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AT&T Raises Prices, Despite Its Promise to Lower Them

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AT&T hikes fees after a promise to cut prices

AT&T promised its Time Warner merger would lower consumer prices. Instead, it quietly more than doubled an administrative fee and raised DirecTV Now — and customers are paying.

1 A Promise to Lower Prices

Just a few months ago, when AT&T sought approval for its merger with Time Warner, it promised that the deal would allow it to lower prices for consumers. Following the costly acquisition of Time Warner, it looks like the opposite is happening.

AT&T is looking for new sources of revenue and it’s mostly at customers’ expense — a pattern that shapes how the major carriers rank.

2 The Quiet Administrative Fee Hike

The corporate giant’s first move? To quietly bump its “administrative fee,” currently a line item at the end of a customer’s bill and one of the clearest examples of hidden fees on your bill. The fee more than doubled from 76 cents to $1.99, a $1.23 increase, affecting about 85% of AT&T’s 64.5 million postpaid phone lines in service. This fee comes right in time for AT&T’s closure of its deal with Time Warner, and is set to add about $800 million in annual revenue.

3 DirecTV Now Goes Up, Too

But after its $85.4 billion purchase of Time Warner, AT&T is still under pressure. That’s bad news for customers, who are paying the price of this costly purchase. Just a few days after its sneaky administrative fee hike, the corporate giant announced that it is increasing the cost of its streaming service DirecTV Now by $5 per month across the board on most packages.

4 What AT&T Argued Before the Merger

Prior to the merger, the corporate giant dismissed the Justice Department’s argument that the merger would, in fact, raise prices. According to AT&T’s post-trial brief, “the evidence overwhelmingly showed that this merger is likely to enhance competition substantially, because it will enable the merged company to reduce prices …”

The filing stated that consumer should see price benefits quickly after the acquisition is complete. Ironically, the exact opposite has occurred. Although AT&T claims that these price hikes can be attributed to market forces, it certainly seems like they are looking for more revenue after such a costly merger.

5 How Billshark Can Help

In the meantime, the Sharks at Billshark are on it. Contact us for AT&T bill negotiation to help you fight the corporate giants and lower your monthly bills.

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Frequently Asked Questions

Why did AT&T raise prices after the Time Warner merger?

When AT&T sought approval for its merger with Time Warner, it promised the deal would let it lower prices for consumers. After the costly acquisition, the opposite happened. AT&T is looking for new sources of revenue, mostly at customers' expense, and began raising fees and service prices despite its earlier promise to cut them.

How much did AT&T's administrative fee increase?

AT&T quietly more than doubled its administrative fee, a line item at the end of a customer's bill, from 76 cents to $1.99. That $1.23 increase affects about 85% of AT&T's 64.5 million postpaid phone lines in service and is set to add roughly $800 million in annual revenue, timed to the closure of the Time Warner deal.

Did AT&T raise the price of DirecTV Now?

Yes. Just a few days after the administrative fee hike, AT&T announced it was increasing the cost of its streaming service DirecTV Now by $5 per month across the board on most packages, adding to the pressure on customers paying the price of the company's $85.4 billion Time Warner purchase.

What did AT&T argue about prices before the merger?

Prior to the merger, AT&T dismissed the Justice Department's argument that the deal would raise prices. Its post-trial brief stated the evidence overwhelmingly showed the merger was likely to enhance competition substantially because it would enable the merged company to reduce prices, and that consumers should see price benefits quickly after the acquisition.

How can Billshark help with rising AT&T bills?

The Sharks at Billshark are on it. You can contact Billshark to help fight the corporate giants and lower your monthly bills. Rather than absorbing higher administrative fees and service price increases, customers can have Billshark work to reduce what they pay each month.

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AT&T promised lower prices after the Time Warner merger, then doubled its administrative fee and raised DirecTV Now. See what changed and how to save.

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AT&T promised its Time Warner merger would lower consumer prices.

Just a few months ago, when AT&T sought approval for its merger with Time Warner , it promised that the deal would allow it to lower prices for consumers.

AT&T is looking for new sources of revenue and it’s mostly at customers’ expense — a pattern that shapes how the major carriers rank .

The corporate giant’s first move?.

But after its $85.4 billion purchase of Time Warner, AT&T is still under pressure.

Prior to the merger, the corporate giant dismissed the Justice Department’s argument that the merger would, in fact, raise prices.

The filing stated that consumer should see price benefits quickly after the acquisition is complete.

In the meantime, the Sharks at Billshark are on it.

When AT&T sought approval for its merger with Time Warner, it promised the deal would let it lower prices for consumers.

AT&T quietly more than doubled its administrative fee, a line item at the end of a customer's bill, from 76 cents to $1.99.

Yes.

Prior to the merger, AT&T dismissed the Justice Department's argument that the deal would raise prices.

The Sharks at Billshark are on it.

Billshark negotiates your bills for you — no savings, no fee.

Billshark helps lower internet, wireless, cable, satellite radio, and other monthly bills.

Our experts handle providers for customers and share updates throughout the process.

Customers pay only when Billshark finds savings on eligible bills.

1 A Promise to Lower Prices.

2 The Quiet Administrative Fee Hike.

3 DirecTV Now Goes Up, Too.

4 What AT&T Argued Before the Merger.

5 How Billshark Can Help.

Frequently Asked Questions.

Why did AT&T raise prices after the Time Warner merger?.

How much did AT&T's administrative fee increase?.

Did AT&T raise the price of DirecTV Now?.

What did AT&T argue about prices before the merger?.

How can Billshark help with rising AT&T bills?.

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