AT&T continues its quest to make landline service a really bad deal with the introduction of a new bill-padding fee that wireless customers will not have to pay.
AT&T’s $1.99 “Tennessee Regulatory Inspection Fee” appeared on customer bills in March, much to the surprise of customers.
“My regular service is only 22 bucks,” Charles “Buck” Meyer told the Chattanooga Times Free Press. “If they add $2 to it, that’s almost a 10 percent increase. I’ve been on the fence about switching off my landline for some months, and this could be the thing that pushes me over the edge.”
AT&T says it is entitled to recoup the money it pays to the Tennessee Regulatory Authority. The $1.99 fee appearing on March bills is a “one-time” fee until AT&T figures out how much it plans to charge customers on an ongoing basis. Most companies subject to TRA fees build them into the monthly cost of the service. AT&T is the only phone company in the state to break the fee out on the bill and collect the money separately.
In 2009, when the company lobbied for widespread deregulation of phone bills in Tennessee, it claimed deregulation would not bring about increased rates.
Meyer does not see it that way. He considers AT&T’s new fee a stealth rate hike.
“Slip a little line item on there that’s just a couple bucks and is a one-time deal,” he told the newspaper. “Then pretty soon it’s on there every month.”
The new fee is permitted because of a 2009 change in Tennessee’s statutes that now allow companies to pass along regulatory fees on customer bills.
Companies like AT&T heavily lobbied for statewide deregulation of telephone bills that year, and spent $180,000 in campaign contributions to lawmakers, their political action committees or party organizations. AT&T hired at least 20 lobbyists to help push deregulation through the Tennessee legislature. Critics of the bill warned its passage would lead to rate increases, something AT&T denied at the time.
AT&T Tennessee president Geoff Morton told the Times Free Press back in 2009, “the company needs to compete with rivals and is not interested in raising rates.”
AT&T refused to say how much it will collect from the new fee, but Morton said the company is now lobbying for another law that would gut the fees AT&T pays to the TRA to oversee the quality of phone service in the state.
“In the previous administration, telecommunications inspection fees increased despite a dramatic decrease in telecommunications services regulated by the commission,” AT&T spokesman Bob Corney told the newspaper. “We are hopeful that legislation will pass this session to reduce the regulatory burden on landline telephone customers in Tennessee.”
[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/WMC Memphis ATT Mystery Fee 3-21-13.mp4[/flv]
WMC’s “Ask Andy” segment has some non-answers from AT&T about their new $1.99 “regulatory authority inspection fee.” When the Memphis consumer reporter called AT&T, the company said, “no comment.”(1 minute)