Why Is AT&T So Expensive? (9 Reasons Why)

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Yasmin Fisher

Yasmin Fisher is a fashion-loving shopaholic who has spent the last 10 years in customer service. She loves finding great deals, and thrifting is one of her favorite weekend activities.

AT&T is a popular telecommunications service that offers voice, broadband internet, and television service. Their service is available in many parts of the world.

AT&T offers many advantages, including its extensive network and reliability. However, AT&T is expensive compared to other services. This article gives 9 reasons why AT&T is so expensive.

Why Is AT&T So Expensive?

1. Data Usage

AT&T is one of the most popular mobile phone networks in the world. They offer a wide range of plans, and their customer service is legendary.

One of the benefits of using AT&T is its data usage limits. These limits are designed to help you control how much data you use each month but exceeding data limits is costly.

If you exceed your data limit, AT&T will automatically reduce your internet speed. Customers have to pay for more data to get faster speed, which gets expensive.

AT&T has increased some of its data plans. The updates are meant to increase data allowances,  but it also comes with an extra $10 charge.

2. Annual Price Increases

AT&T has increased its prices for the second year in a row. As a result, the largest provider of telephone services in the United States has expanded its prices, making it much more expensive. 

AT&T charges customers an annual fee for its services. The increases took effect on January 1, 2018. One reason for the increase is the service cost to rural areas. 

AT&T has been investing in new technology and expanding its network to meet customers’ needs in rural areas. However, this investment has also increased costs.

Its annual fee is lower than those of some other providers, and it offers a variety of features that other providers do not provide.

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3. Largest Coverage Area

AT&T has the largest coverage area of any cell phone carrier in the United States, contributing to the cost of their service.

They have the most expansive coverage area of any cell phone carrier. AT&T offers service in over 800 cities and towns across the country.

AT&T has a wide range of network coverage across the United States. This means you’re likely to find a network signal in most parts of the country.

AT&T has to charge customers more than other networks and phone providers to maintain this coverage area.

4. High-Quality Service

AT&T is one of the most expensive mobile phone networks because they offer high-quality service. With both prepaid plans and monthly bills, AT&T’s service is top-notch.

Customers get the best possible experience. AT&T provides fast, reliable, and convenient service that is always available when you need it.

AT&T has the best customer service of any cell phone carrier. Their agents are available 24/7 to help you with your questions or problems.

AT&T also offers a variety of convenient payment options, including credit cards, debit cards, and PayPal. Customers can use whatever payment method is most comfortable for them.

5. Activation Fees

Activation Fees

One reason for AT&T being so expensive is the activation fees charged to its customers. Activation fees are charges imposed when a customer first activates their account with AT&T. 

These fees can range from $5 to $30 per line, and they can be quite a burden for customers with many wireless devices. 

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Customers forget that they have to pay activation fees. When they get a new device, the fee comes as a surprise to many customers.

Activation fees and high rates discourage customers from using AT&T services, which ultimately hurts AT&T’s business.

 If AT&T could reduce or eliminate activation fees and other fees, it would likely attract more customers looking for affordable phone service.

6. High-Cost Plans

An AT&T plans are more expensive than other carriers or networks. Their high-cost plans can include coverage for accidents, property damage, and theft.

AT&T offers various services and plans that make them much more expensive than other internet and phone providers.

Depending on what kind of plan, some are more expensive than others. Customers should evaluate their needs to pick the right plan.

AT&T also offers installment plans on some devices. However, this can make their service seem way more expensive when making monthly payments towards financing a device like a cell phone or iPad.

7. Bundled Services

One of the reasons AT&T is expensive is because of its bundled service for broadband. This service includes cable and satellite internet, which can be costly.

AT&T also offers home, cell phones, wifi, and TV bundled services. Unfortunately, these bundles can lead to expensive bills.

AT&T also has a bundle for home security. This bundle includes security cameras and home security systems, ensuring your home is safe from any intruder.

Being connected to AT&T’s services can be very expensive, but many customers value paying more for good service.

8. Additional Taxes and Fees

AT&T fees can add up and make them much more expensive than other phone carriers or internet providers.

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There can be taxes specific to a certain state or province or fees associated with the financing or leasing of equipment. AT&T has high fees making it very expensive.

Fees can change yearly, so keeping up with your phone bill is important to know how much you pay in fees each month.

9. Reliable Signal

AT&T is an excellent phone service that offers reliable service in many areas. They have a strong signal in most parts of the country. 

AT&T has towers that produce their strong cell signal. However, the maintenance and upkeep of cell towers are costly to a company, so they pass the cost on to the customer.

AT&T keeps its network online and maintains strong cell signals from its towers, making them a more expensive service.

To learn more, you can also read our posts on why State Farm is so expensive, why H&R Block charges so much, and why Southwest is so expensive.


AT&T provides customers an easy way to connect through their cell, internet, and phone service. In addition, they offer customers a wide range of services with a hefty price tag. 

AT&T is much more expensive than many phone companies and internet providers. This article outlined the reasons why AT&T is so expensive.


  • Yasmin Fisher

    Yasmin Fisher is a fashion-loving shopaholic who has spent the last 10 years in customer service. She loves finding great deals, and thrifting is one of her favorite weekend activities.

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