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Thread: Activation fee increase, $40 now

  1. #1
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    Activation fee increase, $40 now

    http://www.phonedog.com/2014/06/12/a...-goes-up-by-4/

    AT&T’s got a number of different ways for consumers to pick up a new smartphone: they can buy a device at full retail price, enroll in one of two AT&T Next installment options or sign a traditional 2-year contract. That last option may be slightly less attractive to folks trying to save as much cash as possible when upgrading, though, as AT&T has upped its activation fee for 2-year contracts.

    AT&T has confirmed to FierceWireless that it has raised the activation fee for 2-year contracts from $36 to $40. The change went into effect on June 8. AT&T spokesman Mark Siegel explained that the decision to increase the activation fee was made because “there are administrative and other costs associated with activating or upgrading a device.”

    It’s never good to see a carrier bump up its fees, especially when they’re standard like this activation fee. The good news is that because this charge only applies to customers signing a 2-year commitment, the activation fee can be avoided if you sign up for an AT&T Next plan or go with a different buying route.
    Sent from my SAMSUNG-SM-G900A using Tapatalk
    iPhone Xs Max , At&t Unlimited Plus Austin, TX .................... Grande 1000/50, $69.99/month

  2. #2
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    Att almost always waived them for me anyways.
    Sent from my RM-915_nam_usa_228 via the HowardForums WP7 App

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    AT&T is definitely pushing users toward the Next Value Plan model.

  4. #4
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    Yeah they def prefer it. When I utilized next they treated me really well. Gave me just about everything I wanted(within reason).

    I'm at the point now I prefer next and the outdated phones I get are more each month on two year.
    Sent from my RM-915_nam_usa_228 via the HowardForums WP7 App

  5. #5
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    So five iPhone 6 will cost me $200 in activation fees!!!

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    there are administrative and other costs associated with activating or upgrading a device.
    Sooooo.....there are no "other costs" with setting up with the Next program? It's the same thing, no? Contract or Next. There is still computer work and processing to be done with the in store rep or online people.

    I'm NOT saying I want to be charged for Next, I'm just looking at both sides!

  7. #7
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    Yeah it puts people between a rock and a hard place in certain scenarios. To avoid the fee you either buy outright or from another source, or go on next. But then if the payment is 25 it turns the 45 plan into a 70 plan. Then to get the 60 plan you have to do contract and pay the 40 fee so its tradeoffs on both ends.

  8. #8
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    True. But what I was getting at is.....why is there no activation fee on next, only contract sales? Either way someone is entering a phone into the system, etc. Seems to me both methods would cost the company the same in "administrative and other costs" as the spokesman said, no?

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    Yeah seems like both would be the same process and cost the same. I guess they use it as an incentive for people to go on the next plan. I'm ok with next on the cheaper more outdated phones but with a new model like the next iphone it puts the monthly cost high even on the lowest data plan.

    I wonder when the two year option will go away completely

  10. #10
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    Will the fee be waived if you have a company discount on your account? Honestly I'd still pay the fee when I upgrade as I am still on the old unlimited data plan for $30, $5 for 200 text which I hardly use and the 450 min plan for 39.99. If I were to change to the next plan I would be paying 122.00 a month not including taxes and fees for a 4GB data plan. Even if I were to do the 2GB plan I would still pay over 92.00 a month.

    As far as the fee is going, I'm one of the many ex-at&t agents that post here and the fee is a joke. We would waive it quite often and it we explained how charging the fee allowed us to offer bigger discounts to customers.

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    Every charge or fee is carefully calculated by the carrier particularly in-store reps who are paid commission.

    AT&T has been doing a great job signing up new customers but at a slight loss financially. A $5 bump in fees here or there will offset their losses somewhere else.

    As for me I'm never going back to 2 year contracts and activation fees.

  12. #12
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    Quote Originally Posted by holaDude View Post
    Will the fee be waived if you have a company discount on your account?
    Whether or not the fee is waived all depends on the FAN assigned to the account. Some FAN discounts will waive the fee, but many will not.
    Don't make me turn this car around.....

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    Quote Originally Posted by Shizam76 View Post
    True. But what I was getting at is.....why is there no activation fee on next, only contract sales? Either way someone is entering a phone into the system, etc. Seems to me both methods would cost the company the same in "administrative and other costs" as the spokesman said, no?

    via the HoFo App
    If you walk into an att store and activate a go phone there are no activation fees charged. They are charging because they can. simple.

    Sent from Surulere, lagos. Nigeria.

  14. #14
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    Imagine the fees after a sprint/tmo deal. SB would surely look for ways to get an nice roi

  15. #15
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    I have never understood the activation fee. The wireless provider is offering a service that they charge for. The system is set up to add people and activate numbers already. Why is there an extra charge for it?
    Current Device: Apple iPhone 5S
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