A new administrative fee being added to postpaid mobile bills will translate to at least $500 million in additional revenue for AT&T.
As of May, AT&T has added a new fee to its list of mobile charges (for Consumer and Individual Responsibility User
(IRU) lines), allowing them to bring in even more money into the company. The ‘Administrative Fee’ adds an additional $0.61 per month (or $7.32 per year) per line to your bill to help with interconnection fees between other carriers and cell tower maintenance and rentals.
After being brought to attention in an AT&T forum, the AT&T rep described why the costs were added and was quick to point out that even with the new fee, they were still cheaper than their competitors:
“Even with this Administrative Fee, AT&T’s average per-line fees will be less than those of most of our competitors.”
In retrospect, an additional 61 cents per month may not seem like a lot on an individual basis, but multiple that to the 70 million personal and business postpaid customers and it translates to at least $500 million in addition revenue for the company. What they’re really doing with it, well we’re not sure.