AT&T Raises Smartphone Upgrade Pricing From $15 to $20 to Match Verizon's New Fee

[JDW]

I've owned Macs since 1984, and I have WiFi iPads and iPods galore, but I've never purchased an iPhone. Why? Because the cost of the phone itself is NOTHING relative to the monthly carrier fees. Slash those fees to the cost of a landline and every single person on the planet with a few dollars in the bank will buy one. The barrier isn't the phone cost, it's the long term carrier cost. Add up how much those carrier fees are in a 10 year period, then ask yourself what you can buy for that. No everyone can write off those fees as a business expense. Those fees are simply outrageous. To pay them is, in my opinion, just insane.

 

[morcutt11]

What impresses me is that AT&T wasn't the first to raise their prices.

 

[Nxtphase]

Starting last year, AT&T began charging a $15 activation fee for customers who wanted to upgrade to a new smartphone purchased outright or through an AT&T Next plan, and as of yesterday, that fee has been increased from $15 to $20.

As Droid Life noticed yesterday, AT&T updated its wireless activation and upgrade fees document to reflect the new $20 pricing on April 6, matching Verizon's recently implemented fee.

On Monday, Verizon started charging $20 for activating smartphones purchased through an installment plan or at full retail price, $5 less than AT&T was charging at the time. Less than two days later, AT&T raised its prices to $20.

AT&T customers who bring a phone to the AT&T network, purchase a phone using AT&T Next, or purchase a device through Apple's Device Upgrade program will need to pay the one-time activation fee as outlined below. Customers with a two-year contract will need to pay the standard $45 fee, which has not changed.As Ars Technica points out, AT&T doesn't provide any explanation or justification for the fee that it charges on its website, nor does it give an explanation for the price increase. In a leaked document we shared last week, Verizon said its own fee was to cover "increasing support costs associated with customers switching their devices."

Of the four major carriers in the United States, T-Mobile is the only carrier that does not charge an upgrade or activation fee. AT&T and Verizon both charge $20, while Sprint charges a fee of up to $36 per device.

Article Link: AT&T Raises Smartphone Upgrade Pricing From $15 to $20 to Match Verizon's New Fee

[doublepost=1460296092][/doublepost]

Starting last year, AT&T began charging a $15 activation fee for customers who wanted to upgrade to a new smartphone purchased outright or through an AT&T Next plan, and as of yesterday, that fee has been increased from $15 to $20.

As Droid Life noticed yesterday, AT&T updated its wireless activation and upgrade fees document to reflect the new $20 pricing on April 6, matching Verizon's recently implemented fee.

On Monday, Verizon started charging $20 for activating smartphones purchased through an installment plan or at full retail price, $5 less than AT&T was charging at the time. Less than two days later, AT&T raised its prices to $20.

AT&T customers who bring a phone to the AT&T network, purchase a phone using AT&T Next, or purchase a device through Apple's Device Upgrade program will need to pay the one-time activation fee as outlined below. Customers with a two-year contract will need to pay the standard $45 fee, which has not changed.As Ars Technica points out, AT&T doesn't provide any explanation or justification for the fee that it charges on its website, nor does it give an explanation for the price increase. In a leaked document we shared last week, Verizon said its own fee was to cover "increasing support costs associated with customers switching their devices."

Of the four major carriers in the United States, T-Mobile is the only carrier that does not charge an upgrade or activation fee. AT&T and Verizon both charge $20, while Sprint charges a fee of up to $36 per device.

Article Link: AT&T Raises Smartphone Upgrade Pricing From $15 to $20 to Match Verizon's New Fee

[doublepost=1460296270][/doublepost]Activation fees are junk fees,
I'm with T-MO and I refuse to pay
activation fees and any other
useless add ons!

 

[maxsix]

What this thread truly reveals is the acerbic spoiled brat mentality of a large number of Apple Devotees.

No wonder some people are disgusted by "Apple" users

 

[617aircav]

So why in the world would you pay full price at AT&T vs Sim Free at Apple???? Am i missing something??

Ignorance or Apple Store too far. Most consumers are too lazy to shop around and look up information on the web.

 

[ValiumEater]

"Any fee you can charge, I can charge better..."

 

[TheMountainLife]

For those saying Tmo coverage is poor, is this really a game breaker over the Wi-Fi calling feature?

Considering leaving VZW and was curious. I'd take poor coverage + wi-fi calling over greedy prices any day. I'm in Colorado btw.

 

[igorsky]

Ah... The hypocrisy of the Apple Faithful as modeled by the company they fawn over.

AT&T raises the price a mere $5 and the faithful spew hate.

Apple raises the price, the faithful swoon and sing “Take My Money“

Well, at least I didn't read this nonsense until page 2
[doublepost=1460387513][/doublepost]

As long as you feel good...

