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AT&T Confirms Device Upgrade Fee Rising to $36

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Top message:  WHAT Costs Will Be Increased? by Raider Duck   Feb 12, 2012, 11:21 AM

Replying to:  Re: WHAT Costs Will Be Increased? by island-guy   Feb 13, 2012, 11:59 PM

Re: WHAT Costs Will Be Increased?

by 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 thresholds that are automatic turn offs for shopping customers.
It's a marketing thing.

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