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

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.

ATT Logo
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.

Wireless activation and upgrade fees,1 are one time fees that may be added to your first or next AT&T bill.
- Activation and upgrade fees for smartphones with AT&T Next - Activation and upgrade fees are $20 per smartphone added or upgraded with AT&T Next.
- Activation fees for installment agreements and bring your own devices - The fee is $20.
- Activation and upgrade fees for two year agreement - Fees are $45. Note: Two year agreements are available only on select devices.

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.

Tag: AT&T

Top Rated Comments

garirry Avatar
105 months ago
"Let's rip off our customers even more now!"
Score: 51 Votes (Like | Disagree)
MadDog31 Avatar
105 months ago
Competition in the wrong direction.
Score: 46 Votes (Like | Disagree)
DrewDaHilp1 Avatar
105 months ago
I never understood why they charged the fee in the first place. I do all the work.
Score: 46 Votes (Like | Disagree)
rorschach Avatar
105 months ago
Price fixing? I would hardly be surprised with these two companies.
Score: 34 Votes (Like | Disagree)
krfr Avatar
105 months ago
Why not keep it $5 less as an incentive? C'mon AT&T, just cause others are doing it doesn't mean you need to match. Its called competition!
Score: 25 Votes (Like | Disagree)
NovemberWhiskey Avatar
105 months ago
Laissez Faire dickwadism
Score: 21 Votes (Like | Disagree)

Popular Stories

maxresdefault

Apple Announces 'Let Loose' Event on May 7 Amid Rumors of New iPads

Tuesday April 23, 2024 7:11 am PDT by
Apple has announced it will be holding a special event on Tuesday, May 7 at 7 a.m. Pacific Time (10 a.m. Eastern Time), with a live stream to be available on Apple.com and on YouTube as usual. The event invitation has a tagline of "Let Loose" and shows an artistic render of an Apple Pencil, suggesting that iPads will be a focus of the event. Subscribe to the MacRumors YouTube channel for more ...
Apple Silicon AI Optimized Feature Siri

Apple Releases Open Source AI Models That Run On-Device

Wednesday April 24, 2024 3:39 pm PDT by
Apple today released several open source large language models (LLMs) that are designed to run on-device rather than through cloud servers. Called OpenELM (Open-source Efficient Language Models), the LLMs are available on the Hugging Face Hub, a community for sharing AI code. As outlined in a white paper [PDF], there are eight total OpenELM models, four of which were pre-trained using the...
Apple Vision Pro Dual Loop Band Orange Feature 2

Apple Cuts Vision Pro Shipments as Demand Falls 'Sharply Beyond Expectations'

Tuesday April 23, 2024 9:44 am PDT by
Apple has dropped the number of Vision Pro units that it plans to ship in 2024, going from an expected 700 to 800k units to just 400k to 450k units, according to Apple analyst Ming-Chi Kuo. Orders have been scaled back before the Vision Pro has launched in markets outside of the United States, which Kuo says is a sign that demand in the U.S. has "fallen sharply beyond expectations." As a...
iPad And Calculator App Feature

Apple Finally Plans to Release a Calculator App for iPad Later This Year

Tuesday April 23, 2024 9:08 am PDT by
Apple is finally planning a Calculator app for the iPad, over 14 years after launching the device, according to a source familiar with the matter. iPadOS 18 will include a built-in Calculator app for all iPad models that are compatible with the software update, which is expected to be unveiled during the opening keynote of Apple's annual developers conference WWDC on June 10. AppleInsider...
iOS 17 All New Features Thumb

iOS 17.5 Will Add These New Features to Your iPhone

Sunday April 21, 2024 3:00 am PDT by
The upcoming iOS 17.5 update for the iPhone includes only a few new user-facing features, but hidden code changes reveal some additional possibilities. Below, we have recapped everything new in the iOS 17.5 and iPadOS 17.5 beta so far. Web Distribution Starting with the second beta of iOS 17.5, eligible developers are able to distribute their iOS apps to iPhone users located in the EU...