What is the $5 charge on AT&T bill?
Recently, many AT&T wireless bills have included a rather ambiguous charge of $5 for an unknown service. This $5 fee is only referred to as an ‘administrative charge’; it is something that AT&T has been charging its customers for several years now.
The AT&T $5 Administrative Fee has been explained in the previous question.
The $5 administrative fee is a monthly fee that AT&T Internet claims will be used to recover several administrative aspects as far as offering you wireless phone service is concerned. These costs could be billing costs, account maintenance costs, and other customer service costs.
As used by AT&T, the administrative fee is explained as a way to help recover costs that are not already recovered through the monthly fees you pay for your voice and data plans. In other words, it is another form of the surplus charge to compensate for the shortfall in their income under the guise of administrative expenses.
This fee used to apply to new customers only, but now it applies to existing AT&T wireless customers as well, whether they are consumers or business clients. Surprisingly, even the basic GoPhone prepaid plans are charged this $5 fee every month.
The administrative charge was introduced in the AT&T bills starting from 2013 and initially, it was in the range of 0.61 cents. Previously, AT&T charged a minimal fee of $1 per month, but it has gradually raised the amount to the current rate of $5 per month.
What do people on the AT&T side have to say about the fee?
Regarding the administrative fee, AT&T explains that it is aimed at covering certain unspecified expenses and stresses that other wireless carriers also employ such fees as rather common.
It is worth pointing out that Verizon, T-Mobile, as well as Sprint have similarly priced fees, however, AT&T currently charges $5, which can be considered relatively high for the service. Because the company persists in raising it year after year while adding it as a tacked-on extra cost, customers are becoming ever more sensitive to the charge.
In a statement about administrative fees, here's how AT&T explains their reasoning: In a statement about administrative fees, here's how AT&T explains their reasoning:
“It is a common administrative fee in the wireless industry that allows us to recover some of the expenses we have for such things as cell site servicing and carrier interconnection."
Can I remove the $5 AT&T Fee?
However, the $5 administrative charge is universal for all AT&T customers, which means that it cannot be eliminated from the current AT&T bill. Whether you are in a mobile plan or subscribing to particular services, that additional $5 will be added to your monthly bill.
AT&T, however, does not offer its customers a way to avoid this fee. And given how vague the “administrative costs” description is, you most likely won’t gain much regarding its specifics when arguing with AT&T Customer Service.
The only option available is to transfer to another service provider that does not charge an administrative fee or charges a lower fee. However, it is important to note that other bigger players such as Verizon and T-Mobile have also adopted similar monthly fees.
Steps to Attaining Lower AT&T Rates
While the confusing administrative charge feels unfair, here are some practical tips to lower your overall AT&T bill amount each month: While the confusing administrative charge feels unfair, here are some practical tips to lower your overall AT&T bill amount each month:
• Check your wireless plan usage – You should switch to a cheaper plan if you are spending a lot of money on additional data or additional services that you do not utilize regularly. The newer, unlimited plans may be more expensive including the fee.
• Take advantage of autopay/paperless billing discounts – They range from $5 -$ 10 per month which can ease the burden of the admin fee.
• Look for employer/student deals – Many big businesses and universities have special AT&T promotions that you could take advantage of.
• Purchase refurbished phones – getting a new phone at full price costs you more in the long run over the years. It has also been noted that purchasing refurb models outright can be more cost-effective than renting by $15+ per month.
The Bottom Line
The $5 administrative fee of AT&T is not something that is gone or will be reduced shortly. Attempting to dispute the accusation is often fruitless because of its random nature. As I have mentioned earlier, it is annoying but it would be more effective if we start focusing on other methods for reducing the total AT&T bill monthly. It is important to become a smart customer and it is possible to offset the loss from the boring but unexceptionable admin fee by changing your wireless plan or using different vouchers.
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