AT&T price hikes are coming soon
“If you have your cellphone service with AT&T, beware and be wary,” warns money expert Clark Howard.
If you have a standard AT&T cellphone plan, then be prepared for a higher monthly payment. For most people, the price increase will start in June. While not every AT&T customer is going to see the new higher rates, many will.
“In an unprecedented move, AT&T is busting the rate plans of people who have been with AT&T for a long time and pushing through increases from somewhat marginal to around 15% in your monthly cellphone bill.”
The price increase seems to be geared toward longtime AT&T customers who have been grandfathered into old plans. The higher prices will not only bring in more revenue for AT&T but also may encourage customers to upgrade to one of AT&T’s newer unlimited plans. These plans start at $50 per month for one line.
What’s unprecedented about the price hike is that historically, cellphone carriers leave you alone once you’re on a rate plan. Whatever you signed up for, you keep that price moving forward. But Clark says that there’s nothing in AT&T’s terms of service that prevents the company from breaking that tradition. So now, AT&T is pushing through these increases that range from modest to very large.
Unfortunately, it’s hard to predict how many customers will be affected by the price increase or to know if you’ll be one of them. However, if you have an older AT&T plan, you’ll likely see a higher cellphone bill beginning over the next few weeks.
While you may not be able to prevent the price increase on your current plan, you can always consider a more affordable phone plan. In fact, Clark says this is a great time to make the switch.
“This is a time you should re-shop your cellphone service before the AT&T price increases go in. You don’t want to be someone who just says, ‘OK, come take more money from me.’ No! You may find out that there are much better, cheaper plans available elsewhere or even from AT&T. This is the time that you shop as a free agent.”