Ahead of key net neutrality vote, AT&T raises obscure fee to make an extra $970 million a year

Screenshot 2018-07-03 at 07.46.55.png

Battling for its life in Sacramento to stop legislation which would preserve net neutrality in California, AT&T Inc.’s wireless customers are expected to pay almost $1 billion more every year to the company after AT&T increased a monthly “administrative fee” in a move that went largely unnoticed, according to an industry analyst.

The analyst, Walt Piecyk of BTIG, initially estimated that AT&T could pocket about $800 million more per year from the higher fee, before revising that figure upward to $970 million once he learned that the fee hike also will affect tablets and smartwatches on AT&T’s network, not just cellphones.

“Some people might not get hit till next cycle,” Piecyk said.

The higher fee reflects a 58% increase over its previous level of $1.26 per line. The fee is now more than three times what it was when AT&T first introduced it in 2013.

via AT&T is raising an obscure fee to make an extra $970 million a year, analyst says

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s