Tutor
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Were customers notified in advance about the 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?
Tutor
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1 Message
Were customers notified in advance that there was a 65% increase in the administrative fee (to defray certain expenses ATT incurs) this month?
SavetheCrew
Contributor
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2 Messages
6 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.
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oldwilton
Contributor
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2 Messages
6 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.
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overwatch
Mentor
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50 Messages
6 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?
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GLIMMERMAN76
ACE - Expert
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23.9K Messages
6 years ago
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/
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overwatch
Mentor
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50 Messages
6 years ago
??. Administration Fees, by definition, are not earmarked for wireless build out costs.
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MicCheck
ACE - Expert
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14.2K Messages
6 years ago
For a $1 fee to add $500 million in revenue, AT&T would have to have 500 million lines in service. The latest 10K indicates they have 157 million wireless subscribers. 157 million customers at $1.23 each is ~$193 million.
And that's to the TOP line, not the bottom line. That fee is to offset costs AT&T incurs, mean that (in theory) it shouldn't affect the bottom line at all.
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overwatch
Mentor
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50 Messages
6 years ago
You are missing a lot of info... such as that many subscribers have more than one line... Family Plans and Business Plans are very popular. Go Google for the original "Administrative Fee AT&T" articles to learn more.
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overwatch
Mentor
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50 Messages
6 years ago
AT&T should just try a new "honesty campaign" and call the Administrative Fee what it is... a Periodic Price Increase Adjustment. The problem is, they are too caught up with marketing speak and trying to candy-coat simple facts, thus obfuscating the truth and appearing dishonest.
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MicCheck
ACE - Expert
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14.2K Messages
6 years ago
Each line is considered to be a subscriber. A five-line family plan has 5 subscribers. AT&T doesn't care about how many people use then, and would have no way to calculate.
I saw a couple of sites that claimed the initial introduction of the admin fee would add $500 million in revenue. For a $.61 fee to do that, there would have to be 819,672,131 individual, post-paid lines. That means every single American would have to own 2 AT&T cell phone lines, with many owning 3. Does that seem reasonable?
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MicCheck
ACE - Expert
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14.2K Messages
6 years ago
You know why it's called "candy coating?" Because people really like eating candy! It's very popular. While you might think a different name would be preferable, history shows the majority of consumers disagree.
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