AT&T's Activation/Upgrade Fee Was Just Raised from $36 to $40 Effective Yesterday

Discussion in 'Android News' started by dgstorm, Jun 9, 2014.

  1. dgstorm

    dgstorm Editor in Chief Staff Member Premium Member

    Joined:
    Dec 30, 2010
    Messages:
    8,232
    Likes Received:
    2,066
    Trophy Points:
    378
    Location:
    Austin, TX
    Ratings:
    +2,133
    [​IMG]

    Raising prices is pretty much expected nowadays, but some companies do it an alarming rate. The latest example of this is from AT&T. As of yesterday (June 8th, 2014), AT&T raised their activation/upgrade fee from $36 to $40. It's not a big bump, but when you factor that activation fee in to a large customer base, the extra profit generated will be in the tens of millions.

    Of course, there's nothing wrong with a company wanting to earn more profit and offset inflation, but sometimes it might be worth wondering if the cost increases are outpacing inflation an simply making it worse. Obviously, most of our members here on DroidForums are on Verizon, but we know there are quite a few of you who have switched to other carriers too. Sound off with your perspective.

    Thanks for the tip, jackiescivic!
     
  2. Jeffrey

    Jeffrey DF Administrator Staff Member Premium Member

    Joined:
    Jan 30, 2012
    Messages:
    3,364
    Likes Received:
    1,083
    Trophy Points:
    323
    Location:
    Thailand
    Ratings:
    +1,161
    Current Phone Model:
    LG G3
    Considering the current US inflation rate is 2%, looks like AT&T is getting about 11%
     
    • Like Like x 1
  3. LoneWolfArcher

    LoneWolfArcher Senior Member

    Joined:
    Dec 29, 2009
    Messages:
    1,280
    Likes Received:
    175
    Trophy Points:
    63
    Location:
    Michigan
    Ratings:
    +200
    Squeeze the onion!
     
    • Like Like x 1
  4. Narsil

    Narsil Active Member

    Joined:
    Nov 5, 2009
    Messages:
    617
    Likes Received:
    150
    Trophy Points:
    43
    Location:
    Central Florida
    Ratings:
    +156
    Huh...I guess you can squeeze blood from a turnip if you try hard enough.
     
  5. Jeffrey

    Jeffrey DF Administrator Staff Member Premium Member

    Joined:
    Jan 30, 2012
    Messages:
    3,364
    Likes Received:
    1,083
    Trophy Points:
    323
    Location:
    Thailand
    Ratings:
    +1,161
    Current Phone Model:
    LG G3
    At&t knows very well that most peeps will think "it's only 4 bucks". Well 4 bucks here and there can quickly add up to a mortgage payment.
     
  6. dgstorm

    dgstorm Editor in Chief Staff Member Premium Member

    Joined:
    Dec 30, 2010
    Messages:
    8,232
    Likes Received:
    2,066
    Trophy Points:
    378
    Location:
    Austin, TX
    Ratings:
    +2,133
    AT&T currently has approximately 100 million customers. If even 10% of those upgrade per year, that amounts to $40 Million USD. That's a hefty mortgage payment, or at least a tidy profit for basically doing nothing different than what they were already doing.
     
  7. bkdodger

    bkdodger DF Super Moderator Staff Member

    Joined:
    Dec 13, 2011
    Messages:
    4,122
    Likes Received:
    1,068
    Trophy Points:
    258
    Location:
    Brooklyn, New York
    Ratings:
    +1,091
    Current Phone Model:
    Nexus 6
    Thank you company discount ..waived my fees ..too much already for the rest though

    M8 tap'd
     
  8. kodiak799

    kodiak799 Silver Member

    Joined:
    Feb 20, 2010
    Messages:
    5,080
    Likes Received:
    336
    Trophy Points:
    198
    Ratings:
    +369
    This is really pretty ridiculous, especially now that activation amounts to the painstakingly difficult task of swapping a micro sim.

    The upside of buying retail (to keep unlimited) is I don't have to wait there an hour, like an idiot, waiting for a rep to set-up my phone as if I've never owned a smartphone or even a computer.
     
  9. jackiescivic

    jackiescivic Senior Member

    Joined:
    Feb 10, 2011
    Messages:
    1,143
    Likes Received:
    339
    Trophy Points:
    83
    Location:
    Muskego, WI
    Ratings:
    +350
    My thought is that they raised the fee because they want people to finance their device(s). No activation/upgrade fee when doing Next, but if you are a new line of service with them and bring your own phone you'll still have the initial activation fee.

    Sent from my XT1080 using Tapatalk
     
Search tags for this page

$40 at&t upgrade fee

,

at&t raising activation fees