AT&T Milks an Extra $500 Million from Customers Just 'because they can'

Discussion in 'Android News' started by dgstorm, May 24, 2013.

  1. dgstorm

    dgstorm Editor in Chief
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    [​IMG]

    AT&T just enacted a new administrative fee of $.61 cents to the bills of its wireless subscribers. Most people won't even bat an eye at such a paltry price increase, and apparently AT&T is counting on that. At worst, when some folks see the fee they may have a twinge of frustration that a new fee has been added, but its small amount might not even get the attention of others. What is interesting is that this new fee will actually generate over $500 Million more dollars for the company, and there is no reason for it whatsoever. In fact, a research analyst recently commented that the only reason they are adding this fee is simply "because they can."

    Joe Hoffman, principal analyst at ABI Research said, “Why would AT&T do this? Because they can, and it is all in the pricing strategy. Now that AT&T is comfortable with their shiny new pricing tools and flexibility that comes with them, looks like someone in the Executive MBA program has discovered Price Elasticity of Demand.” Furthermore, there is talk that they may even introduce slight increases to this fee over a period of six to nine months, just to gauge the reaction.

    Mr. Hoffman elaborated,

    What do you guys think? At what level would a price increase start sending you heading for another carrier?

    Source: BGR
     
  2. johnomaz

    johnomaz Silver Member

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    My wife's contract is up with Verizon next month and the plan is for her to go to tmobile. If the service is good and the speeds are good I'll be joining her when my AT&T contract is up. TMobile isn't perfect but AT&T and Verizon are cesspools.
     
  3. sNuFfYStiGLiTZ

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    I switched from Verizon to sprint and finally now I'm on T-Mobile with an unlocked nexus 4. I'm loving it. The HSPA+ speeds are pretty damn good.
     
  4. kodiak799

    kodiak799 Gold Member

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    I didn't think they could change contract terms like that (applies to fees as well as the rates). Thought VZW tried something similar and they got smacked for it.
     
  5. pc747

    pc747 Administrator
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    At&t just trying to do like big bro.

    [​IMG]
    Man im badly rooting for T-mobile to get more coverage.
     
  6. johnomaz

    johnomaz Silver Member

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    Its supposed to be good in my area and I'm really hoping it is. Before I got LTE from ATT, the HSPA speeds were just fine for me. I'm not a bandwidth monster. I'll be happy with 5down and 2up and those are very easy speeds for H+ to get to.
     
  7. Dalvik_Cache

    Dalvik_Cache Super Moderator
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    Sounds about right.
     
  8. Crankintopwater69

    Crankintopwater69 Silver Member

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    If you're not with Tmo,then Im saving a seat just for you.
     
  9. ruvy01

    ruvy01 Member

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    also just left vzw for T-Mo and im loving it. i actually get faster tmos hspa speeds than vzws lte at my house :/
     
  10. pc747

    pc747 Administrator
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    Right now the t mobile thing for most of us is based on location.

    Sent from my SAMSUNG-SGH-I317 using Tapatalk 2
     
  11. Crankintopwater69

    Crankintopwater69 Silver Member

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    I'm loving this wifi calling.



    Sent from my HTC One using Tapatalk 2
     
  12. boidsonly

    boidsonly Active Member

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    ATT is still looking to replace the lost revenue over the failed carrier merger. First they raised rates on U-Verse customers for no reason (other than "just because they could"). I canceled that month. Now they are gouging their mobile customers; and this is only the start.
    I was seriously considering moving to ATT from VZW (my contract ended on the 19th of this month) because I wanted the LG OG Pro. Hey ATT! Guess what? I will not be coming to your network.
    and I will not get the LG OG Pro :mad: Oh well...plenty of nice phones to choose from that are not on ATT.

    When I get back from vacation I am going to take a very serious look at T-Mo.
     
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