TRAC reports that AT&T will be raising the cost of their "Carrier Cost Recovery Fee", adding monthly recurring charges for some long distance plans and adding a monthly minimum usage charge for others. The cost of custom calling features will rise in some states as well.

AT&T Raising Fees Again July 1 - The beginning of July will bring a large number of rate and fee increases for AT&T local and long distance phone subscribers. A full run-down of the increased prices follows:

  • Carrier Cost Recovery Fee - The fee is increasing from $1.99 to $2.39 per month for consumers NOT subscribed to AT&T local phone service. Subscribers of AT&T local AND long distance service will see their fee increase from $1.49 to $1.99 per month. Note that the AT&T local service subscribers who subscribe to the AT&T One Rate Nationwide 10 Cents, AT&T Nationwide Calling 120, AT&T Unlimited Plus or AT&T One Rate USA long distance plans will see their fee remain at 99 cents. What is a "Carrier Cost Recovery Fee," you ask? We have no idea, really. Here is what AT&T says it is: "This fee helps AT&T recover costs associated with providing state-to-state and international long distance service including expenses for national regulatory fees and programs and, connection and account servicing charges." Silly TRAC, we thought that was what the charges for the service and calls were supposed to cover.
  • AT&T 10 Cents Saturday and AT&T 10 Cents Sunday Basic Plan - A new $1.99 monthly recurring charge will be assessed.
  • Monthly Minimum Usage Charge - The monthly minimum usage charge on the AT&T 5 Cents eWeekends, AT&T One Rate Basic Plan, AT&T One Rate On-Line, AT&T Simplified Plan, AT&T One Rate 12 cents, AT&T One Rate Off-Peak - California plans will increase from $9.00 to $9.99 per month.
  • Custom Calling Features - The cost for a number of custom calling features, including Caller ID, call waiting, inside wiring maintenance, and voice mail will be increasing in Alabama, Mississippi and North Carolina as well as in seven out-of-region states (Iowa, Montana, New Hampshire, Oregon, South Dakota, Vermont, Washington). To see a full list of the new prices please visit

All of the rate increases listed above will take effect with bills issued on or after July 1, 2007. AT&T's recent rate increases have disproportionately affected long distance subscribers outside of the old SBC's 11-state local service area. Consumers affected by these and previous rate increases may do well to reevaluate their long distance service and at least compare it with other offerings to see if they can save money on their service.

Source: Telecommunications Research and Action Center (TRAC)