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AT&T Is Screwing Customers By Almost Tripling a Bogus Fee (androidpolice.com)

AT&T has almost tripled the cost of the "Administrative Fee" featured in its wireless service bills. "Up until early this year, that 'fee' was typically assessed at $0.76 per postpaid line -- not nothing, but over the course of two years of service, it ends up being a little over $18," reports Android Police. From the report: Most recently, subscribers getting their statements for June are finding an Administrative Fee charge of $1.99 per line every month. That brings the two-year cost of this "administrative fee" to almost $50 for each line on your account. The fee was raised earlier this year incrementally in March (by $0.54), but this new hike comes just three months after the first one, and it's not even clear why.

AT&T is likely hoping subscribers just won't notice their per-line bill is going up $1.23 a month versus where it was a few months ago, and in the process, could net almost a billion dollars in additional revenue according to one analyst. This could allow AT&T to finance up to $10 billion in new debt to expand its ever-broadening media empire.
The fee is being assessed against all postpaid subscribers, regardless of their service plan or any grandfathering. AT&T says the fee is related to its cost of doing business, in terms of interconnect fees with other operators and cell site rents.

7 of 149 comments (clear)

  1. Now Is Your Chance To Cancel With No Early Fee by WankerWeasel · · Score: 5, Informative

    Here's your chance to cancel. You have 30 days to notify AT&T from when they notify you of the fee change. Section 1.3 of the user agreement states you will be charged no early termination fee and can keep any promotional device you received. https://www.att.com/legal/term...

    1. Re:Now Is Your Chance To Cancel With No Early Fee by alvinrod · · Score: 4, Informative
      I've heard this particular trick mentioned before, but one would assume that the companies would be somewhat wise to it. At least if enough people took advantage of it, though I've not actually spoken with anyone who's done it, so it may be too underutilized for the carriers to figure out how to get around it.

      Here's the full text of the relevant section for anyone who doesn't want to click through:

      We may change any terms, conditions, rates, fees, expenses, or charges regarding your Services at any time. We will provide you with notice of material changes (other than changes to governmental fees, proportional charges for governmental mandates, roaming rates or administrative charges) either in your monthly bill or separately. You understand and agree that State and Federal Universal Service Fees and other governmentally imposed fees, whether or not assessed directly upon you, may be increased based upon the government's or our calculations.

      IF WE INCREASE THE PRICE OF ANY OF THE SERVICES TO WHICH YOU SUBSCRIBE, BEYOND THE LIMITS SET FORTH IN YOUR CUSTOMER SERVICE SUMMARY, OR IF WE MATERIALLY DECREASE THE GEOGRAPHICAL AREA IN WHICH YOUR AIRTIME RATE APPLIES (OTHER THAN A TEMPORARY DECREASE FOR REPAIRS OR MAINTENANCE), WE'LL DISCLOSE THE CHANGE AT LEAST ONE BILLING CYCLE IN ADVANCE (EITHER THROUGH A NOTICE WITH YOUR BILL, A TEXT MESSAGE TO YOUR DEVICE, OR OTHERWISE), AND YOU MAY TERMINATE THIS AGREEMENT WITHOUT PAYING AN EARLY TERMINATION FEE OR RETURNING OR PAYING FOR ANY PROMOTIONAL ITEMS, PROVIDED YOUR NOTICE OF TERMINATION IS DELIVERED TO US WITHIN THIRTY (30) DAYS AFTER THE FIRST BILL REFLECTING THE CHANGE.

      If you lose your eligibility for a particular rate plan, we may change your rate plan to one for which you qualify.

      It seems like there may be some lawyerly (read weasel) words in there that could get them out of this. They may have some wiggle room around the "limits set forth in your customer service summary" but I'm not an AT&T customer, so I'm not familiar with exactly how they operate.

    2. Re:Now Is Your Chance To Cancel With No Early Fee by WankerWeasel · · Score: 3, Informative

      I did this myself back in 2007 when I left Sprint to switch to AT&T when the original iPhone was released. They let me out of my contract without an early termination fee (then my state Attorney General filed a suit against Sprint over their fees and I got a nice check in the mail on top of it all). Looking at Verizon's agreement it appears they may have the option to reverse any new fees and if they fail to do so in 60 days, then you can terminate.

    3. Re:Now Is Your Chance To Cancel With No Early Fee by aaarrrgggh · · Score: 3, Informative

      “Services” are distinct from “Fees” by my read of it.

  2. Re:Why isn't this false advertising by Narcocide · · Score: 3, Informative

    It should be illegal, but as far as I know the law about including all taxes and fees in the listed price only applies to food.

  3. They turned me into The Wanderer by Tablizer · · Score: 3, Informative

    They kept adding random services to our bill without asking, such as "phone insurance". We tried to stay with them because they were the only carrier that worked well in our area. For some unknown reason the other 2 carriers' cellular signals don't come in clear.

    But my otherwise patient wife got so fed up correcting bills that she cancelled AT&T, and adamantly refuses to go back. We now live with crappy reception from one of the other 2 carriers. I have to walk outside and go 2 blocks to use my cell-phone. We tried various gizmos to boost the in-house signal without success. We also have to keep our land-line.

    I curse AT&T and then tell myself at least I get exercise from this "exercise".

    Their telemarketers also call about once a week. I either hang up on them or do Trump impressions about what losers they are.

    1. Re:They turned me into The Wanderer by aaarrrgggh · · Score: 3, Informative

      Get one of the femtocell devices or just enable WiFi calling (and put money into a good, pervasive indoor and outdoor WiFi system.