This is a baloney way of saying “price increase”, and is a blatant violation of basic contract law which does not allow the changing of terms after the beginning of a bilateral agreement. The vast majority of ATT customers have 2-year contract agreements which prevent their switching carriers without paying a huge penalty clause. The ATT Wireless Agreement reads: “If we increase the price of any of the services to which you subscribe, beyond the limits set forth in your customer service summary… you may terminate this agreement without paying an early termination fee or returning or paying for any promotional items.” CTIA Consumer Code reads: “Carriers will not modify the material terms of their subscribers’ contracts in a manner that is materially adverse to subscribers without providing a reasonable advance notice of a proposed modification and allowing subscribers a time period of not less than 14 days to cancel their contracts with no early termination fee.” ATT claims that the price for the service remains the same and are only adding a “fee”. What’s from stopping AT&T from adding an additional $50/month fee and not letting customers out of their contract? $.61 doesn’t sound like much, but some people have multiple lines. In addition, multiplied by 115.78 million customers, AT&T makes an extra $847 million a year from this dishonest price hike. As it is not any kind of tax or government mandated charge, the new fee should be included in the basic price displayed in advertising and informational material. The new fee should only be charged on new contracts beginning after the increase, and existing contract customers must be allowed to either reject the price hike or be allowed to terminate their service without penalty, as the contract has already been breached by the carrier.”