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AT&T Confirms Device Upgrade Fee Rising to $36

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Top message:  Upgrade fee? at&t is GSM... by hman414   Feb 11, 2012, 10:12 PM

Replying to:  Re: Upgrade fee? at&t is GSM... by Globhead   Feb 13, 2012, 3:22 AM

Re: Upgrade fee? at&t is GSM...

by 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 unreasonable.

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