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Upgrade Fee

toddraderman

Jul 24, 2012, 11:31 AM
Verizon is the most disgusting company in American history!!!! They now are charging a 30 dollar upgrade fee when you upgrade your phone. So let's see. You spend 299 plus tax on the full retail price of the phone which brings your upgrade to roughl 350 + and now they add an addiotonal 30 dollars.
TO THE EXECS AT VERIZON. THIS IS NOT HOW YOU TREAT LONG TIME COSTOUMERS WHO CONTIUE TO DECIDE TO GIVE YOU THEIR HARD EARNED DOLLARS.
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toddraderman

Jul 24, 2012, 11:33 AM
Bears Make Money, Bulls Make Money PIGS GET SLAUGHTERED.
VERIZON YOU ARE A BIG FAT OBESE PIG THAT SHOULD BE SLAUGHTERED.
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Victek

Jul 24, 2012, 11:59 AM
Really, your "slaughter" comment made me laugh out loud Smile

When I upgraded last year the additional cost was $20, and it was called an "early upgrade" fee (I was within the last four months of the two year contract). Now I guess you get hit with the $30 upgrade fee regardless of when you do it? I don't know if this is just gouging, but it's clear that everyone hates it and it's really bad PR. If VZW really needs the extra $$ they should find a way to spread it out over the two years.
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daxdcagain

Jul 24, 2012, 1:22 PM
Its not that simple. You dont want to start spreading that cost over two years; marketing has worked real hard to come up with seemingly competitive pricing model. Even if you spread the additional cost out and raise the plan prices it may be the same overall cost but it will still *look like* you are paying more for services.

Besides, upgrade fee is industry standard and Verizon's is surprisingly cheaper than others.
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Victek

Jul 24, 2012, 1:35 PM
daxdcagain said:
Even if you spread the additional cost out and raise the plan prices it may be the same overall cost but it will still *look like* you are paying more for services.

Besides, upgrade fee is industry standard and Verizon's is surprisingly cheaper than others.


I agree there's no way to actually hide the cost. I just think they should stay with the subsidy model which they created in the first place to take away the shock of buying phones outright. Having the subsidy model AND adding on an upgrade fee pisses people off.

Regarding the upgrade fee, when did it become an industry standard? I can remember not paying an upgrade fee in the not too distant past.
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daxdcagain

Jul 24, 2012, 5:43 PM
I think it would be better to try to hide the cost in the device upgrade pricing. Still difficult, and it doesnt resolve the issue of purchasing from a 3rd party.

Yeah, nevermind, there is no solution except getting rid of it altogether which none of the companies are going to do.
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CellStudent

Jul 25, 2012, 6:27 PM
Victek said:
Regarding the upgrade fee, when did it become an industry standard? I can remember not paying an upgrade fee in the not too distant past.


It became a standard practice with the advent of fun-to-use smartphones, though not everyone adopted the policy at the same time. More particularly, it's a result of massive numbers of people returning newly purchased smartphones for refund or exchange.

By adopting the practice of adding a "fee" to the purchase, the carriers make a certain portion of the purchase price non-refundable without actually "raising" the price of the phone.

This is why they haven't just raised the price of all the phones by $30 and calling it all part of the "hardware cos...
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crazyeaglefan236

Jul 30, 2012, 11:07 PM
Company provides 70000+ jobs. Not just cheap minimum labor jobs, but good middle income jobs. Yet they are a fat pig.
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B1112

Jul 24, 2012, 12:21 PM
So I guess that makes sprint, tmobile, and AT&T worse than Verizon since they have been charging the upgrade fee for a while before Verizon jumped on the band wagon.
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Jarahawk

Jul 24, 2012, 6:42 PM
That's what I'm taking about! You tell them! Stand up for your carrier! I remember when Verizon not having an upgrade fee was a sales tool. Then the bean counters got involved.
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60dollarcarcharger

Jul 24, 2012, 1:37 PM
You wouldn't pay the upgrade fee if you bought the phone full retail Laughing

Most carriers charge an upgrade fee... Verizon's is actually cheaper
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Jarahawk

Jul 27, 2012, 7:58 PM
Bend over!

No! It's gonna hurt!

Yeah, but not as much as it would if it were Billy. Compared to him I'm a walk in the park. In fact you should smile and thank me.
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60dollarcarcharger

Jul 31, 2012, 4:51 PM
as much as I appreciate what your point is, the analogy used is hardly a representation of the true story
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epik

Jul 25, 2012, 12:55 AM
I have the fix for your problem: stop signing a contract.