Do your Apple rants make you feel good? Nobody here gives two $hits whether or not you like Apple or the "Apple faithful".


Back on topic...has anyone every found anything in writing from AT&T where they explain why they charge an activation fee?

 

[jlc1978]

Back on topic...has anyone every found anything in writing from AT&T where they explain why they charge an activation fee?

I haven't but my guess it boils down to "because we can." It's a simple way to extract additional revenue from a customer so they do it until they lose too many customers. That isn't happening as evidenced by their raising the charge.

 

[ValiumEater]

Back on topic...has anyone every found anything in writing from AT&T where they explain why they charge an activation fee?

Money

 

[tjrMR1971]

Article Link: AT&T Raises Smartphone Upgrade Pricing From $15 to $20 to Match Verizon's New Fee[/QUOTE]

Doesn't this get close to Price Fixing as a definition. I know there isn't a clear sign of collusion, but its real darn close, no?

 

[jlc1978]

Doesn't this get close to Price Fixing as a definition. I know there isn't a clear sign of collusion, but its real darn close, no?

As long as there is no communication about pricing, or special agreements such as best price guarantees to maintain price structures absent direct communications, then it's probably not price fixing. Now, if you use something to signal a price change to see competitors reactions or prevent reactions, such as airlines did with the FU fares then it's probably illegal.

 

[gngan]

10 hours late

Yup. MR works 24/7. They should post this within a minute.

 

[Victor Mortimer]

Does this mean they charge you if they do it for you, or if they sense a different IMEI on the same SIM card? Back when I was with AT&Turd, I had two iPhones that I would swap SIM cards between when my battery ran down. (Yes, I am one of the people who is STILL pissed about the iPhone not having a quickly-swappable battery like my old Panasonic brick.) These days my 6+ doesn't run down nearly as quickly, and battery cases are a thing, so it's not as big a deal. But I used to change phones as often as a few times a day. I would be really really angry if they started charging me for swapping phones.

 

[RicD]

Wow, gotta love that. Thank god I switched to T-Mobile.

They're one of the few companies you can trust when they claim it's cheap, easy and works (assuming they have good coverage in your area, of course).

One hundred percent I agree with you. Two years ago I switched to T-Mobile, absolutely will not return to AT&T nor Verizon.

 

[617aircav]

One hundred percent I agree with you. Two years ago I switched to T-Mobile, absolutely will not return to AT&T nor Verizon.

Cancelling my Verizon contract at exactly one month in. No way I'm going to keep paying $70 a month for just 1gb. No way.

 

[Vanilla35]

One hundred percent I agree with you. Two years ago I switched to T-Mobile, absolutely will not return to AT&T nor Verizon.

It's a great time to be a T-Mobile customer, because everyone basically offers the same thing. LTE speed is usually even a little better on T-Mobile because the network is less congested. The only potential downside is the hypothetical occasional lack of building penetration, but I haven't had an issue with that ever, and I am in and out of normal business buildings and underground metro daily. So all in all, good price, same technology.

 

[cwwilson]

lol at everyone threatening to switch. Where are you going to go? Every carrier is doing whatever it takes to rip you off. They will get your money one way or the other. We are nothing but rats running around in a corporate maze. They are laughing their way to the bank as they watch us scurry around like good little sheep.

You know what they say, the grass is always greener on the other side...because that's where the cows crap.

 

[kevink2]

And yet my cell phone bills are less than they have ever been, not just by a small amount but by a large one.

Actually my cheapest phone plan was my first one in the 90's. Bag phone, about $20+tax/month. And I got 15 minutes included! Back when a cell phone was in case I had car problems, and not to use as primary phone.

I'm now trying a $45/month prepaid plan, from Verizon, which is cheaper than I've paid for many years. Still have to try it on highway, but so far the only disadvantage vs a post paid plan is no VoLTE.

 

[chiefsilverback]

In readiness to upgrade my wife from a 5S to an SE I got on to ATT chat support and have a nice transcript where they clearly tell me that I will not be charged a $20 'upgrade' fee if I "bring my own device". Let's see what happens when the new phone arrives and I pop my wife's SIM card into it...

 

[617aircav]

lol at everyone threatening to switch. Where are you going to go? Every carrier is doing whatever it takes to rip you off. They will get your money one way or the other. We are nothing but rats running around in a corporate maze. They are laughing their way to the bank as they watch us scurry around like good little sheep.

You know what they say, the grass is always greener on the other side...because that's where the cows crap.

Let me see. I went from paying Verizon $70 plus tax a month last week to paying simple mobile $40 a month with tax.

 

[mountain]

Everyone should just jump ship to let these two greedy companies crash. Vote with your wallet. They keep on raising prices on everything and add very little to the package.