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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.

26 of 149 comments (clear)

  1. AT&T says the fee is related to its cost of do by OrangeTide · · Score: 5, Funny

    That's fine. AT&T can figure out to pay those costs, since it's not my fucking business.

    Maybe I don't want any administration of my line. I doubt I'll miss it, whatever it is.

    --
    “Common sense is not so common.” — Voltaire
  2. Why isn't this false advertising by goombah99 · · Score: 5, Insightful

    If it's part of the cost it's part of the cost. They advertise costs that are bfore Fees. People get this when it's taxes and 911 fees but fees that GO to ATT are B.S. deception.

    why not advertise free service*

    * plus $64/mo content delivery fee.

    --
    Some drink at the fountain of knowledge. Others just gargle.
    1. 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.

    2. Re:Why isn't this false advertising by aaarrrgggh · · Score: 2

      All of the fees go to AT they just give random justification for some.

    3. Re:Why isn't this false advertising by hipp5 · · Score: 2

      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.

      Not sure about US, but they've added that law to airline tickets in Canada (they must include base fares + taxes + airport improvement fees + fuel surcharges). It's a small thing, but man does it make life just a little bit better.

  3. 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.

  4. The one that pisses me off by rsilvergun · · Score: 4, Interesting

    is "Regulatory Compliance Fee". This is a fee T-Mobile charges me so that _they_ can comply with regulations. You know, like every other business on Earth does. But the line item makes it sound like a tax. They're hoping I'll blame the government for the cost of my cell phone rather than them and their damned hidden fees.

    I have to admit it does also irritate met that I pay a fee to extend service to rural communities who consistently vote against government assistance for such things. Not that I begrudge them phone & internet, but I wish they'd stop fighting tooth and nail against it.

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
    1. Re:The one that pisses me off by alvinrod · · Score: 3, Insightful

      What's wrong with making various costs individual line items? I'd rather that companies did it with everything down to the CEO's stripper and cocaine party expenses. Government regulations aren't free and your wireless carrier is going to pass any costs on to you regardless of whether they're from duly enacted laws or poor business decisions made by the company. At least you can see what the cost of those regulations are and if you don't feel as though you're getting your money's worth, petition your representatives in government for changes to those regulations.

      You're paying the full bill either way. Would you really be happier if it were just a single lump sum with no additional information? Ignorance may be bliss, but it isn't particularly useful.

    2. Re: The one that pisses me off by orlanz · · Score: 2

      This fee is to recoup their internal costs of complying with regulations. It isn't a direct cost from regulations. As long as you accept that it's the governments fault, they have no reason to improve their cost structure.

      Why should we as a consumer whose price reflects our demand & product supply; not the business's internal costs care about customs costs, transportation costs, retail shelf rental cost, website maintenance cost, etc? This is no different.

      This sector like many others (ie: restaurant) has certain regulations. That's the cost of doing business. They should not get to pull it out as "not us; we are just middlemen" on anything that isn't a direct tax or fee from the government or charity or whatever; payments that do not go to the vendor.

    3. Re: The one that pisses me off by houghi · · Score: 2

      The thing I want is the price tge monthly fee + a line per extra cost. And with extra cost I mean things like an international call or a call to a sex line. Not things that should be in the monthly cost, like toilet paper use. And as a European, I also want the taxes included. Ot is not as if I am not paying them.

      --
      Don't fight for your country, if your country does not fight for you.
  5. Re:they are not screwing anyone by jonsmirl · · Score: 2

    Verizon did this with FIOS a few years ago and cause me to cancel when my contract expired. They arbitrarily raised the rental fee of the mandatory STB $3 to $5 per month depending on model. Of course consumers got squat for this price increase. What pissed me off was seeing the CEO on the financial news networks crowing over and over about the new RECORD profits in the FIOS group. I knew exactly how those profits were achieved.

  6. Re: they are not screwing anyone by meerling · · Score: 3

    It's not like the company hasn't historically billed people for plenty of bogus things before that even AT&T couldn't explain to anyone, not even the federal inspectors questioning them on those, err, discrepancies.

  7. This is an old AT&T trick by olsmeister · · Score: 2

    Many, many years ago I would get calls from AT&T offering me some amazing deal if I switched my landline service to them. I would ask them repeatedly whether that was the actual bottom line price that I would be billed for, and they would assure me it was. Then, I'd receive my first bill and it would be almost double what they said. I would call customer support, and they would tell me that the sales group was a different department and they shouldn't be making promises like that and it couldn't be changed. That happened twice. Finally I got rid of my landline and swore I'd never give AT&T another dollar of my money ever again.

