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AT&T Confirms Device Upgrade Fee Rising to $36

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WHAT Costs Will Be Increased?

Raider Duck

Feb 12, 2012, 11:21 AM
Wireless devices today are more sophisticated than ever before. And because of that, the costs associated with upgrading to a new device have increased and is reflected in our new upgrade fee.


Exactly what "costs have increased?" They switch your account from one SIM to another. How is this any more difficult with a more sophisticated phone? Rolling Eyes
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Ken6271

Feb 12, 2012, 11:39 AM
They are speaking of giving you a huge discount on the phone and in many cases the discount is 400-500 dollars of the retail price of the phone. They are saying that the costs of devices have increased. The fee increase is in my opinion makes sense. You think when you upgrade to a iphone 4s 16 gb that the actual cost is 200.00?..no it is a 650 dollar phone.
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edzero

Feb 12, 2012, 1:09 PM
exactly....that No Commitment price is not so high as a punishment. Its the actual cost of the phone.
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en102

Feb 12, 2012, 4:00 PM
If the cost of the device has gone up, then that should be reflected in the cost of the device price itself, not a 'device upgrade fee'.

If I was to 'upgrade' my iPhone 4 to another iPhone 4, or even 'downgrade' to a 3GS, I would still have to pay an increased fee. This does not make sense.

They are effectively tagging 'everyone' an administrative fee of $36, wether you upgrade or even downgrade.
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KOL4420

Feb 13, 2012, 8:58 AM
Wow... you seriously have no idea... because you downgrade doesnt change anything the phones are still $300+ for the non smartphones also if you increase the price of the phones people wouldnt be able to afford them like yourself complaining about a$36 that is billed to your account and not payed for until 30 days later... pay the fee or switch topre paid simple
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Ghosthendrikson

Feb 13, 2012, 12:24 PM
No KOL, I'm afraid you missed his point. The person you replied to is advocating that the change in cost of subsidizing the phone be reflected in the upgrade price of the phone the consumer pays.

Increasing the "Upgrade" fee and blaming the cost of the fee on the cost of equipment is underhanded and doesn't make a lot of sense.

Also, your argument that it's better to pay it on your bill than at the time of the phone purchase makes no sense to me. Either way the person is going to have to pay that fee. Why not pay it when you purchase the phone?

"Pay the fee or switch to prepaid" - better yet, switch carriers.
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LibtardExposer

Feb 12, 2012, 5:30 PM
But I guess you forget you are paying a monthly bill that is making them money ! Taxes keep going up, Water Bills keep getting the rates raised, the power company keeps charging more and the cell phone bills keep going up. But peoples means are not going up. I can't justify this one bit and anyone else that does must not really understand the way the world is working or they must live at home or heck they may be on welfare because times are hard and the way things keep going up I say soon many may have to start cutting back on everything (not like we are not already having to do that) Give me a break.
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Ken6271

Feb 13, 2012, 8:50 AM
This increase in not really a big deal. What? You upgrade like every 2 years? Rolling Eyes
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KOL4420

Feb 13, 2012, 10:00 AM
If you cant afford it awitch to pre paid. if you cant afford it maybe you shouldnt buy it or consider it until you can. Thats what my broker tells me and well it sounds like a good piece of common sense give yourself a break and shop around
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Fredd

Feb 13, 2012, 11:51 AM
Which is exactly what many will do.
There is enough complaining about AT&T, and this fee increase mey help increase churn.
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island-guy

Feb 13, 2012, 1:22 PM
Anyone in retail knows that msrp is bs. No retailer buys anything near the msrp and in most cases sells you their 'discounted' price. You really think car dealers buy their cars from manufacturers at the window msrp? If you bought your last car at the stickered msrp and thought you got a deal you sir just made the dealer a lot of money. This upgrade price increase is riding on the coat tails of their justified data throttling for those on unlimited data plans. I truly hope at&t sees some serious churning from all of these arrogant moves they're making nowadays.
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eskeebel

Feb 13, 2012, 1:35 PM
You have no idea what you're talking about.

You can't make this a conspiracy theory.
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dlmjr

Feb 13, 2012, 2:46 PM
Who said ATT pays retail for their phones?
Did you just pull that out of your hat?

Discounts to the carriers vary dependent upon volume, except for iPhone as I understand it.
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island-guy

Feb 13, 2012, 11:59 PM
Everyone is under the impression that the wireless carriers intentionally lose money by selling phones at a loss to customers in the hopes of making their money back in their service charges in the months to come. I think bit off more than they could chew in their Iphone deal but that's something else.... Anyways, I doubt they lose one red cent if it's a single transaction and the customer stays for the duration of their contract. I can see the loss on warranty exchanges or service liabilities during the phone warranty period but I cannot see how they can justify the upgrade price increase. Just look at how they hack their phone prices after they're released. Why even go there? Just make each phone $30 more expensive.....don't pull this need...
(continues)
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dlmjr

Feb 14, 2012, 2:35 PM
The carriers would lose money at current prices of phones, if they did not keep the customer for 2 years or charge an early termination fee.

Reduced costs of phones has been around for quite some time, and in the infancy of the industry, it was a way to lure customers, especially ones who never had cellular service.

Now, as the market is maturing, the exponential growth bloom is gone, the carriers will be charging more for the phones.

I'd love to see the figures of churn customers compared to brand new customers (never had sv prior).

ATT is being somewhat disengenous with the upgrade fee. The price of the phone is a lure. Get a $600 iPhone for $199. If you make it $235, you will lose some customers. There are number threshold...
(continues)
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NonBiasedRep

Feb 14, 2012, 2:39 PM
+1 well said
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JeffroPuff

Feb 16, 2012, 1:33 PM
I pay 399.99 for the Atrix 2. I sell it for 99.99. That's a lot of "red cents" I lose up front. AT&T pays me a commission based off the rate plan and features my employees sell.
So... on a $9.99 partner line, let's say with a $20 data plan, factoring in the subsidy cut on the phone, assuming AT&T didn't pay commissions on the sale as well, it would take 10 months before they turn a profit on the customer. In real life, it's much longer.
With all due respect, you don't know what you're talking about. I agree with the point that the fee increase is the right place to drive revenue, but you're wrong. It drives me nuts when people think we as dealers don't take a hit on the devices.
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