AT&T postpaid customers began experiencing higher monthly fees and plan price increases as of December 1st. This adjustment includes a 14.3% rise in monthly fees as well as an increase in the Administrative & Regulatory Cost Recovery Fee, which affects every line on an account. The fee, which helps the carrier offset various operational and regulatory expenses, increased by 50 cents per line per month, totaling an additional $6 annually per line.
Details on the Administrative & Regulatory Cost Recovery Fee Increase
Effective December 1st, AT&T raised its monthly Administrative & Regulatory Cost Recovery Fee from $3.49 to $3.99 per line. This fee covers costs related to connecting with other networks, leasing cell towers, and government-imposed charges such as Wireless Tower Mandates, State Consumer Privacy Laws, and Federal Privacy-Related Mandates. An AT&T representative explained that these fee adjustments are regularly made to support ongoing investments in the network’s maintenance and technology enhancements aimed at providing high-quality service.
AT&T has raised the monthly per-line Administrative & Regulatory Cost Recovery Fee starting December 1st. | Image credit: AT&T
Offsetting the New Charges
Subscribers who have not yet enrolled in Paperless Billing and Autopay have an opportunity to reduce these new fees. By signing up for Autopay using an eligible bank account, customers can save $10 per month. Alternatively, enrolling with a debit card saves $5 per month. Notably, only the AT&T Points Plus Card from Citi is accepted for credit card autopay, which also offers a $5 discount per month.
Price Increases on AT&T Fiber and Internet Services
Starting December 1st, current AT&T Fiber and Internet customers also faced a $5 monthly price increase. AT&T CEO John Stankey commented on these pricing adjustments, underscoring that price hikes are timed to coincide with added value for customers, such as enhanced network performance driven by new spectrum deployment and technology investments.
Comparison With Other Carriers
AT&T is not alone in charging such fees. For instance, T-Mobile's Regulatory Programs & Telco Recovery Fee serves a similar purpose, with T-Mobile stating that the fee helps recover costs already incurred and ongoing. Verizon also imposes an Administrative and Telco Recovery Charge each month. AT&T’s increased fee of $3.99 per line now aligns exactly with T-Mobile’s fee, while Verizon’s charge remains at $3.50 per line.
Customer Perspectives and Company Disclosure
According to AT&T’s website, this fee is not mandated by the government but is instead collected at the company's discretion. It may even cover costs AT&T incurred in previous years that are yet to be fully recouped. This has prompted debate among customers about whether AT&T should be charging this additional fee at all.
Current poll results indicate the majority of voters disapprove of the fee, with 95.83% opposing it.
