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."
And here is a very succinct how to by someone who successfully ended their AT&T service sans ETF.
(Note it still did take 2 hours)
Part of what we pay for with state taxes is an Attorney General who amongst other things, is supposed to stand up for tax paying citizens in these sorts of situations - This is a clear david vs goliath contract law issue and a state AG or two suing these motherfuckrs could help...
I agreed to a particular price, if they can not offer the service and make profit for the price they offered it to me at, its their own bad business decision...
There's a good thread here detailing other AT&T customers experiences with getting out of their current contract without paying the ETF. That thread also contains extremely useful info about how to go to Arbitration with AT&T if they won't budge.
While true in theory, what ends up happening is you call to cancle because of the breach of contract, and you get yelled at and treated badly by their 'customer service' for 3-4 hours as you escilate up the chain trying to terminate your now null and void contract without paying the ETF, over 61 cents a month.
The only time I've ever been in dispute with a phone company, I made the choice to deal with it entirely via snail mail.
It's much quicker, since there's no frustrating wait in long queues, being put on hold, cut off or escalating to a supervisor. You can write a letter in 10 minutes, print it and mail it for a very small cost and then not worry about it until you get a reply again.
Also, letters get the attention of other parts of the company and generally yield a much better response, in that they bother to respond in a coherent manner rather than leave the onus on you. This is because snail mail is often used (still, amazingly) for important things for which they have to respond.
SJW n. One who posts facts.
AT&T's contracts prohibit filing a class action suit against them and the Supreme Court backed them on it on the basis of the ancient Federal Arbitration Act. See AT&T Mobility v. Concepcion.
upon the advice of my lawyer, i have no sig at this time