Signed a 1-year contract and then AT&T raised price

I was going to cancel my service in December last year, but when I called to cancel, AT&T offered U200 for a certain rate for 12 months in exchange for me signing a contract for one-year.  So I agreed to keep AT&T U-Verse for 1 year and pay that set price. Subsequent to our agreement, AT&T raised the bill by ~$4 in February (yes, the notification was in the December bill but that bill was generated after I entered into the one-year contract). I had an online chat with customer care and I was told that it is AT&T's policy to apply the rate increase even to customers who are under a contract.  I sent a private message this past weekend but I have yet to hear back. It is absurd that AT&T thinks this is okay: 1) If I cancel the service before December this year, I have to pay a penalty.2) Yet AT&T can raise the rate at any time without my consent.3) If I don't like the rate increase, I can cancel the service but I still have to pay the penalty. Is anyone else having this same issue (i.e., those who have to pay a penalty if they were to cancel within the contract period, similar to how cell phone contracts work)?  Please share your experience here.  Thanks.

http://www.att.com/u-verse/explore/offer-details.jsp
Promotional pricing applies to service rates only and excludes taxes, equipment fees, and other charges including a $49 service activation fee, city video cost recovery fees, where applicable, and a Broadcast TV surcharge. Residential customers only. Credit restrictions may apply. Pricing, programming, and features subject to change at any time without notice.
Recent increases...
IP TV packages increased $3, your discount for promotion should also increase $3 to cover this till promotion expires
HSIA internet fees increased $5, your discount should increase by same to cover your promotiontill expiration.
Fees increases.... NOT part of promotion
RG lease fee increase $1 from $6 to $7
Receiver fee beyond included DVR increase $1 per receiver. $7 to $8
Broadcast fee (local TV access) increased $1 from $1.99 to $2.99
These increases were announced in both November, December billing as well as website.
If you have services you agreed to terms of services, when registered internet checked two boxes stating have read, understand and agree to the terms of service. http://www.att.com/u-verse/att-terms-of-service.jsp
If you have not done so, now may be a good time....
PLEASE READ THIS AGREEMENT CAREFULLY TO ENSURE THAT YOU UNDERSTAND EACH PROVISION....
You must accept these TOS as a condition of receiving the Services"
In part...
"Agreement to Pay. You agree to pay all fees and charges for the Services associated with your AT&T Account, including recurring and nonrecurring charges, taxes, fees, surcharges, and assessments applicable to the Services, associated equipment, installation and maintenance, and including all usage and other charges associated with your account. In order to provide you with the Services, AT&T may pay taxes, fees, and surcharges to municipalities and other governmental entities, which AT&T may pass on to you."
And...
" Changes to Fees and Charges. If you signed up for Services for a specified term, you agree that if you cancel your plan before the end of the term, you will pay any applicable early termination fee. At the conclusion of your term, AT&T will automatically begin charging the applicable month-to-month fee. If you purchased the Services as part of a bundled offering with one or more other products and are receiving a discount based upon that bundled offering, your discount may cease and you may be billed the standard monthly rate for the Services if you change or disconnect one or more of the services in the applicable bundle. AT&T may, upon notice required by applicable laws, at any time change the amount of or basis for determining any fee or charge or institute new fees or charges."
And...
" By enrolling in, activating,using, or paying for the services, you agree to the terms and conditions in these TOS, including but not limited to the prices, charges,and terms and conditions provided to you in marketing and informational materials associated with the Services and on the AT&T U-verse website, all of which are incorporated herein by reference. If you do not agree to all of the aforementioned terms and conditions, do not use the Services,and cancel the services immediately by calling AT&T at 1-800-288-2020."

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