DirecTV Regional Sports Fees: AT&T Admits To Wrong Prices, Will Issue Credits To Customers
Following reports indicating DirecTV was charging customers different prices for regional fees despite providing them with the same service, parent company AT&T has acknowledged the mistaken pricing and will issue credits to those who were charged excess amounts, according to a report from the Consumerist.
AT&T CEO Randall Stephenson was reportedly contacted by a customers who raised the pricing issue and was told that she would be refunded for the price difference she paid. AT&T said it would also review other cases to provide customers with credit.
Read: Comcast Increases Broadcast TV And Regional Sports Fees In 2017
"We have identified a small percentage of customers who are receiving some inaccurate bills for regional sports network fees," an AT&T spokesperson said. "We are working as quickly as possible to notify those customers and issue credits. We apologize for the error.”
The mistake in pricing stems from the regional sports fee, which the satellite TV provider tacks on to the standard monthly bill. The additional fee has been applied by DirecTV since 2012 to cover the cost of carrying regional sports networks and broadcasts in different markets.
A look at DirecTV’s fees, conducted using the company’s online pricing tool, found that regions provided the exact same sports broadcasts were charged different prices for the services. In some cases, customers were paying as much as $87.48 per year more than their counterparts despite getting the same broadcasts.
In Arizona, DirecTV charged its subscribers fees of $0, $2.47, $5.83 and $7.29 depending on the zip code in which they lived. Despite the different costs across different areas of the state, all of those regions receive the same network same network and broadcasts.
Other regions saw similar effects. Zip codes in the Minneapolis saw one region with no fee still receiving regional sports broadcasts despite neighboring areas paying as much as $5.83 per month. In Philadelphia, many zip codes carried no regional sports fee because DirecTV doesn’t carry the city’s primary sports network but some zip codes were still charged $4.53 or $5.83 per month for no apparent reason.
Regional sports fees and other additional surcharges applied by cable and satellite companies have come under fire in recent years. Comcast was recently hit with a class-action lawsuit accusing the company of falsely advertising low prices and not disclosing additional charges applied each month from sports and broadcast TV fees. A similar charge has also been levied against Charter.
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