“Administrative Fee” is just one of the whole list of fees that telecom operators are charging its customers and is just been raised but many customers will not even notice it or be aware.
The administrative fee was $0.76 per customer, but now it is $1.99, nearly tripling the cost of this fee. After some research done by BTIG Research Analyst Walter Piecyk, it appears that AT&T would rake in nearly $1 billion in wireless revenue from this small change.
AT&T hasn’t announced the price increase, but when asked about it, AT&T stated that this is similar to how other carriers raise fees from time to time. And also mentioned that this fee had not been changed in several years. An AT&T spokesperson told Fortune that “this is a standard administrative fee across the wireless industry, which helps cover costs we incur for items like cell site maintenance and interconnection between carriers.”
After purchasing Time Warner earlier this month and making the deal official, AT&T is likely under pressure to find new ways to bring in revenue and make that money back that it paid for Time Warner.
Operator paid a whopping $108 million for Time Warner, which will pay off over time, but it is also inheriting a ton of debt, and it now has the most debt among telecommunications companies, thanks to Time Warner.