Admin Fees By AT&T Just a Ploy to Increase Rates

Sara Cunningham June 7, 2013 1
Admin Fees By AT&T Just a Ploy to Increase Rates

Something “fishy” is going among  the US’s 4 largest carriers. Did you ever notice that at the end of the bill there are always some unnecessary tax fees that you can’t even decipher why they are on your bill in the first place? Well, all of the operators have this and you  have no choice but to pay it anyway. These are not imposed by the government and you  cannot even dispute them! Customer service representatives will continue to tell you that this fee covers the additional costs for their services. As it seems, AT&T plans to raise these types of phantom rates.

It’s usually a small amount of money, but if you calculate how many users have AT&T- you will realize that these numbers really add up to a numeral that will blow your mind. It started back in May, when this popular carrier decided to put a charge of 61 cents per line. The explanation that AT&T provides in lieu of questioning this fee is ridiculous. They have stated that this is solely for Mobility Administrative purposes.

This is just another fee we can charge consumers that will be  included into the “below the line” and “read the small red text”  clauses which are prominently placed at the bottom of the bill. The 61 cents may mean nothing to you, but for AT&T the profits add up to bring  them an additional $350 million extra revenue annually. And the next year, they can choose to increase these fees with an increase that will total a revenue of $518 million- merely from this new fee alone.

In the statement issued by AT&T about this matter, they made excuses for themselves such as:

“The competition already does this and we decided to charge it for our purposes.”

It’s true that AT&T has never charged this fee before, but why start now? For quite some time, Verizon and Sprint have been charging  this fee- but that doesn’t mean that AT&T was obligated to charge it too! But when additional revenue is in question, everything else becomes second. T-Mobile has a different name for it. This company calls it “Regulatory Programs Fee” , but it’s the same fee  as we are referring to in lieu of AT&T’s new excess charges.

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The industry has already taken some steps  to control these types of fees with a bill called t “Wireless Tax Fairness Act”. This act will prohibit the local government  from proposing new taxes on various mobile services, providers, or even on the mobile service properties.

However, the government doesn’t collect all the honey from the money, though, the carriers have their own versions of taxes and fees that magically appear on your phone bill. I’ll say it again, it’s not a significant fee- but it is kind of bothersome to consumers, rightfully so.

CTIA Wireless Association made  the calculation that every user is paying 16.3% in additional fees per month and on top of this, there is the wireless bill. This comes as double of what you are paying for the other services. Now you know why you pay this and the bad news is – we are going to continue paying these unfounded fees— because there is no other option that is more affordable than a wireless network plan.

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