07-17-2014 11:54 AM
Solved! Go to Solution.
07-18-2014 6:25 AM
I recently purchased a new IPhone and renewed my 2 year contract. And for this offer to give AT&T more business I was assessed a $40 penalty as a processing fee. How is this justified? Is not my monthly 2 year commitment enough? Is not my monthly data plan for 2 iPads enough? Is not my monthly Uverse subscription enough? What exactly is another $40 applicable towards ? Please explain, if you can.
Fees charged are not a penalty. AT&T (and every other provider I'm aware) charges an upgrade if you choose to upgrade your device. You can avoid upgrade fees by not upgrading, using the Next program, or purchasing a phone outright.
07-18-2014 6:38 AM
07-18-2014 7:26 AM
The upgrade fee is the charge for paperwork for a new contract. Almost all of the cell providers have an upgrade fee. If you want to upgrade, you have to pay the fee.
I think that it would be better if they just added the charge to the phonein the first place, no one would care. Customers only see it as another "fee".
07-18-2014 7:49 AM
It's similar to shopping clubs (like Sam's and Costco) that charge a fee to shop there for the privilege of the lower prices that are offered. As others have stated, if you don't take the discount on the device, you don't have to pay the upgrade fee. If you want AT&T to give you a discount on the device, you have to pay a fee for the privilege.
07-18-2014 8:04 AM
07-18-2014 8:09 AM
With all due respect, that's not really an answer. I bought a new phone because the previous one broke. In doing so I decided to give AT&T more business by signing a 2 year contract. Why then is there another $40 assessed? As I asked, do not my monthly fees cover whatever non-existent effort it takes for AT&T to accept more business from me, the customer? If it's not a penalty then is it a surcharge for AT&T to accept more money from me? To purchase the phone outright would be almost triple the contact price, a nice pricing structure created between AT&T and Apple. Granted, the low purchase price is subsidized by AT&T but with my plan I spend in excess of $120/ month just on my phone. That's close to almost $3k by the time the contract is up inclusive of usage, taxes, fees, etc. I'd have to think that more than makes up for the original phone plan price. Regardless of what other carriers do or do not do for customers, my question is to the provider I pay, AT&T.
Why is there another $40 assesed? Because that's how much the upgrade fee is.
I'm not sure what other answer you're looking for.
" If it's not a penalty then is it a surcharge for AT&T to accept more money from me?"
Welcome to capitalism!
07-18-2014 8:19 AM
07-18-2014 8:28 AM
did you get new equipment on contract? Yes you did. Then you UPGRADED your phone to a new one. When you signed the paper work that fee was right there in your face.
07-18-2014 8:31 AM
07-18-2014 9:15 AM
Speaking for myself, I'm not on "retainer" with AT&T. I don't like the upgrade fee myself, but I don't pay it because I buy devices at full price upfront. I don't do this to avoid the upgrade fee, but it is a nice perk since I am not using AT&T to get a discount on the device anyway.
You pay $40 to save ~$400. Most people wouldn't call that a bad deal.
07-18-2014 9:40 AM
I'm not on retainer and I agree that it is B S plain and simple. How much does AT&T pay their office staff per hour? ANd how many hours does it take to click a button and electronically accept a new contract? Yea, bogus.
07-18-2014 10:11 AM
If I'm on retainer to AT&T, they are seriously delinquent on their payments to me!
I just realize that companies charge for their products and services. If there wasn't an "upgrade fee", the price of equipment would be higher, or the monthly services fees would be higher, etc. Like I said, welcome to capitalism.
07-18-2014 5:09 PM
Then why not add it into the cost of the phone- which typically costs a couple of hundred dollars and not call it an upgrade fee?
07-18-2014 7:18 PM
In my case, I did not take any new equipment. The charge was not even mentioned verbally, or in the quote, of which I have a signed copy. But I was charged the amount. And I do not know if I'll have to pay that amount even if I cancel the service after a week of use.