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AT&T hikes prices for some plans, but raises data caps

ASSOCIATED PRESS

AT&T announced Wednesday, Aug. 17, 2016, that the company is joining Verizon in raising the prices of some of its data plans in what the wireless company terms a simplification.

NEW YORK >> AT&T is joining Verizon in raising the prices of some of its data plans.

As with Verizon, AT&T is going to great lengths to avoid calling the changes a price hike, as the higher prices come with more data, reducing the cost per gigabyte for many customers. Indeed many customers will benefit, and those who won’t can keep their existing plans.

The price increase underscores how wireless companies see data as a way to boost revenue. Most plans now come with unlimited calls and texts.

The new rates take effect Sunday. AT&T customers who want to keep their existing plans don’t need to do anything. They can still add lines to their account, but won’t be able to change data levels without switching to the new rates.

AT&T’s efforts to simplify its plans include standardizing the “access charge” that customers pay on top of data charges. That’s the voice and text portion of the monthly service bill. Now, customers will pay $20 a month per line, unless they still have a discounted phone under two-year contracts, which wireless companies are phasing out. Before, the access charge was $25 for smaller data plans and $15 for larger ones.

Customers on larger data plans will now pay more for access, but will get comparable or greater reductions in the data rates. In fact, families on plans of 20 gigabytes or more will likely see signification reductions in their phone bills.

That’s not the case with smaller plans, as phone companies try to push customers into larger tiers to boost revenue. Those on smaller data plans will generally pay $10 a month more for data, offset by a $5-per-line reduction in the access charge. That’s a net increase of $5 for individuals, though those prices come with at least 20 percent more data.

But there’s one case where customers get less. For $30, customers used to get 2 gigabytes of data. Now, that price comes with 1 gigabyte. Those customers will still benefit from the $5-per-line reduction.

Regardless of the data level, Dallas-based AT&T Inc. is eliminating charges for exceeding monthly data caps, at least for those who do switch to the new rates. The charge was typically $15 per gigabyte over. Now, AT&T will slow down speeds instead after the cap is reached. The slower speeds will be fine for email and basic status updates on Facebook, but photos will be difficult and streaming video nearly impossible.

Verizon also eliminated charges for exceeding caps when it raised prices last month, though for those on smaller data plans, customers have to pay a $5 a month “safety” fee to avoid such charges. There’s no extra fee with AT&T. Sprint and T-Mobile also slow down speeds instead of charging for exceeding caps, without imposing any safety fee.

Last year, T-Mobile raised its rates as well, while calling them greater values with more data.

7 responses to “AT&T hikes prices for some plans, but raises data caps”

  1. rytsuru says:

    What is the point of this? For the last few months, AT&T has been charging my multi-line plan for “data overages”…this on an account that is over 12 years old, PROVEN by AT&T and the business plan sales rep not to exceed “x” amount of data per month. How do you actually prove how much data you are using? Are we 100% sure the data usage isn’t manipulated on some level? Further, why are data plans being capped? Why are connections strangled when you go over the vendors invisible lines in the sand? In short…as a customer you paid to have internet access with your smartphone, all of these vendors offered deals on getting you hooked to their plans…now that they have you hooked they yank the rug out from under you and no one seems to care that these stipulations are one sided.

  2. peanutgallery says:

    If you are, or have been an AT&T customer, you know they bent you over, and over, and over. So glad to not be giving them any more $$. Cell phone costs are dropping like hot rocks. If you are still with AT&T or Verizon, shop around. There are much better and cheaper ways to go.

  3. krusha says:

    With ATT, you also need at least the 5GB plan if you want to use the wireless hotspot feature on your phone, but it doesn’t take much to use up that 5GB of data when you’re sharing with multiple devices.

  4. Cellodad says:

    “signification reductions?” Dear AP, spell-check is not the same as editing.

  5. Shotzy says:

    And whats up with 4G LTE that can’t stream hd video w/o buffering on a consistent basis. Maybe they should invest in better saturation coverage. Sometimes speeds are so slow, it takes forever for printed articles to load, much less HD Video. No justification in raising prices,it should be the opposite.

  6. wrightj says:

    Had to get a new “free” phone because of this; I’m waiting for my first “new” bill.

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