AT&T postpaid subscribers will pay more after a monthly fee rises on December 1st

AT&T raises one of its monthly recurring fees starting on December 1st.

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Top of AT&T Store includes the company logo and wordmark.
Sorry AT&T customers but starting on December 1st the nation's third largest wireless provider is hiking the Administrative & Regulatory Cost Recovery Fee from $3.49 a month to $3.99 monthly. That is the charge for each voice line. Sure, we're only talking about an extra 50 cents per month or $6 for the entire year. It's still a 14.3% hike. Do you know what this fee is used for? It's used to help AT&T recover certain expenses the company must pay to interconnect with other carriers when AT&T customers connect with customers of other wireless firms.

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The Administrative & Regulatory Cost Recovery Fee also helps AT&T recover payments of certain government fees that have been imposed on AT&T as well as recovering the costs paid by AT&T to make sure that it is complying with regulations related to: Wireless Tower Mandates Costs, State Consumer Privacy Laws, Public Rights-of-Way Acquisition Costs, and Federal Privacy-Related Mandate Costs.

AT&T allows customers to receive a $5-$10 discount that could more than offset the fee hike


What is interesting is that on its website showing the carrier's Mobility Fee Schedule, AT&T wrote that "This fee is not a tax or charge which the government requires AT&T to collect from its customers and may include aggregate costs incurred in prior years that are not yet fully recovered." In a statement, AT&T said, "Like others in the industry, we regularly evaluate and adjust fees to help cover the costs associated with delivering and maintaining our wireless network. This adjustment allows us to continue investing in our network and technology in order to provide the high-quality service that our customers expect."


AT&T is giving its customers the opportunity to make back the cost of the higher fees they are being charged, and then some. Customers who have not yet subscribed to the Autopay and Paperless Billing options can receive a $10 monthly discount by signing up for both using an eligible bank account. Customers who sign up for this option using a debit card are entitled to a $5 discount.

AT&T rivals also have similar fees although they are called by different names. For example, Verizon's "Administrative and Telco Recovery Charge" collects $3.50 each month from subscribers for each voice line. That fee includes a 20-cent hike implemented last year. T-Mobile also recently raised its "Regulatory Programs & Telco Recovery Fee" from $3.49 to $3.99 in April.

AT&T customers can save $8 each month by paying their bill on time


Besides raising the Administrative & Regulatory Cost Recovery Fee by the aforementioned $5 per month for each voice line, AT&T recently hiked the cost of service for its AT&T FirstNet network for first responders from $45 per month to $48. AT&T also will charge a "Bill Reprint Fee" to those requesting an additional monthly paper bill. This will cost an AT&T customer a flat $5 charge plus an additional 10 cents for each page exceeding 100 pages.

AT&T customers who fail to pay their bill by the due date will be socked with an $8 "Late Payment Fee. Another huge fee ranging from $58 to $325 is charged to customers with a one or two-year contract who want to cancel their plan early. The actual fee is based on how much time remains on the contract at the time it is terminated by the subscriber.

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AT&T customers deal with the following recurring monthly charges:

  • AT&T Administrative & Regulatory Cost Recovery Fee
  • Federal Universal Service Fee
  • State Universal Service Fee
  • State and Local Cost Recovery Fees

AT&T's transactional fees include:

  • Activation/Upgrade Fee
  • Bill Reprint Fee
  • Early Termination Fee
  • Equipment Restocking Fee
  • Late Payment Fee
  • Returned Payment Fee
  • Number Change Fee
  • Payment Convenience Fee
  • Restoral Fee
  • Replacement SIM Fee
  • Pay-Per Use Fees

This week, AT&T reported its third quarter earnings, which included 405,000 net postpaid phone additions topping the 334,100 net postpaid phone additions forecast by Wall Street analysts. Postpaid phone churn rose year-over-year from .78% to .92% as more AT&T subscribers in that category, which includes the priciest and most important plans. left that quarter for another carrier.

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