Many AT&T customers will see their monthly bills increase by $4 to $5 starting December 1st. AT&T charges its customers several fees, including a recurring monthly “recovery” fee that helps the phone company recoup certain expenses. According to the company, some customers have already seen this increase, and starting this month it will be extended to the rest. The goal is “to ensure we continue to provide you with the quality service and support you deserve. The price of your residential internet plan will increase by $5 per month starting December 1, 2025,” the company’s official statement reads.
AT&T, the third-largest wireless carrier in the United States behind T-Mobile and Verizon, is raising its fees to recover administrative and regulatory costs, which it considers essential
AT&T has confirmed it will raise prices by $5 per month on all its internet plans, adding to the $5 monthly increase already implemented in November 2024 and, apparently, for some customers in 2023. AT&T, the third-largest wireless carrier in the United States behind T-Mobile and Verizon, is raising its fees to recover administrative and regulatory costs, which it considers essential. According to official sources, the company earned $4.9 billion in net profit during those three months and $12.3 billion in net profit for all of 2024.
The increase will not affect customers who signed up last year or those through AT&T’s Access from AT&T program for low-income households
The Administrative and Regulatory Cost Recovery Fee (TAR) was previously $3.49 per line per month, but it will now increase to $3.99, according to The Sun. However, the increase will not affect customers who signed up last year or those through AT&T’s Access from AT&T program for low-income households. In simpler terms, this fee helps AT&T recover certain expenses, such as the interconnection fees the mobile carrier or its agents pay to connect with other providers, as well as base station rental and maintenance costs. Here’s how the experts explain it.
The company says, the fee can help recover payments for certain government fees imposed on AT&T, such as Wireless Tower Mandate Costs
It’s important to stay informed about changes in billing from the various companies you subscribe to. Emails warning of these price increases aren’t always sent, so if you’re an AT&T customer, we recommend checking your contract terms. These types of fees are imposed as an extra cost to help the company cover certain expenses, as they themselves explain. The fee can also help the company recover payments for certain government fees imposed on AT&T, such as Wireless Tower Mandate Costs, State Consumer Privacy Laws, and Federal Privacy-Related Mandate Costs.
“To continue providing the high-quality service you expect, we need to adjust the prices of our internet plans as our business needs change and costs increase”
The company also cites the price increases as a way to continue investing in improving its services. “To continue providing the high-quality service you expect, we need to adjust the prices of our internet plans as our business needs change and costs increase,” stated AT&T on its website. The company emphasizes that the price increase is necessary for users or customers to continue enjoying good internet service.
“We don’t raise prices just for the sake of raising them. We raise them when we believe we’ve offered greater value to the customer and we try to adapt to that change,” said John Stankey, CEO of AT&T. Meanwhile, Verizon and T-Mobile, for example, have their own pricing for this recovery and investment program. In fact, Verizon’s charge is currently $3.50, but it also faced a price increase in December 2024. In conclusion, the price increase will take effect one way or another, and if customers disagree, they should visit an office or contact the official website to discuss the specific details of their contract.