AT&T Increases Admin Fee In Move that Scores It $800 Million
AT&T has quietly increased the administration feed charged to its wireless customers from $0.76 to $1.99. Multiplied monthly by its 64.5 million postpaid wireless customers and the increase boosts AT&T's revenue by some $800 million per year. AT&T says the fee has not been raised in several years. "This is a standard administrative fee across the wireless industry, which helps cover costs we incur for items like cell site maintenance and interconnection between carriers," claimed the company in a statement. The increase was first noticed by BTIG Research analyst Walter Piecyk. All carriers tack vague fees onto monthly bills. The move comes just a week after AT&T closed its acquisition of Time Warner. "Presumably the administrative fee is another way to help AT&T fund its network build and Time Warner acquisition going forward," said Piecyk.
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