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Industry Alert: AT&T Announces Rate Increase!!!!

Apr 11 2011

ATT Logo WCS closely monitors every telecommunications carrier in the United States for Service Guide updates and rate adjustments (See link below for full copy). Recently, AT&T has implemented a flurry of rate hikes and sharp increases in core services and surcharges that will have significant customer cost impact on AT&T products for nearly ALL Retail and Wholesale customers. Customers who are under contract will also be affected. These hikes target high-volume, popular services like; Long Distance services, Ethernet and universally-applied surcharges which impact every element of an AT&T customer invoice.  

In all fairness, it is critical that the public is aware of these changes and are prepared for the upcoming impact. Historically, AT&T has made these adjustments about 2-3 times per year, but more recently it appears as if they are “dripping” these adjustments selectively. We have noticed that AT&T has been shifting between product monthly recurring charges and surcharges to cover the spectrum of client billing elements. WCS is currently evaluating its competitive response to these increases and we encourage you to contact a WCS sales representative for more details.

Here is a summary of the rate increases:

1.       AT&T Carrier Line Assessment Increase 

(CLA in AT&T terms stands for a PICC fee. The cost is lower on lines that is provided by AT&T. Below is the fee for a straight LD pic on a non-AT&T provided Business Phone Lines or Primary Rate ISDN lines)

Effective April 1, 2011, on all bills issued on or after this date, the Carrier Line Assessment will be increased to $4.95 per outbound switched single-line and multi-line.   The Carrier Line Assessment applies to various services, including All in One, Commercial Long Distance, Clear Advantage, Custom Net, Custom Net Option I - VI, Distributed Network Services, GICS, Oahu Telephone Service, Option S/Model T, ProWats Plan Q, Small Business Option, Simply Better, Simply Better Flex, and all ACC Business Services.

2.       AT&T US Domestic Access Channels Increase 

   

Effective on or after April 20, 2011, AT&T rates will change for select speeds US Domestic Access Channels.

US Domestic Access Channels

T3 & Ethernet Access Channel rates on Schedule A will increase an average of 15%.

T3 & Ethernet Access Channel rates on Schedule B will increase an average of 10%.   (since this affects base tariffed rates and the discount is 30% on avg, the increase is really more like 13%.....)

3.       PROPERTY TAX ALLOTMENT

Beginning with bills dated on or after May 1, 2011, the Property Tax Allotment rate will increase from 2.72% to 3.53%.  The AT&T Business Services Guide will be revised to reflect this revision.

*Click Here for the Full Copy of the AT&T Business Service Guide Price Change Information