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AT&T Confirms Device Upgrade Fee Rising to $36

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Upgrade fee? at&t is GSM...

hman414

Feb 11, 2012, 10:12 PM
I have "upgraded" my handset several times over the years by simply taking out the SIM card in my old handset and placing it in a new handset. I have NEVER been charged an $18 or $36 fee. When exactly is this fee charged?

I can see carriers who do not use GSM charging a fee because you actually have to call/go online to upgrade or change handsets. With GSM the subscriber has all the control.
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T Bone

Feb 11, 2012, 10:14 PM
An 'upgrade' is when you sign a new 2 year agreement in exchange for getting a discount on new equipment, if you always pay the full retail price, you will never get high with an upgrade fee..
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Globhead

Feb 13, 2012, 3:22 AM
"When exactly is this fee charged?"

It is charged when they offer to sell you a phone for $100 as an incentive to sign another 2-year contract, but wish they had talked you into paying $118. It would be criminal fraud to actually say they are charging you $118 for a phone they had agreed to sell you for $100, so they call it something else (absurdly claiming it to be for their cost of a 2-minute website session during which you clicked a few buttons).
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NonBiasedRep

Feb 14, 2012, 9:11 AM
Right because its free to create/run/maintain a website like that Rolling Eyes
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Globhead

Feb 14, 2012, 12:55 PM
You can't possibly be serious. I guess Amazon is losing money every time I place an order and they forget to add a $36 transaction fee.
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NonBiasedRep

Feb 14, 2012, 1:59 PM
Where did I say Amazon is losing money? And where did I say AT&T would lose money if they didn't? Rolling Eyes you must have soooooooomething better to do???
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Versed

Feb 14, 2012, 2:54 PM
How about 100 plus post complaining about Sprints upgrade fee? Hmm? And if so, there would be people saying positive things about it and how Sprint (or pick any other non-AT&T carrier that has one) and how its needed and a small expense. I said earlier I think its BS, but lets not go overboard.
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NonBiasedRep

Feb 18, 2012, 1:49 PM
Nooooo theres nothing but inteectual debating going on here Wink
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T Bone

Feb 14, 2012, 1:27 PM
The purpose is to recoup part of the cost of the discount you were offered....

Think of it this way....you're getting a phone that is worth somewhere between $500-$700, and you're getting it for at least 75% off and maybe as much as 100% off depending on the make and model and whatever promotions are going on

So when the carrier sells you a phone, they take a big hit, they lose money. Indeed, the carrier loses money even if you buy the phone at the no contract price.

The upgrade fee is simply to re-coup a fraction of that loss....it's like when you buy a discount card at a store, $25 a year gives you a 25% discount on everything in the store....well, the upgrade fee is like that....$36 for a 75%-100% discount....it is not unreasona...
(continues)
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Globhead

Feb 14, 2012, 4:35 PM
Obviously, but that means the discount was not honestly presented. If they only want to discount the phone by $214, they should just list that as the discount up front. Claiming to offer a $250 discount and then taking back $36 before the phone is delivered is just sleazy nonsense. If recovering the cost of a discount is a valid excuse, why not do it for the entire amount! FREE $300 PHONE (*plus $300 fee)!
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NonBiasedRep

Feb 18, 2012, 12:41 PM
Simple answer: Marketing. Simply dosn't sound as appealing.
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DAntiVirus

Feb 13, 2012, 9:54 AM
Well if you consider that AT&T had to eat BILLIONS at the end of last year in contracted fees due to them not getting T-Moible, then you can understand where the new $36 fee is coming from.

What? You thought they were just going to forget about having to eat that much profit at the end of the year? They're going to get their money back somehow and that somehow is out of your pocket whether you like it or not.
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