AT&T to Make $500M ... by Charging You 61 Cents
New administrative fee went into effect May 1
By Kate Seamons, Newser Staff
Posted May 24, 2013 8:20 AM CDT
In this Wednesday, Oct. 17, 2012, file photo, an AT&T logo is displayed on an AT&T Wireless retail store front, in Philadelphia.   (AP Photo/Matt Rourke, File)

(Newser) – If you're an AT&T wireless customer, your May bill will feature a new charge: a 61-cent monthly administrative fee. Before you pooh-pooh it as small potatoes, consider this: The Wall Street Journal reports that the move could tally up to an extra $518 million for the company in 2014. And the charge is far from an unusual one; Sprint and Verizon levy $1.50 and 90-cent administrative fees, respectively.

But just because they're routine doesn't mean they're easily swallowed: AT&T says the new fee covers "certain expenses, such as interconnection and cell-site rents and maintenance." But the research director at Free Press complains that those administrative fees are just the "cost of doing business." And by imposing this new fee, AT&T's top line will look a little prettier: One analyst expects the fee will boost the company's 2013 revenue growth by 0.3 percentage points.

More From Newser
My Take on This Story
To report an error on this story,
notify our editors.
AT&T to Make $500M ... by Charging You 61 Cents is...
Show results without voting
You Might Like
Showing 3 of 27 comments
May 28, 2013 1:23 AM CDT
This is a white collar crime, period. Just because they have a captive audience AT&T will profit. Just looking lke the oil companies, tobacco companies and electricity companies.
May 26, 2013 4:10 AM CDT
So AT&T, (for whom i worked and enjoyed profit sharing and stock matching) pulled down 17+ billion in revenues? Is that a problem? Only for itself over which looms a 39.1% tax on its' profits!
May 26, 2013 12:50 AM CDT
Where's all the protest over the Al Gore tax added to everyone's phone bill that goes into mysterious pockets?