    Until a couple years ago, when they bought DirecTV. Bastards, now they're getting money from me again. And that's another shady bill that gradually creeps upward every couple of months.

  8. 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.

  9. I want the total in big print by tepples · · Score: 2

    I want the big number in the advertisement to be the total, not just one line item. This way I can quickly compare one carrier's total to another carrier's total.

  10. Updated AT&T motto by fahrbot-bot · · Score: 2

    Considering the AT&T logo is basically the Death Star, I think their updated corporate motto hits the mark:

    We are altering the deal. Pray we don't alter it any further.

    --
    It must have been something you assimilated. . . .
  11. Re: they are not screwing anyone by houghi · · Score: 2

    I used to call international as well. I used to call over VoIP. With the App on my phone, I paid 1 cent per minute and after er a topup of 10Euro, igot a month free.

    Do look if you top up, as the prices will increase. Just look for another one http://www.voip-comparison.com... or search for Betamax Voip Providers.

    If the one you had increased prices when uou seeyou need to top up, just go with another one and change your login and pasword in you app.

    You can then also use it if you are in Germany and need to call home.

    --
    Don't fight for your country, if your country does not fight for you.
  12. Re: 'the cost of doing business' & providing s by houghi · · Score: 2

    I would say: fuck the US companies. When I was there I had no idea how much Iwould pay after looking at a pricelist.
    As a European I am used to pay what I see listed. Not more. Not less. Taxes and service is included.

    When they changed the system for e.g. restaurants, they added the 16% service to it as well as the tax.

    Tipping is bot needed and I hate it. I do not tip the bankteller for doing their job. No need to do it for a waiter. And yes,I thought the same when I was one.

    Just show me the price so I can make a decussion.

    --
    Don't fight for your country, if your country does not fight for you.
  13. Re:they are not screwing anyone by hjf · · Score: 2

    Playing the devil's advocate here: Inflation plays a role too. While inflation in the US is minimal, with the years it becomes signficant. In the case of the article, 76 cents in 1995 is $1,27 today. Shy of "twice as much".
    This is a purely objective point though. The reasons why they increase pricing is simple ("because they can"). But never disregard inflation as a factor too.

  14. Re:they are not screwing anyone by Anonymous Coward · · Score: 2, Insightful

    The problem is inflation seems to be a good excuse for companies and utilities to raise pricing, but never seems to be a good excuse to allow people cost of living raises. It's not about inflation. If it was, the increase in what a company is taking in would be funneled out in salaries to the entire employee base. Instead, it's funneled directly to the owners and upper levels of management, while the rest of the people get dick and told to like it. Then the management wonders why we're angry as they report their record profits year by year and we're told they can't afford to pay us more come review time.

  15. Re:they are not screwing anyone by Rhipf · · Score: 2

    They are merely increasing profit without increasing the cost of the plan.

    All service providers have been doing this for years by itemizing the bill and adding on taxes and fees.

    So how exactly is adding an extra service charge to your bill not increasing the cost of your plan. The quoted figure may still be $xx.xx but the actual cost of your plan is going up with this new fee.

  16. Somebody finally noticed by RogueWarrior65 · · Score: 2

    This is the kind of B.S. that's been around for years. Here's a list of the fees on my electric bill:
    Cost of electricity you used
    Customer account charge $15.12
    Delivery service charge $1.62
    Environmental benefits surcharge $0.47
    System benefits charge $0.11
    Power supply adjustment* $0.18
    Metering* $44.31
    Meter reading* $0.27
    Billing* $0.90
    Generation of electricity* $3.36
    Federal transmission and ancillary services* $0.32
    Federal transmission cost adjustment* $0.01
    LFCR adjustor $0.12
    Tax Expense Adjustor -$0.20

    Ridiculous, right? That "metering" fee for a whopping $44.31 is for a fancy shmansy meter capable of handling three-phase service. Here's the kicker: I don't have three-phase service. But the electric company refuses to come change out the meter.

    60% of Americans have no emergency fund. A lot have no savings at all. Bullsh*t like laundry lists of fees and getting addicted to a rental economy is why.