at&t : The Magic Revenue Model of Hidden Fees



An actual "at&t" (SBC) bill from July 2008.

 


The Magic Revenue Model of Hidden Fees
~~~~~~~~~~~~~~~~
An actual 'at&t' (SBC) bill from July 2008.
-----
Summary:
Plan (Long Distance):
Advertised as
' $2.00 a month,
+ 10 a minute
-----
at&t math:
$2.00 + $0.90 = $4.81
-----
This is a markup of 166% !
-----
Now, hidden fees of $22.92 per year
may not seem like a big deal
to you, but multiply that
by, say, 67.5 million customers*,
and you have hidden fees
of $1,547,100,000 
(1.5 BILLION dollars)
a year (actually more,
since most people have
more expensive plans).

That's a tidy profit!

And that's just for Long Distance!
----
(Don't be fooled into thinking
all that money is going to
Federal and State governments.
Even the money that is going
as taxes is a profit for at&t, 
because taxes are THE COST 
OF DOING BUSINESS. ... Do 
you get to increase your paycheck
with a 'Tax Fund' or a 'Commuting 
Cost Recovery Fee'?)

*Estimated customer base in 2007; 
does not include wireless customers.

 

 

 

 

Summary:
Plan (Long Distance):
Advertised as
' $2.00 a month,
+ 10¢ a minute
-----
at&t math:
$2.00 + $0.90 = $4.81
-----
This is a markup of 166% !
-----
Now, hidden fees of $22.92 per year
may not seem like a big deal
to you, but multiply that
by, say, 67.5 million customers*,
and you have hidden fees
of $1,547,100,000
(1.5 BILLION dollars)
a year (actually more,
since most people have
more expensive plans).

That's a tidy profit!

And that's just for Long Distance!
----
(Don't be fooled into thinking
all that money is going to
Federal and State governments.
Even the money that is going
as taxes is a profit for at&t,
because taxes are THE COST
OF DOING BUSINESS. ... Do
you get to increase your paycheck
with a 'Tax Fund' or a 'Commuting
Cost Recovery Fee'?)

*Estimated customer base in 2007;
does not include wireless customers.