AT&T jacks administrative fee from 76 cents to $2 per month

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.

Meaning that this cost could go to anything. That includes paying off the debt to finance the recent acquisitions of Time Warner and DIRECTV.

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.

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About The Author
Jules Wang
Jules Wang is News Editor for Pocketnow and one of the hosts of the Pocketnow Weekly Podcast. He came onto the team in 2014 as an intern editing and producing videos and the podcast while he was studying journalism at Emerson College. He graduated the year after and entered into his current position at Pocketnow, full-time.