I've been saying this for years now, both on this site, on my own site, and on numerous others. If you don't want to be held to any carrier's requirements, stop signing a contract and start buying your phone differently. Of course, no one really wants to, considering they would then buy used phone or pay a real full retail (what you paid wasn't full retail, unless you bought a flip phone) from then on. But every time you sign a contract to get a discounted phone, you agree to their terms. It's as simple as that. Don't sign a contract and they can't hold you down to much.

I won't drone on about how most carriers, especially all of the major national one, charge this k...
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Jarahawk

Jul 25, 2012, 6:19 PM
Now you know that will never happen. It is much easier to vent here on Phonescoop than actually consider legitimate alternatives. Especially when those alternatives will involve paying more money. Customers aren't going to get a better upfront price than the two year price even with the upgrade fee. In the old days one could simply call Verizon and threaten to cancel one's service. That shid doesn't work anymore. The new Verizon will open the door for you to get out.
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navydave

Aug 4, 2012, 10:44 PM
As well they should Jay and hold it so it don't hit were the good lord split you
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CellStudent

Jul 25, 2012, 6:32 PM
And the reason it doesn't work is because carriers (except for T-mobile) do not offer consumers any monthly discounts in exchange for not incurring a subsidy.

I have to pay the same $XXX.YY per month whether I buy the subsidized phone or whether I buy one off the street without service.

Where's the incentive to spend $300 more for a phone if the long-term cash benefit of the deal is zero dollars? Especially when an outside purchase makes warranty work a nightmare and makes handset insurance almost impossible to get?

The carriers are driving the contract model hard with these policies. They don't want the consumer to see any kind of advantage to off-contract service.
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Victek

Jul 25, 2012, 10:28 PM
CellStudent said:
And the reason it doesn't work is because carriers (except for T-mobile) do not offer consumers any monthly discounts in exchange for not incurring a subsidy.


I don't see the carriers every doing this voluntarily - it will require legislation. Someone will have to sue the carrier for overcharging them for service while using a non-subsidized phone. Boy, is that ever going to take a while Smile
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vzwinagent

Jul 26, 2012, 1:13 AM
Sure you get something, the option to walk away at any time without penalty. Them giving you discounted equipment is for your guarantee to stay, nothing else. You don't sign the guarantee you don't get the discount. So you are gaining the right to leave with no penalty. It's basically an even trade either way. You agree to stay and get a discount, or pay full price and can cancel when you want.

I don't see why it has anything at all to do with service. The whole equipment discount is just about them being guaranteed to have you for 2 years and make enough money off of you to gain back the discount. We all know companies are about making money.
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CellStudent

Jul 29, 2012, 4:30 PM
vzwinagent said:
Sure you get something, the option to walk away at any time without penalty. Them giving you discounted equipment is for your guarantee to stay, nothing else. You don't sign the guarantee you don't get the discount. So you are gaining the right to leave with no penalty. It's basically an even trade either way. You agree to stay and get a discount, or pay full price and can cancel when you want.

I don't see why it has anything at all to do with service. The whole equipment discount is just about them being guaranteed to have you for 2 years and make enough money off of you to gain back the discount. We all know companies are about making money.


Cost of buying a smartphone unsubsid...
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epik

Jul 29, 2012, 11:08 PM
CellStudent said:
The carriers have concocted an environment where it is actually cheaper to have a contract than not have one, even if you decide to jump ship 1/2 way through each 2 year term.


How true...
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Jarahawk

Jul 31, 2012, 3:01 PM
Years ago my buddy worked at Alltel and I worked at AT&T Wireless. Customer enters his store to upgrade her phone but becomes angry that there is a $35 upgrade fee.

"If you don't waive this fee, I am going down the street to AT&T!". She says.

"I'm really sorry but I don't have the ability to waive fees or give credits. If you do go to AT&T talk to ask for..."

Lady came in stunned that he allowed her to walk. I took it in stride having worked there in the past. It was a nice three line activation. I took him out to lunch and we laughed about it. With LNP I would port every year or so especially since I have a Google number if it weren't for the unlimited data loss. Once it is gone...it's gone for good.
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daxdcagain

Aug 7, 2012, 2:42 PM
CellStudent said:


Cost of buying a smartphone unsubsidized: $400 more than getting a subsidy. AND you are GUARANTEED that you will have to pay the extra $400 for the phone.

Cost of jumping ship after buying a subsidized smartphone: $350 maximum, but with the sliding scale ETF, it could be way under $250 after only a short portion of the contract.

And the cost of monthly service is the same.

The carriers have concocted an environment where it is actually cheaper to have a contract than not have one, even if you decide to jump ship 1/2 way through each 2 year term.


