Starting August 5, AT&T is set to raise two billing fees. The Administrative & Regulatory Cost Recovery Fee will climb from $3.99 to $4.99 per line per month, and the Administrative Fee for business and government customers will increase from $2.49 to $3.49 per line.
This is the second increase in eight months for the consumer fee, which was raised from $3.49 to $3.99 last December.
It’s worth noting that AT&T isn’t making these moves from a position of strength. Its postpaid phone churn rate climbed to 0.89% in the first quarter of 2026, up from 0.83% in the same quarter last year, signaling that more customers are leaving, not arriving.
The carrier had already tested customer tolerance in April by raising prices on its retired unlimited plans, delivering a $10 monthly increase to single-line customers and a $20 hike to multi-line customers.
Customer frustration appears widespread. On forums such as Reddit, users voiced being “fed up with the constant carrier price creep” and how fees “keep stacking up”, reflecting the broader dissatisfaction with rising wireless bills from major carriers.
The bigger picture isn’t great either. A December 2025 survey from WhistleOut revealed widespread frustration among Big 3 carrier customers. 42% reported that their phone bills had risen over the past year, roughly a third feel they’re paying too much for the service, and more than half are leaning toward switching carriers.
AT&T has been trying to fight this trend. The company launched new value-tier plans in March, including the bundled wireless and fiber subscription called OneConnect. It followed up in May with the customizable Build-A-Plan, which starts at $15 per month.
Whether these initiatives will offset the recent fee hikes is another question. Cheaper entry-level plans may attract customers, but the administrative fees could push them back out.
Sources: AT&T Fee Schedule, AT&T Q1 Earnings, OneConnect, The Street