AT&T Activation Fee for Contract Customers Rising to $45, New $15 Fee for 'Next' Customers

[MacRumors]

Beginning August 1, AT&T will raise its activation/upgrade fee for customers signing up for a one- or two-year contract, alongside introducing a specific activation fee for all AT&T Next and Bring-Your-Own-Phone customers.

According to sources speaking with Droid Life, the new contract upgrade fee will increase from $40 to $45, while the activation cost for Next and BYOP customers will be $15. If true, AT&T will have the highest activation fee amongst its competitors. Other carriers, like Verizon, sit around a $40 upgrade fee cost currently.

With the uptick in price for the carrier's contract activation charges, AT&T is changing its installment plan option, AT&T Next, from a no-cost-to-start service to requiring a $15 activation fee. The same $15 charge will be placed for customers interested in activating a new line of service with the BYOP program, which lets customers save money on their yearly contracts by bringing in a phone purchased elsewhere to avoid paying full-price.

It appears that AT&T will grandfather in existing AT&T Next customers who have a plan with the company prior to August 1, and won't be charged the $15 fee on their next upgrade. However, the carrier noted that this policy is "subject to change," meaning existing Next customers may be facing the $15 charge sometime down the line of their upgrade cycle, if not immediately after the changes take effect.

Article Link: AT&T Activation Fee for Contract Customers Rising to $45, New $15 Fee for 'Next' Customers

 

[Chuck Kostalnick]

What a BS charge to begin with. Way to go AT&T! #*******s

 

[k1121j]

we all know what subject to change means AT&T cough UNLIMITED****

 

[levitynyc]

Activation fees and registration fees should be illegal.

What a joke.

It literally costs them nothing to "activate" a phone.

Give me a break.

 

[0815]

They are really trying hard to loose me as a customer and to prevent that any new customers sign up .... Guess I am for now grandfathered on the Next plan, but I am sure that won't last long. Guess I have to check out the coverage from T-Mobile in my frequent traveled areas.

For now AT&T is with my family plan and the big discount I get through my company the cheapest option (by a small margin per month, but that adds up) - but I am not willing to support this BS from AT&T for much longer, and price is soon no argument anymore.

 

[Lord Hamsa]

I was already planning on ditching AT&T for T-Mobile once band 12 iPhones are available (strongly rumored to be in the 6S/6+S phones due out this fall). This only adds to my motivation.

 

[SqB]

Good bye AT&T. You are heading in the wrong direction.

Maybe in a couple of years we'll be reading about the deal where T-Mobile is bidding to buy a beleaguered and failing AT&T.

 

[vmachiel]

When I read this from a European's perspective the first thought I had was how can this happen? Then I looked up average contract costs and I was even more confused. Aren't there four networks that compete? I have three were I live and dozens of MVNOs. Can someone explain to me why mobile is so expensive in the US even with competition? (not trying to be snarky or anything, I actually don't understand).

 

[k1121j]

Activation fees and registration fees should be illegal.

What a joke.

It literally costs them nothing to "activate" a phone.

Give me a break.

agreed ...at 45.00 per activation they can charge you 3.75 per month more and not have to show it on your monthly bill

 

[Siannath]

 

[GizmoDVD]

Been with AT&T since the iPhone launch and have to have a Microcell in my condo to even get decent reception.

Just waiting to switch....

 

[BeSweeet]

Well, they have to pay for all those fines somehow, as if they weren't already making enough...

 

[ArtOfWarfare]

When I read this from a European's perspective the first thought I had was how can this happen? Then I looked up average contract costs and I was even more confused. Aren't there four networks that compete? I have three were I live and dozens of MVNOs. Can someone explain to me why mobile is so expensive in the US even with competition? (not trying to be snarky or anything, I actually don't understand).

My understanding is that carriers here have to build a lot more towers per customer to cover everyone. Whenever you see a US coverage map that shows coverage in the middle of the continent, consider that there are a lot of towers out there in the middle of nowhere covering nobody.

Why?

They're trying to secure government contracts, which require a certain percentage of the country to be covered.

I suspect that part of the reason T-Mobile manages to be so much cheaper is because they're not trying to build useless towers in the middle of nowhere to secure a government contract - they're content with letting AT&T and Verizon compete for those while T-Mobile can more aggressively pursue businesses and individuals.

Also, Sprint is a joke. My understanding is that they aren't based out of the US, and they have little interest in competing in the US anymore. They're trying to sell what they do have to any of the other carriers, and they aren't interested in updating or maintaining what they do have.

So we really have only 3 real carriers, and 2 of them are more interested in government contracts.

Still, our cellular situation is much better than our broadband situation, where the providers each have regional monopolies and seem disinterested in competing with one another. As soon as there's an option to get the channels I want over the internet, I'm ditching Comcast and going cellular only.

 

[hlfway2anywhere]

I've been talking to T-Mobile looking to migrate my 9-line mobile share plan. Looks like they're making it even easier for me.

 

[0815]

Good bye AT&T. You are heading in the wrong direction.

Maybe in a couple of years we'll be reading about the deal where T-Mobile is bidding to buy a beleaguered and failing AT&T.

Would be awesome if T-Mobile would buy them in a few years - that would also give them a much better (and needed) coverage area. (coverage is the only thing that I might regret when switching to T-Mobile, but I will check the updated maps)

 

[goobot]

I'm honestly on the edge of switching to t-mobile. If when I upgrade in the fall and they don't wave this idiotic fee I will switch.

 

[TonyC28]

When I read this from a European's perspective the first thought I had was how can this happen? Then I looked up average contract costs and I was even more confused. Aren't there four networks that compete? I have three were I live and dozens of MVNOs. Can someone explain to me why mobile is so expensive in the US even with competition? (not trying to be snarky or anything, I actually don't understand).

They don't really compete here. More like collude.

 

[wlossw]

They should add a monthly bill payment acceptance fee... maybe 5$ to cover the costs of depositing your money...

 

[td1439]

Can someone explain to me why mobile is so expensive in the US even with competition?

Collusion. They are allowed to get away with it since they are major corporations.

 

[aawil]

So glad I switched to gophone. No fees, tethering and now data rollover.

 

[nepalisherpa]

When they advertised Next, they boasted about "no activation fee". Now that most users have switched, they are bringing it back.

 

[Statusnone88]

They should add a monthly bill payment acceptance fee... maybe 5$ to cover the costs of depositing your money...

They do. If you call customer care, and you don't use the automated system, it's a $5 fee.

 

[Statusnone88]

When they advertised Next, they boasted about "no activation fee". Now that most users have switched, they are bringing it back.

Glad someone caught this.

 

[DravenInc]

When I read this from a European's perspective the first thought I had was how can this happen? Then I looked up average contract costs and I was even more confused. Aren't there four networks that compete? I have three were I live and dozens of MVNOs. Can someone explain to me why mobile is so expensive in the US even with competition? (not trying to be snarky or anything, I actually don't understand).

Want to be even confused? Look up the costs for wireless in Canada.

 

[kazmac]

Gee thanks, AT&T. if anything will push me back to an iPad, it's higher $*()@ fees like this. I'm already paying $10 more than I was with the iP6.