BTIG Research has forecast AT&T’s revenue to jump by $800 million with a big increase in the monthly administrative fee tacked onto its wireless customers’ bills.
Android Police notes the fee started out at a nominal average of about 76 cents per postpaid line per month before being increased in March to $1.26. This month, the fee went up to $1.99. If the fee jump is sustained, this means that customers will be paying $37.20 more over a 30-month AT&T Next term than if the original fee had stayed in place.
AT&T has an array of “other fees” such as a fee covering the cost of state and federal rural service subsidies, 911 charges, maintenance and other fees. The “Administrative Fee” is explained as such:
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.
Every carrier can assess outrageous fees, including T-Mobile, which wraps in those fees into the advertised monthly service cost of its plans. That said, you may want to look out for any opposition marketing on this move.