Please indicate where in the
current service agreement AT&T makes an express provision for an "upgrade fee," because I've looked and have yet to find it.
AT&T's past rationale for this fee is that it costs them money to pay sales representatives to "educate" customers on what phone suits their needs, as well as sit there and punch in numbers on their point-of-sale terminals to activate the phone and put you on the "correct" plan. There's just two little flaws with this rationale:
1. Assuming that
all wireless sales, including upgrades, require a salesperson to complete the transaction, this cost should be built into the rate plan rather than treated as an additional cost burden, since AT&T is basically saying that if there were no sales reps, they couldn't be in business and can't sell you anything. Do computer stores, appliance stores, electronics stores, grocery stores and other retail establishments assess a fee to interact with their salespeople to do conduct necessary transactions that can't otherwise be done? No, they don't.
(An exception is when sometimes, an installer must come to your home to do an installation, or install equipment in a car. But AT&T wireless salespeople don't make house calls, nor do they install equipment in cars.)
Not to mention, most iPhone buyers aren't "educated" at all by AT&T sales staff. they almost always come in knowing exactly what they want, and sometimes even have to resist a sales pitch by a stubborn clerk who would rather sell you an Android device, even if that's not what you want.
2. The situation makes even LESS sense when you buy from an Apple Store, or from Apple's online website, or other third party like Best Buy or Walmart. AT&T then pays no sales staff to sell you a phone, or activate it. The process, from AT&T's standpoint, becomes entirely automated, with their account systems being notified electronically that you have a new phone and possibly a new SIM card. Yet, AT&T pockets the "upgrade fee" for work they nor their staff never performed.
So I have little sympathy for a company that made a $3.8 Billion profit last quarter, when they say that selling you something is a "burden" that they have to charge you extra for. Last time I got charged this fee, I made these points and got my fee waived. I intend to do it again this time around.