why is the Admin Fee increase $0.5 per mobile line?

[cindyben]

In the latest April bill I'm seeing an increase of $0.5 in Administrative Fee on each of the ten lines in our mobile family plan. Is everyone else seeing the same increase? Is this justified / has ATT ever announced or explained the fee increase? Has anyone had successful experience asking for a bill correction? Thanks.

[ATTCares]

Hello @cindyben,

It is my understanding you have questions about the administrative fee increase.  We understand the need to know what certain charges are for.  I will do my best to answer your questions.

The administrative fee is used to defray costs AT&T incurs to use other carriers equipment to deliver calls, and also helps offset cell site rental, and maintenance fees.  These fees increased for all customers on April 1st, 2108.

Please visit our additional charges page for detail on all additional charges.

Thank you for being part of the Community Forums, and have a terrific weekend.

Anthony, AT&T Community Specialist

[marking]

@ATTCares,

thanks for your reply.  Did ATT send out a notice of this increase? I have checked my email and didn't see anything.  Also this is a large increase of 65%, which is significant... especially when you multiply it across every phone line (and some accounts have multiple phone lines). So this means that the costs you mentioned above have also gone up 65%? Please help me understand.  Thanks! 

[lizdance40]

@marking

ATT is not required to notify customers of tax and fee changes.  Only changes is charges for your service.

https://www.att.com/legal/terms.wirelessCustomerAgreement.html#canAttChangeMyTermsRates

[marking]

@lizdance40

thank you for the reply.  When I called the ATT help number they said that I had received an email with this information.  I also reached out to ATT help via chat and she said that I had also received an email.  She said she would resend that email to me, which I have yet to see... but supposedly it exists. Although guess someone asked a similar question here (https://forums.att.com/t5/Wireless-Billing/Administrative-fee/m-p/5485702#M135019) and ATT could not confirm or deny if notices were sent. 

Any idea of how we can get a description of what those admin costs are?  I'm also curious to learn if this Admin Fee has also gone down in the past few years - as 65% is a large adjustment  and will probably generate revenues in excess of 500M. Just would be nice to have some clarity. 

Thanks - 

[lizdance40]

@marking

hogwash, no email was sent or is required.  

[Richjo]

This probably has to do with pure greed and that bonus that we users have to pay for and they get a pat on their back and shine in their own glory.

I wonder if the employees got a 65% increase in their pay?

Probably just the top of the ladder and they really needed that pay increase! 

[kyawwin]

I don't remember seeing any email regarding this changes. I do see a bunch of garbage ads email all the time but why not this important one? AT&T is getting so bad taking money from customer despite their cell service is still poor at my location, Round Rock, TX. Please break down all the cost that covered by this admin fees. I would like to see if any of those actually add up to go up 65% increase. Mean while AT&T will make (138.8 million subscribers x 0.5 cents =  69.4 Million dollars) almost 70 MILLIONS dollars per MONTH, that did not include customer with multiple lines. SMH............

[lizdance40]

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@kyawwin wrote:

I don't remember seeing any email regarding this changes. I do see a bunch of garbage ads email all the time but why not this important one? AT&T is getting so bad taking money from customer despite their cell service is still poor at my location, Round Rock, TX. Please break down all the cost that covered by this admin fees. I would like to see if any of those actually add up to go up 65% increase. Mean while AT&T will make (138.8 million subscribers x 0.5 cents =  69.4 Million dollars) almost 70 MILLIONS dollars per MONTH, that did not include customer with multiple lines. SMH............

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@kyawwin

READ THE THREAD.... no notice is required or given for increases in taxes or fees.  It's in your terms of service.   Read the first paragraph.... https://www.att.com/legal/terms.wirelessCustomerAgreement.html#canAttChangeMyTermsRates

[GLIMMERMAN76]

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@kyawwin wrote:

I don't remember seeing any email regarding this changes. I do see a bunch of garbage ads email all the time but why not this important one? AT&T is getting so bad taking money from customer despite their cell service is still poor at my location, Round Rock, TX. Please break down all the cost that covered by this admin fees. I would like to see if any of those actually add up to go up 65% increase. Mean while AT&T will make (138.8 million subscribers x 0.5 cents =  69.4 Million dollars) almost 70 MILLIONS dollars per MONTH, that did not include customer with multiple lines. SMH............

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@kyawwin

It includes all lines...  ATT treats each line as a connection in reporting on their PNL statement.

[MicCheck]

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@kyawwin wrote:

I don't remember seeing any email regarding this changes. I do see a bunch of garbage ads email all the time but why not this important one? AT&T is getting so bad taking money from customer despite their cell service is still poor at my location, Round Rock, TX. Please break down all the cost that covered by this admin fees. I would like to see if any of those actually add up to go up 65% increase. Mean while AT&T will make (138.8 million subscribers x 0.5 cents =  69.4 Million dollars) almost 70 MILLIONS dollars per MONTH, that did not include customer with multiple lines. SMH............

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Post 2 in this thread includes a link that explains the costs covered by the Admin fee.

[rlmay47]

So you are saying that instead of taking money from the regular service charge for our cell bill to pay for your overhead you've invented a seperate charge (admin fees) to offset your cost of doing business? Lets say you have 200,000,000  devices out there, that 50 cent increase makes at&t  increase their revenues by $100,000,000 a month and a massive amount of 1.2 Billion a year. What a deal! 

but if you look at the whole $1.26 it's a staggering $250,000,000 a month and  $3,000,000,000 a year. 

What a fee and another way to market your service making it look less than what really is per month.

[rlmay47]

So you are saying that instead of taking money from the regular service charge for our cell bill to pay for your overhead you've invented a seperate charge (admin fees) to offset your cost of doing business? Lets say you have 200,000,000  devices out there, that 50 cent increase makes at&t  increase their revenues by $100,000,000 a month and a massive amount of 1.2 Billion a year. What a deal! 

but if you look at the whole $1.26 it's a staggering $250,000,000 a month and  $3,000,000,000 a year. 

What a fee and another way to market your service making it look less than what really is per month.

[GLIMMERMAN76]

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@rlmay47 wrote:

So you are saying that instead of taking money from the regular service charge for our cell bill to pay for your overhead you've invented a seperate charge (admin fees) to offset your cost of doing business? Lets say you have 200,000,000  devices out there, that 50 cent increase makes at&t  increase their revenues by $100,000,000 a month and a massive amount of 1.2 Billion a year. What a deal! 

but if you look at the whole $1.26 it's a staggering $250,000,000 a month and  $3,000,000,000 a year. 

What a fee and another way to market your service making it look less than what really is per month.

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@rlmay47

the admin fee has been around for over 5 years all the carriers have it in some way shape or form...  ATT does not even have 200 million customers....  119 million are hit with this fee according to the numbers posted on the P&L statement. 

[schemez]

Att is now raising the administrative fee AGAIN beginning June 8th 2018 to $1.99 per line. Found it on my latest statement.