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Tutor

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1 Message

Thu, Apr 12, 2018 10:24 PM

Administrative fee

Were customers notified in advance that there was a 65% increase in the administrative fee (to defray certain expenses ATT incurs) this month?

Responses

Accepted Solution

Official Solution

MicCheck

ACE - Expert

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9K Messages

2 years ago


@SavetheCrew wrote:

Ok so after reading this thread, we have people trying to help who are customers too, but is Melissa, AT&T Community Specialist, a person employed by AT&T to answer?  She is listed as "ATTCares" administrator.  I need to understand how this fee increase, of 63.3% for me and what is the reasoning behind it?  63.3% increase per line on AT&T systems has to be into the Millions of dollars (my increase 50¢ a line) so I would be believe that there are more than 2 million lines out there hence my millions comment.  What is being done with this fee increase?  Sorry,  I was hoping that AT&T was different than my last carrier.  thank you


If you "need" to understand, then I'm afraid you're going to be frustrated. AT&T doesn't owe you an explanation for any of its pricing decisions, including the administrative fee. 

 

You're not going to get an answer beyond, "The Administrative Fee helps defray certain expenses AT&T incurs, including but not limited to: (a) charges AT&T or its agents pay to interconnect with other carriers to deliver calls from AT&T customers to their customers; and (b) charges associated with cell site rents and maintenance" as noted in the link Melissa shared. 

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*I am not an AT&T employee, and the views and opinions expressed on this forum are purely my own. Any product claim, statistic, quote, or other representation about a product or service should be verified with the manufacturer, provider, or party.

Accepted Solution

Official Solution

MicCheck

ACE - Expert

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9K Messages

2 years ago


@overwatch wrote:

How you want to define a subscriber or line actually doesn't matter since I found the data on the number of Postpaid Wireless Subscribers, which is the actual number we need since these are all the subscribers to which the Administration Fee is applied (although the "77.8 million" I found was from 2016 data, so it may be slightly higher or lower at this point. You can look at how many subscribers AT&T Wireless has apparently added or lost since 2016 and adjust your numbers accordingly.) Now, the charge varying by zip code could possible matter. However, for California, Wyoming, Hawaii, Nebraska, New York, Washington, Utah and the few other states I tried, the charges are all currently $1.26 for every zip code I have checked. You are free to plug in your own numbers. Considering my calculations are based on the previous and lower Administrative Fee of $1.23, $1.1 billion of extra annual revenue is a very fair and conservative estimate. I'll state it again. $1.1 BILLION dollars in extra revenue for AT&T Wireless from an extra fee that is not considered a price hike and a fee that AT&T imposes without prior notice. Argue as much as you want. The more you argue, the more truth comes to light and the worse it looks for AT&T. Arguing just makes people dig for more facts to find the truth.


Why are you ignoring the extra expenses AT&T has that the fee is meant to offset?

 

 

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*I am not an AT&T employee, and the views and opinions expressed on this forum are purely my own. Any product claim, statistic, quote, or other representation about a product or service should be verified with the manufacturer, provider, or party.
Brand User
ATTHelp

Community Support

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127.5K Messages

2 years ago

Hi there, @Judihedgeallen!


Welcome to the Community Forums! I am more than happy to assist you with the administrative fees.


I did check into whether customers were informed about the increase. I cannot verify one way or another.


However, if you would like to know more about the increase, please use this link here. It will ask for you zip code, and will provide all the information about the fee.


I hope this helps! If you have any other questions or concerns, please let me know. I hope you have a wonderful week!


Melissa, AT&T Community Specialist

Still need help? Ask a question! Our 1.4 million members typically respond within 1 hour.

*I am an AT&T employee, and the postings on this site are my own and don't necessarily represent AT&T's position, strategies or opinions.
overwatch

Mentor

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50 Messages

2 years ago

Isn't the "Administrative Fee" just a bottom-line de facto price hike? Shouldn't our monthly subscriber fees already pay for these additional fees as this is not a tax by an outside agency?

lizdance40

ACE - Sage

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76.9K Messages

2 years ago

🐾 I don’t work for AT&T or any carrier. Never have, never will. My replies are based on experience and reading content available on the website. If you posted personal information, please edit and remove.

Award for Community Excellence 2019 Achiever*
*I am not an AT&T employee, and the views and opinions expressed on this forum are purely my own. Any product claim, statistic, quote, or other representation about a product or service should be verified with the manufacturer, provider, or party.
overwatch

Mentor

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50 Messages

2 years ago

Thanks, ACE Expert... however... if the "Administrative Fee" is a de facto rate increase to the applicable Service Plan Subscription Rate, then isn't AT&T supposed to disclose the change/increase at least one billing cycle in advance as is stated in the Terms you linked to?

 

"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."

 

 

 

 

lizdance40

ACE - Sage

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76.9K Messages

2 years ago

@overwatch

No.  Your service plan is data and line fees.  Those prices were not changed.  Your customer service summary does not include taxes or fees.  

 

1.3 Can AT&T Change My Terms And Rates?

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.

