AT&T again raising a fee it hiked just six months ago
AT&T is pulling a classic trick to make customers pay more.
AT&T customers will be paying at least $1 more every month. | Image by Moment Factory
With the competitive market making outright price hikes risky, AT&T is resorting to the oldest trick in the telecom playbook to eke more cash out of its user base. These aren't modest increases either, and households with multiple lines will feel the pinch the most.
In addition to service rates, carriers also levy additional charges that don't directly correlate to customer usage. AT&T is hiking two of these add-on fees on August 5, as Droid Life first spotted.
The first increase targets everyday consumers. The Administrative & Regulatory Cost Recovery Fee is jumping from $3.99 per line per month to $4.99. This charge helps the company recover expenses related to interconnection with other providers and costs imposed by the government. It's not a tax, though.
The second charge, the Administrative Fee, is a similar charge but for business and government customers. It's increasing from $2.49 to $3.49 per line per month.
AT&T bumped the Administrative & Regulatory Cost Recovery Fee from $3.49 to $3.99 just this past December.
The fees carriers charge simply because they can
In addition to service rates, carriers also levy additional charges that don't directly correlate to customer usage. AT&T is hiking two of these add-on fees on August 5, as Droid Life first spotted.
The second charge, the Administrative Fee, is a similar charge but for business and government customers. It's increasing from $2.49 to $3.49 per line per month.
The second hike in about six months
AT&T bumped the Administrative & Regulatory Cost Recovery Fee from $3.49 to $3.99 just this past December.
Though passing on these vaguely defined costs is the norm in the industry, with T-Mobile and Verizon customers facing the same situation, that doesn't make the fees any less frustrating.
If you are an AT&T customer, what's your next move?
Tolerate it.
22%
Switch to T-Mobile or Verizon.
36%
Switch to prepaid.
42%
Endless charges
Carriers have, at best, been vague about the math behind these fees, only explaining that they help recover certain costs, comply with government and industry regulations, and maintain their networks.
Customers using facilities-based networks already pay a premium over MVNO subscribers. Thus, it's tough to swallow the fact that carriers have complete freedom not only to charge arbitrary fees but also to raise them regularly.
Already very expensive
AT&T is the second-most expensive carrier in the US, though it's trying to change that perception. In May, the company revealed an à la carte, reconfigurable plan with a base price of $15.
While that was a step in the right direction, customers will still balk at recurring charges that continue to climb without explanation.
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