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AT&T’s Creeping Costs

Telecom carriers raise rates to make more money.

But how can they do that in a tough market in which they face competitive pressure to reduce rates? They imitate the airlines.

This means keeping the nominal price down but getting more revenue through surcharges and miscellaneous fees. Basic airfares have declined but there are now add-on costs for checked baggage and premium seating.

AT&T is doing the same thing – coming up with new ways to increase revenue by increasing the cost of its access-related add-ons.


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