AT&T Inc. (NYSE:T) is reportedly considering a plan to increase the activation fees. That is applicable for new phone contracts, as well as, upgrades. Aside from that, the company is also planning to introduce a fresh activation fee for some no-contract customers. The new tariff might come into effect from next month.

Highest Activation Fee

Accordingly, the new activation fee of AT&T Inc. (NYSE:T) will increase to $45 from $40 for new activation or upgrade fee for both one, as well as, two-year agreements, according to Droid Life report. The revised fee will suggest that it would be the highest activation fee charged by any operator in the industry. Verizon Communications Inc. (NYSE:VZ) is charging only $40 currently.

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In addition, a fresh activation fee of $15 will become applicable for AT&T Next. That was for customers who pay for their phones through the monthly installments. The charges will be applicable to a customer who brings his or her own devices. Also, the scheme will not be a zero-out-of-pocket installment scheme. Now, the customers could avoid an activation fee upon buying of the phone directly from the company and pay the full price upfront for the device. That will prevent AT&T Inc. (NYSE:T) customers from contracts, as well as, installment plans.

Slight Different

The plan will be slightly different from bring in your own device scenario that was outlined. However, there are still doubts about the activation fee in the future. Droid Life is said to be having a credible source as far as plan changes of telecom carrier is concerned. For instance, Verizon Communications Inc. (NYSE:VZ)’s wireless Edge financial plan was correctly reported by it. That was in respect of making customers pay off an increased percentage of expenses of a phone before upgrading to a fresh device.

AT&T Inc. (NYSE:T) spokesperson has neither confirmed nor denied the reports of an increase in fee. There is also every chance for other telecom service providers to follow suit.

AT&T Inc. (AT&T), incorporated on October 5, 1983, is a holding company. The Company provides telecommunications services in the United States and worldwide. The Company offers its services and products to consumers in the United Services and services and products to businesses and other providers of telecommunications services worldwide. The services and products that the Company offers include wireless communications, data/broadband and Internet services, video services, local exchange services, long-distance services, telecommunications equipment, managed networking and wholesale services. The Company operates through two segments: Wireless and Wireline. The Company’s wireless subsidiaries provide both wireless voice and data communications services across the United States and, through roaming agreements, in a range of foreign countries. The wireline subsidiaries provide primarily landline data and voice communication services, AT&T U-verse high speed broadband, video, and voice services (U-verse) and managed networking to business customers.

The Company’s wireline subsidiaries operate as the incumbent local exchange carrier (ILEC) in 21 states, including Alabama, Arkansas, California, Illinois, Indiana, Florida, Georgia, Kentucky, Louisiana, Kansas, Michigan, Mississippi, Missouri, Nevada, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas and Wisconsin. The Company focuses on providing broadband, video and voice services over both its wireless and wireline platforms.

Wireless

Wireless consists of its subsidiary, AT&T Mobility, which operates as a wireless provider to both business and consumer subscribers. As of December 31, 2014, the Company served more than 120 million wireless subscribers. The Company classifies its subscribers as either postpaid, prepaid, connected device or reseller. The Company offers a range of wireless voice and data communications services in various pricing plans, including postpaid and prepaid service plans. Its offers services for the communications needs of various customer categories, including youth, family, professionals, small businesses, government and business. The Company offers Mobile Share plans, which allow sharing of voice, text and data across various devices; AT&T Next (AT&T Next), a program allowing subscribers to upgrade handsets using an installment payment plan and Rollover Data on Mobile Share Value plans, which allows unused shareable plan data to be rolled over and used within the next month. The Company’s postpaid wireless service is provided under two alternatives: for subscribers who purchase their equipment under the traditional device subsidy model and for subscribers purchasing a device on installments under the AT&T Next program. Its prepaid service is provided to certain customers who prefer to pay in advance. Its wireless services include data and voice services, including long-distance service and roaming services.

AT&T sells various handsets, wirelessly enabled computers (tablets and notebooks) and personal computer wireless data cards manufactured by various suppliers for use with its voice and data services. The Company sells through its own Company-owned stores, agents or third-party retail stores. It also sells accessories, such as carrying cases, hands-free devices, batteries and battery chargers, to consumers, as well as to agents and third-party distributors for resale.

Wireline

The Company through its Wireline subsidiaries provides both retail and wholesale communication services domestically and internationally. Its wireline services are divided into two product-based categories: service and equipment. The Company offers voice and data services, including broadband and video. It provides data services that rely on Internet protocol (IP) based technology and data services that rely on older, circuit-based technology. It provides businesses voice applications over IP-based networks, such as Enhanced Virtual Private Networks (EVPN). Its IP-based services include Internet access and network integration, dedicated Internet and enterprise networking services, U-verse services and related data equipment sales.

AT&T’s circuit-based, data products include switched and dedicated transport services that allow business customers to transmit data at high speeds, as well as digital subscriber line (DSL) Internet access. Its offerings use high-capacity digital circuits and enable customers to create internal data networks and to access external data networks. Its Switched Transport services transmit data using switching equipment to transfer the data between multiple lines before reaching its destination. Its Dedicated Transport services use a single direct line to transmit data between destinations. Its network integration services include installation of business data systems, local area networking and other data networking offerings. Its Internet access services include a range of products for residences and businesses, including access service, dedicated access, Web hosting, managed services, e-mail and high-speed access services. Its managed Web-hosting services for businesses provide network, server and security infrastructure, as well as built-in data storage and include application performance management, database management, hardware and operating system management. Its hosting services also provide customers with secure access to detailed reporting information about their infrastructure and applications.

AT&T’s Packet services consist of data networks using packet switching and transmission technologies, including traditional circuit-based and IP connectivity services. Its Packet services enable customers to transmit large volumes of data and are used for local area network (LAN) interconnection, remote site, point of sale and branch office communications. The Company’s Enterprise networking services provide support from network design, implementation and installation to ongoing network operations and management for networks of varying scales, including LANs, wide area networks and virtual private networks. These services include applications, such as e-mail, order entry systems, employee directories, human resource transactions and other database applications. It also offers WiFi service. It also provides intrastate, interstate and international wholesale networking capacity to various service providers. AT&T offers a combination of high-volume transmission capacity and line services on a regional, national and international basis to its wholesale customers, which are principally wireless carriers, interexchange carriers, Internet service providers (ISPs) and facility-based and switchless resellers.

AT&T’s Voice services include local and long-distance service provided to retail customers and wholesale access to its network and individual network elements. As on December 31, 2014, its wireline subsidiaries served approximately nine million retail consumer access lines, nine million retail business access lines and two million wholesale access lines. It also offers various integrated voice and data services, such as integrated network connections, which provide customers the ability to integrate access for their voice and data services, including Voice over IP (VoIP). Its Long distance consists of traditional long distance and international long distance for customers that select AT&T as their primary long-distance carrier. The Company also provides wholesale switched access service to various service providers.

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