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mmagesh's profile

2 Messages

Thursday, April 18th, 2024 7:49 PM

Taxes, Fees and Surcharges for an Apple watch data plan

Hi, Taxes, Fees and Surcharges for a smartwatch data plan ($10) is too high. My Total comes to around $5.43 in which $1.49 is for Government Fees and the rest is ATT charges (Administrative Fee - $1.99, Regulatory Cost Recovery Charge - $1.50 and few others).

I would like to understand why these ATT charges are NOT different for smartphone lines vs smartwatch lines? Shouldn't these fees be lower for smartwatches compared to smartphones. 

Former Employee

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2.7K Messages

1 month ago

Just because that is how you feel it should be does not mean that is how it is. It’s a flat fee. 

(edited)

ACE - Expert

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24.6K Messages

1 month ago

Whether you think it's too high or not is irrelevant. $10 plus taxes for the smartwatch line is what it is. If you don't want to pay that, then don't get a smartwatch with cellular capability. My AppleWatch is GPS only so it needs to be within a certain distance of my iPhone if I want to make/receive calls etc. on the watch. And being as I have my phone with me >95% of the time, it's no big deal, and I don't have to pay for an extra line.

ACE - Expert

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14.3K Messages

1 month ago

The Administrative Fee is just a made up charge, so there's no reason to think it would be different based on the product using the line. 

The Regulatory Cost Recovery Charge is to recouple want AT&T has to pay. The government doesn't differentiate between the purpose of various lines, so there's no reason to think AT&T would either.

ACE - Sage

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117.8K Messages

1 month ago

Just because you feel it should be less doesn't mean the government (fed, state and local) agrees with you and doesn't mean the government doesn't charge those taxes

And at&t is allowed to pass them on

2 Messages

1 month ago

Thanks for the responses and i do understand that it's my choice to keep this service or cancel it.

Btw, Here is the official AT&T description of these charges. 

Administrative Fee

This monthly fee helps AT&T recover a portion of certain expenses it may incur 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. It isn’t a tax or charge which the government requires AT&T to collect from its customers. The fee amount may change.

Regulatory Cost Recovery Charge

The Regulatory Cost Recovery Fee helps AT&T recover the cost to comply with certain government-imposed regulatory requirements including, but not limited to Wireless Number Portability, Number Pooling, and E911. It isn’t a tax or charge which the government requires AT&T to collect from its customers. The amount we charge may change.

(edited)

ACE - Master

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10.7K Messages

1 month ago

They may not be legally forced to collect the fees, but they can and do as a cost of business.   People can choose to business elsewhere.

ACE - Sage

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117.8K Messages

1 month ago

Admin fee is a nonsense money grab.  Verizon charges $3.30.  it's profit.  Taxes are fine, ATT doesn't have a choice but pay.  I'm fine with paying to reimburse.  

I would switch to prepaid, but as a family group plan I pay less with postpaid, even with the increased taxes and admin fee 

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