🐾 I don’t work for AT&T or any carrier. Never have, never will. My replies are based on experience and reading content available on the website. If you posted personal information, please edit and remove.

Award for Community Excellence 2019 Achiever*
*I am not an AT&T employee, and the views and opinions expressed on this forum are purely my own. Any product claim, statistic, quote, or other representation about a product or service should be verified with the manufacturer, provider, or party.

Contributor

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2 Messages

2 years ago

Ok so after reading this thread, we have people trying to help who are customers too, but is Melissa, AT&T Community Specialist, a person employed by AT&T to answer?  She is listed as "ATTCares" administrator.  I need to understand how this fee increase, of 63.3% for me and what is the reasoning behind it?  63.3% increase per line on AT&T systems has to be into the Millions of dollars (my increase 50¢ a line) so I would be believe that there are more than 2 million lines out there hence my millions comment.  What is being done with this fee increase?  Sorry,  I was hoping that AT&T was different than my last carrier.  thank you

Tutor

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2 Messages

2 years ago

so it is a 63% increase of just because (get the k-y) we can and you can't do diddly about it fee........ gotcha

lizdance40

ACE - Sage

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76.9K Messages

2 years ago

So I did some poking on Verizon, my former carrier.  Seems ATT may once again be just monkey see monkey do as the admin fee has been $1.23 for months

 

2A6BCC42-8720-4A71-892A-C31B793736E3.png

🐾 I don’t work for AT&T or any carrier. Never have, never will. My replies are based on experience and reading content available on the website. If you posted personal information, please edit and remove.

Award for Community Excellence 2019 Achiever*
*I am not an AT&T employee, and the views and opinions expressed on this forum are purely my own. Any product claim, statistic, quote, or other representation about a product or service should be verified with the manufacturer, provider, or party.

Contributor

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2 Messages

2 years ago

Thanks MicCheck, nothing expected, I am stupid, but not that stupid, but I really do appreciate that you took the time to respond..  I just needed to vent because I work for a large corporation, like ATT, for 40+years, the last 25 in the management realm, seen increases like these, know that people pushing them: 1) do not deal with you and I, the paying customers 2) feel most people are not even going to notice 3) know that they owe us no explanation 4) are probably the same people who are benefiting from the "administrative fee" more that Melissa and the poor phone operator who is getting yelled at every time there is an increase, cable or dish outage.  I been in those rooms, I am not invited back anymore though as I voiced my displeasure, the stuck me off in a remote office, oh well the price you pay, at least I am still working.

Contributor

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2 Messages

2 years ago

I would just like to say "thank you" to lizdance40 and MicCheck.  

 

The note at the bottom of lizdance40's post says, the answers are "honest, but not always appreciated".

Well I appreciate them - and they sure seem to be honest and factually correct. I wish every forum had people in roles like this! 

Of course employees are likely in a more conflicted, or difficult, position and cannot respond as candidly (even if they would like to)

But it is nice to just get a straight answer.

 

To answer another poster's question - I saw an estimate on a different site that the increase is worth about $500M to ATT's bottom line.  In the spirit of lizdance40 and MicCheck - I have not made any attempt to calculate or verify that estimate.

 

Am I happy about the increase?  No, of course not.  But I do have some (limited) options if I get really unhappy.  And in the grand scheme of things - and extra $4/month isn't going to kill me (I have multiple lines on my account).  

It is just refreshing to have candid, objective, accurate, and concise posts on a forum!

Thanks again.

overwatch

Mentor

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50 Messages

2 years ago

Just an added clarification... the several articles that estimated that the increase added $500 million to AT&T's revenue was for the initial increase years ago (2014, I believe)... this latest bump up to $1.23 more than doubles that 2014 Administrative Fee. Going by those original estimates, this additional fee has added more than a billion dollars to AT&T's bottom line. The thing is, as both an AT&T customer and a stock holder, that increase has cost me as a customer and has done nothing to increase the stock value... so I just wonder where the money has gone and who has actually benefited?

GLIMMERMAN76

ACE - Expert

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20.1K Messages

2 years ago


@overwatch wrote:

Just an added clarification... the several articles that estimated that the increase added $500 million to AT&T's revenue was for the initial increase years ago (2014, I believe)... this latest bump up to $1.23 more than doubles that 2014 Administrative Fee. Going by those original estimates, this additional fee has added more than a billion dollars to AT&T's bottom line. The thing is, as both an AT&T customer and a stock holder, that increase has cost me as a customer and has done nothing to increase the stock value... so I just wonder where the money has gone and who has actually benefited?


Does everyone think these 5g upgrades are going to be cheap?  Att has spend billions on wireless spectrum over the last 2 years and the admin fee is a way to offset those costs.

 

https://arstechnica.com/information-technology/2017/05/verizon-outbids-att-for-nationwide-5g-spectrum/

Award for Community Excellence 2019 Achiever*
*I am not an AT&T employee, and the views and opinions expressed on this forum are purely my own. Any product claim, statistic, quote, or other representation about a product or service should be verified with the manufacturer, provider, or party.
overwatch

Mentor

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50 Messages

2 years ago

??.  Administration Fees, by definition, are not earmarked for wireless build out costs.

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