att_416x416Beginning August 1, AT&T will raise its activation/upgrade fee for customers signing up for a one- or two-year contract, alongside introducing a specific activation fee for all AT&T Next and Bring-Your-Own-Phone customers.

According to sources speaking with Droid Life, the new contract upgrade fee will increase from $40 to $45, while the activation cost for Next and BYOP customers will be $15. If true, AT&T will have the highest activation fee amongst its competitors. Other carriers, like Verizon, sit around a $40 upgrade fee cost currently.

With the uptick in price for the carrier's contract activation charges, AT&T is changing its installment plan option, AT&T Next, from a no-cost-to-start service to requiring a $15 activation fee. The same $15 charge will be placed for customers interested in activating a new line of service with the BYOP program, which lets customers save money on their yearly contracts by bringing in a phone purchased elsewhere to avoid paying full-price.

It appears that AT&T will grandfather in existing AT&T Next customers who have a plan with the company prior to August 1, and won't be charged the $15 fee on their next upgrade. However, the carrier noted that this policy is "subject to change," meaning existing Next customers may be facing the $15 charge sometime down the line of their upgrade cycle, if not immediately after the changes take effect.

Tag: AT&T

Top Rated Comments

Chuck Kostalnick Avatar
115 months ago
What a BS charge to begin with. Way to go AT&T! #*******s
Score: 24 Votes (Like | Disagree)
levitynyc Avatar
115 months ago
Activation fees and registration fees should be illegal.

What a joke.

It literally costs them nothing to "activate" a phone.

Give me a break.
Score: 18 Votes (Like | Disagree)
TonyC28 Avatar
115 months ago
When I read this from a European's perspective the first thought I had was how can this happen? Then I looked up average contract costs and I was even more confused. Aren't there four networks that compete? I have three were I live and dozens of MVNOs. Can someone explain to me why mobile is so expensive in the US even with competition? (not trying to be snarky or anything, I actually don't understand).
They don't really compete here. More like collude.
Score: 11 Votes (Like | Disagree)
SqB Avatar
115 months ago
Good bye AT&T. You are heading in the wrong direction.

Maybe in a couple of years we'll be reading about the deal where T-Mobile is bidding to buy a beleaguered and failing AT&T.
Score: 10 Votes (Like | Disagree)
vmachiel Avatar
115 months ago
When I read this from a European's perspective the first thought I had was how can this happen? Then I looked up average contract costs and I was even more confused. Aren't there four networks that compete? I have three were I live and dozens of MVNOs. Can someone explain to me why mobile is so expensive in the US even with competition? (not trying to be snarky or anything, I actually don't understand).
Score: 10 Votes (Like | Disagree)
nepalisherpa Avatar
115 months ago
When they advertised Next, they boasted about "no activation fee". Now that most users have switched, they are bringing it back.
Score: 9 Votes (Like | Disagree)

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