AT&T customers are now paying higher fees and plan prices.
AT&T customers should brace themselves to pay higher bills.
AT&T is increasing its monthly Administrative & Regulatory Cost Recovery Fee from $3.49 to $3.99 per line. The 50-cent increase amounts to $6 annually per line, which the company says will help it cover expenses, such as costs for connecting to other networks and cell tower rentals. The fee also helps AT&T offset charges imposed by the government, including costs related to wireless tower mandates and privacy laws.
According to an AT&T representative, the company routinely assesses and adjusts fees to account for the costs of maintaining its wireless network. The representative stated that the adjustment will allow them to continue investing in their network and technology to meet customer expectations for high-quality service.
AT&T states on its website that this fee is not a government-mandated tax or charge. The company has the discretion to charge the fee, which may include the recovery of costs from prior years.
Some customers can offset the increase by enrolling in paperless billing and Autopay. Customers using an eligible bank account for Autopay can save $10 monthly, while those using a debit card can save $5. The AT&T Points Plus Card from Citi is the only credit card eligible for Autopay savings of $5 per month.
Starting December 1st, AT&T Fiber and Internet monthly prices increased by $5 for existing customers. AT&T CEO John Stankey stated that the company raises prices when they believe they have given the customer greater value. He added that investments in their wireless network allow them to improve the value-price relationship for customers and recoup their investments.
Other carriers also charge similar fees. T-Mobile's Regulatory Programs & Telco Recovery Fee is "collected and retained by T-Mobile to help recover certain costs we have already incurred and continue to incur." Verizon's Administrative and Telco Recovery Charge is used to "defray and recover certain direct and indirect costs."
With the 50-cent increase, AT&T's Administrative & Regulatory Cost Recovery Fee matches T-Mobile's Regulatory Programs & Telco Recovery Fee at $3.99 per line per month. Verizon charges $3.50 per line per month.