AT&T has added a new administration fee to the monthly bills of all its customers. The fee amounts to 61 cents, which, when multiplied across AT&T's entire customer base, amounts to about $500 million in extra revenue per year for the company. An AT&T spokesperson told the Wall Street Journal that the fee is less than that charged by its competitors. It went into effect May 1.
The only section that really references this is kinda loosely worded which is:
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.
IF WE INCREASE THE PRICE OF ANY OF THE SERVICES TO WHICH YOU SUBSCRIBE, BEYOND THE LIMITS SET FORTH IN YOUR CUSTO... (continues)
Cell phone companies love to deflate the cost of the services they advertise to their customers by pushing the cost to another fee that they don't promote. Following AT&T's logic, why not simply replace the $30 family messaging plan with a $5 family messaging and a mandatory, and hidden, $25 administrative fee? Its been a while, but I'm fairly certain I was on an everything unlimited plan with Sprint for $99 that had a unmentioned smartphone fee.
I don't understand how these practices are even legal: how can you advertise one price for a service and then apply a additional mandatory fee for that same service? I guess that's the power of fine print, but it is very manipulative (and very reminiscent of our income tax system with its F... (continues)
I agree. I am so fed up with the fees. I don't need a smartphone, I just prefer a heavy duty rugged phone, which I can get for cheap on Ebay. Once I am done with my contract with my carrier, I am going to go prepaid.
If yo tried to cancel, they could issue a one lump-sum credit in the amount of the fee for the remaining months left on your contract. At that point, you it wouldn't be a material change in your contract and you would have to pay the ETF.