I recently replaced two 4s models with a 7 and 7+. Of course, that required a different sized SIM card. I dropped by an AT&T store and they gave me two SIMS free. Then, I got the two unlocked "world" phones at an Apple store. Called AT&T to deactivate the 4s and activate the 7. Zero hassle and zero activation fees. That said, I do have other Apple gear on a data plan, and numerous additional AT&T services (landline, UVERSE TV, internet), but I don't think that played a role in them not charging an activation fee. Didn't hurt though, that's for sure.