Tuesday, 18 December, 2018

ATT matches Verizon, increases its upgrade fee from $15 to $20

Nellie Chapman | 08 April, 2016, 18:38

The second largest carrier in the country is following in its footsteps, AT&T has also introduced a new $20 upgrade fee for its customers. MacRumors published a leaked memo, which said the upgrade fee applies when customers buy their phones from Verizon-whether they pay full retail price or make monthly payments on an installment plan-and also when customers enroll in Apple's iPhone upgrade program.

The move follows something similar from Verizon Wireless, which also started charging $20 for an upgrade fee.

Now AT&T has raised its upgrade fee from $15 to $20, following Verizon.

So while AT&T and Verizon are feeling some competitive pressure from T-Mobile (which doesn't charge such a fee), it's apparently not enough pressure to keep the two companies from raising rates in nearly flawless unison. Sure, we're just talking about a $5 price hike here, but what's annoying about the fee increase is that it's an arbitrary bump on top of what's an arbitrary charge to begin with. However, upgrade fees for two-year contract agreements remain at the usual $45. Why exactly does AT&T say it needs to charge an activation fee? And Verizon isn't charging its customers for bringing their own devices, but AT&T is charging a one-time fee of $20 for the privilege of using customer provided equipment on its network. Note: Two year agreements are available only on select devices. AT&T and Verizon both charge $20, while Sprint charges a fee of up to $36 per device.

Verizon is charging $40 per phone for two-year contracts while AT&T has set its fee for two-year agreements at $45.