AT&T’s new administrative fee will make the company half a billion dollars richer every year

If you’re on AT&T, then starting this month you’re going to see an extra $0.61 fee added to your phone bill under the line item “administrative fee”. According to 9to5Mac, this fee helps “cover certain expenses, such as interconnection and cell site rents and maintenance.”

Now let’s do some math, shall we? AT&T has over 70 million customers who are on post-paid contracts. So that’s $0.61 per month multiplied by 12 months in a year multiplied by 70 million. The answer is $512,400,000. No, that’s not a typo, that’s half a billion dollars.

The Tech Block notes that since AT&T has changed the terms of your contract by adding this new fee, you’re technically allowed to terminate your contract without facing any penalties. And you know what? You should. Earlier today there was a story on MacRumors that said AT&T was going to bring 4G LTE to their prepaid plan. For $65 per month you get unlimited talking, texting, and 1 GB of data. If you’re not a heavy data user, then switch. Same network, lower price. You’ll have to buy your next iPhone full unlocked and unsubsidized, which will cost you over $600, but you more than make up for it by having a lower monthly bill.

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Categories: AT&T