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

  • loganexplosion

    How much? How much is enough money?

  • Fab50

    Terms of your contract* not contact

    • iPhoneHacks

      Fixed typo, thanks for pointing it out.

  • Brendon

    1. Terminate your contract.
    2. Start a new one and buy an iPhone 5 for $199
    3. Switch back to your old phone
    4. Sell the new one for $500+

  • Apple Mania

    I’m Sorry but isn’t that what we pay line rental for…? Jokers – Jog on

  • JCT

    lol arent you paying a monthly bill already that includes that or they going to say that the monthly bills of theirs never factor the rent

  • f_uck ATT

    I called AT&T to contest the new charge and I also filed complaints with the FCC and Federal Trade Commission. I’ll join in on a class action suit if anyone is up for it. lol

  • Bryant D Thomas

    So what is being said is that I can cancel my contract after seeing this fee? Correct?

  • Josh

    Anyone successfully get out of their contract yet?

    • MRX

      I tried and got transferred to the cancellation department. The manager said that ATT was not breaking their contract and he didn’t have the authority to waive the ETF. He also stated that if I knew the contract, I should be able to resolve it and its in section 3. He was a jerk by the name of William and i forgot his last name. No luck on this end. If anyone is able to get out, please help.

  • Trung

    You can cancel your contract without a early termination penalty fee, but you still have to pay the remaining balance of the phone.

  • TT

    I’ve talked to the cancellation department, and under section 1.3, they have the right to increase the administrative fee, , a Really nice guy name Matt, so he ended give me 6 months of free text message, thats 180$ saving. SWEETTT