AT&T explains its new 61 cent/month administrative fee policy

Seth Weintraub

administrative-fee.
Thanks reader Kory for screenshot

AT&T started this month charging an administrative fee of $.61/month/user for its mobile customers in addition to its current fees. While the fee may be small, as the Verge notes it adds ‘up to hundreds of millions of dollars’ over 24 month contracts and millions of customers. What gives?  An AT&T spokesperson told us:

Consistent with similar fees charged by other carriers, the monthly fee of 61 cents per line will help cover certain expenses, such as interconnection and cell site rents and maintenance

The fee applies to consumer mobility lines as well as IRU lines –  the kind of business lines where the employee pays the bill directly.

AT&T isn’t alone in this endeavor. Verizon charges admin fees of $0.91 and Sprint charges $1.99.  (Plus more for regulatory fees.)  T-Mobile’s combined regulatory programs fee is $1.61.  On this basis, AT&T’s is still the lowest of all carriers.  It still sucks though. “expenses, such as interconnection and cell site rents and maintenance” seems like it should be part of the current fees and that fee is easier to raise because it isn’t part of the publicized rate plan.

Update: TheTechBlock notes that you may be able to cancel your plan because of this fee. A nice way to slip out of your subsidized plan? Read more

Report: iPhone captured 51.2-percent of US smartphone market last quarter, Android switchers up 10 percent

Jordan Kahn

Kantar-Worldpanel-Comtech-iOS-2013Apple was able to maintain its lead of smartphone sales in the U.S. market during the holiday quarter ending Dec. 23, according to new data released by Kantar Worldpanel ComTech. The report said iOS was the top-selling smartphone platform during the three-month period, as it recorded 51.2-percent of market sales compared to Android’s 44.2-percent.

While Android’s share of the market remained steady, down from just 44.2-percent last year, Kantar noted an increasing number of iPhone sales to other smartphone users. Sales of iPhones to Android users apparently grew 10 percent compared to 2011:

“In particular, 36% of iOS sales were derived from other smartphone users over the last year. While this figure remains stable over time, the proportion of Android users moving towards the Apple brand increases. 19% of iOS sales over the last year were derived from Android users, compared to 9% in 2011,”

Among the switchers, the majority came from Verizon. About 49 percent of new iPhone sales came specifically from users of another smartphone platform, while 30 percent came from Android users. AT&T, however, only had about 6 percent Android switchers, as the majority of new iPhone purchases—55 percent—were derived from iPhone upgrades: Read more

Sprint buys $480M in spectrum/customers from US Cellular, FCC fines AT&T $700K for overbilling

Jordan Kahn

A couple carriers are making headlines today for different reasons. Sprint, which could soon be scooped up by Softbank, announced today (via Engadget) it is spending $480 million to acquire PCS spectrum and 585,000 customers from U.S. cellular across the Midwest. As always, the deal is subject to approval from government officials in the U.S. Department of Justice and Federal Communications Commission, but Sprint could take over the spectrum and customers in “parts of Illinois, Indiana, Michigan, Missouri and Ohio including the Chicago and St. Louis markets” by sometime next year:

Under the terms of the agreement, Sprint will acquire 20 MHz of PCS spectrum in the 1900 MHz band in various Midwest markets including Chicago, South Bend, Ind. and Champaign, Ill. and 10 MHz of PCS spectrum in the St. Louis market.

AT&T is also making the news today with the FCC announcing the carrier will pay a $700,000 fine to put an end to the agency’s investigation into how the carrier handled its transition to mandatory monthly data plans (via BGR). The investigation followed complaints from consumers that AT&T had switched them from grandfathered pay-as-you-go plans to its new monthly plans as far back as 2009. According to the FCC, as part of the settlement, AT&T “has agreed to refund excess charges paid by individual customers, which could be as much as $25 to $30 a month, depending on data use”: Read more

Verizon iPhone 5 update eliminates carrier data usage while connected to a Wifi Network

Seth Weintraub

An update is going to Verizon iPhone 5 owners this evening that resolves an issue where, under certain circumstances, the iPhone 5 may use Verizon cellular data while connected to a Wi-Fi network. We are not sure how much data leaks, or why and if Verizon will offer a refund, but we reached out to the carrier for a statement.

Update: Torod Neptune, spokesperson for Verizon Wireless, provided the following statement:

“Under certain circumstances, iPhone 5 may use Verizon cellular data while the phone is connected to a Wi-Fi network. Apple has a fix that is being delivered to Verizon customers right on their iPhone 5. Verizon Wireless customers will not be charged for any unwarranted cellular data usage.”

Instructions to install the update.

  1. Tap Settings > General > About.
  2. Wait for the following alert to appear:
  3. Tap OK to install the update.
  4. Hold the Sleep/Wake button down until you see “slide to power off”.
  5. Slide to power off.
  6. After the device powers off, hold the Sleep/Wake button to turn your phone back on.

Note: To finish the installation of the update, your iPhone 5 must be turned off and then turned on again.

After your iPhone restarts, tap Settings > General > About, and then scroll down to Carrier and verify “Verizon 13.1″ is displayed.

The issue may be a carryover from the Wi-Fi+Cellular feature that was in the betas of iOS 6 but was eliminated in the final version. One reader below mentions the data leak seems to have occurred while the device is asleep.

Read more

AT&T now out of opening day iPhone 5 stock, orders now pushed back to ’14-21 business days’

Seth Weintraub

AT&T just ran out of Sept. 21 stock for the iPhone 5. The delivery page has now pushed sales to “14-21 business days,” which equals almost three to five weeks. Verizon ran out of stock earlier today, but it is hard to determine if this shows demand per carrier since AT&T is such a big legacy iPhone carrier and Apple obviously gave it a lot more stock than others.

Both big carriers have downsides: AT&T will not run FaceTime unless you buy a Mobile Share plan, while Verizon will run FaceTime on all of its iPhones—but new customers must sign up for a Mobile Share plan (no matter what). In addition, the CDMA version of the iPhone, which Verizon and Sprint both carry, will not support simultaneous talk and data. Speaking of Sprint, it is still advertising ship dates of Sept. 21.

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Which iPhone carrier has the fastest network in your area? AT&T, Verizon, & Sprint get accurate comparison by city

Jordan Kahn

The argument over which carrier has the fastest network speed in any given location in the United States is still up for debate. Putting network speed comparisons aside, which are often not an accurate representation of speeds, you will receive in your specific area, a new app from startup SwayMarkets aims to provide a more realistic comparison.

The app, CarrierCompare, allows users to test the network speed of their current carrier against the two other major iPhone providers. CNNMoney went hands-on when the app released last month and just posted the user data it obtained that compares major iPhone carriers in multiple locations.

Analyzing user-generated data from Boston, New York, Washington, Chicago, San Francisco, and Los Angeles, these were the results:

Read more