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AT&T Quietly Adds Charges To All Contract Cell Plans
guttentag writes "The Wall Street Journal is reporting that AT&T Mobility, the second-largest wireless carrier in the U.S., has added a new monthly administrative fee of 61 cents to the bills of all of its contract wireless lines as of May 1, a move that could bring in more than a half-billion dollars in annual revenue to the telecom giant. An AT&T spokeswoman said the fee covers 'certain expenses, such as interconnection and cell-site rents and maintenance.' The increased cost to consumers comes even though AT&T's growth in wireless revenue last year outpaced the costs to operate and support its wireless business. The company has talked of continuing to improve wireless profitability. Citigroup analyst Michael Rollins noted that the new administrative fee is a key component for accelerating revenue growth for the rest of the year. He said the fee should add 0.30 of a percentage point to AT&T's 2013 revenue growth; he predicts total top-line growth of about 1.5%. Normally, consumers could vote with their wallets by taking their business elsewhere. AT&T would be required to let customers out of their contracts without an early termination fee if it raised prices, but it is avoiding this by simply calling the increase a 'surcharge,' effectively forcing millions of people to either pay more money per month or pay the ETF."
AT&T would be required to let customers out of their contracts without an early termination fee if it raised prices, but it is avoiding this by simply calling the increase a 'surcharge'
I love the way there's always a loophole!
It's the American way!!!
Karma: Bad
Hey, ATT, I'm calling this paper bag full of shit, a "payment."
"National Security is the chief cause of national insecurity." - Celine's First Law
Oh yeah well if that happens then I will just let them know they are receiving a demerit each time my call is transferred. If I have to issue three demerits they will receive a citation. Four of those will result in a verbal warning and if they keep it up they will be looking at a written warning. Two of those and they will be in a world of hurt in the form of a disciplinary review, written up by me, and placed on the desk of their immediate supervisor.
Keep the Classic Slashdot.
Do you Americans not have any consumer protection laws and/or groups who would sue the providers for a move like this? It's what would happen in Europe.
Simple fix
Call up AT&T and switch to a pay by check through the mail. The cost of billing and postage will cost them more than the 61-cents.