This is why it is idiotic when people on here clamor for no contracts; they really don't understand that its the same either way, ...
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Santi

Aug 13, 2012, 11:06 AM
So how can US Cellular give discounted equipment without requiring a contract?
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Victek

Jul 25, 2012, 10:37 PM
epik said:
I have the fix for your problem: stop signing a contract.

We have the power and we don't use it. If you don't like the fee, pay the full retail (the real one, not the one you think you paid), or find another company that won't charge you (yet).


There are (at least) two disincentives to doing this; One is you still in effect pay for the subsidized handset even though you haven't taken the subsidy. The other is phone technology is moving so quickly that it's hard to keep using a phone for more than two years. Once everyone makes the transition to 4G maybe it will be possible to keep phones longer and stay away from contracts. Still, without receiving a discount on the price of service it's ...
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epik

Jul 26, 2012, 8:23 PM
Yeah, an lower monthly rate would be great, but it's not happening. Aside from them making more money off you, you still have an edge over the carrier, which may be worth much more to some consumers.
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acdc1a

Aug 3, 2012, 10:27 PM
Better solution. L-E-A-V-E!

Find the carrier that's offering a waived activation fee and switch every 2 years. If everyone churned every 2 years it would send a message to the carriers. Remember the days prior to consolidation of the industry? Sprint (as an example, not to pick on Sprint) would throw something customer unfriendly out there, no one would follow suit, and the change would go away. Swap fees circa 2003 anyone? Unfortunately with the duopoly that's emerging that's not going to happen.

Better yet, if it suits your needs try prepaid. You can get advanced phones on advanced networks for a lower MRC. The downside is the equipment usually costs more and there may be some coverage limitations depending on carrier.
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Jarahawk

Aug 4, 2012, 1:01 AM
Or...stay and download torrents on their vaunted LTE network with your grandfathered Unlimited Data plan. Ha! I would do it but I have no idea how to use the torrents once I have them.
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Joshiwa

Aug 6, 2012, 10:18 AM
US Cellular doesn't make you re-sign a contract, but does have you pay a $30 device activation fee whenever you get a phone at discounted pricing. So the fee is still there, but the commitment is not.

Reality is though that not everyone has the funds to buy a phone at full retail, or used price. Especially when they have 4-5 lines on an account.
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txtjunky

Jul 26, 2012, 3:56 PM
You are paying full retail price? Jesus, they don't give you a discounted price? A full retail price on a basic phone is about that much, but if you are paying full retail price for a smart phone, the actual cost is around 700-800. So you still are gettting the better deal in this situation, but Verizon sucks regardless.
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epik

Jul 26, 2012, 8:25 PM
There's plenty of "sucks" and "suckers" to go around.
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crazyeaglefan236

Jul 28, 2012, 8:39 PM
You do realize that Verizon is subsidizing phones more now then ever before? You do know that your wireless carrier only "owes" you network coverage? Just like your cable company only owes you cable service, walmart only owes you to have products on their shelf for you to buy, your electric company only owes you power to your house...etc.

Verizon spends more money for upkeep and building out their network so you can have the latest technology delievered at the fastest rate..how about that for treating you good as a customer?

Discounted phone equipment is more then ever before. Yes, it has reached a critical mass where the carrier is taking such a loss up front on equiment that a fee offsets some of that loss. It truly is getting to t...
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Jarahawk

Jul 29, 2012, 1:56 PM
Rolling Eyes
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epik

Jul 29, 2012, 11:02 PM
The only problem with your examples is I can't go an purchase any phone - I have to go get a Verizon-authorized one.

The cable company doesn't dictate that I use a certain TV, BluRay player, or otherwise.

Walmart doesn't dictate that I can only use Great Value products.

The power company doesn't dictate what light bulbs I buy, or what brand of microwave I plug into the wall.

But Verizon does. Verizon dictates that I will be using a Verizon-authorized phone. Sure, I pay Verizon for network coverage (which, by the way, in their own terms and conditions they cannot and do not guarantee, so there's no real "we owe you network coverage" anyway), but even if I want to dictate how, where, when, and with what equipment I chose to use ...
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crazyeaglefan236

Jul 30, 2012, 11:16 PM
Verizon dies require you to purchase equipment that they approve to be connected to their network...correct. However, they do not require you to purchase the phone from them, or it be new, or any other alternative. That being said, if they offset that much money when they sell the phone, yes they can set the rate terms. Even if those rates differ from previous terms.

Btw love your responses to the other others in my argument. And what other companies do you hate due to them wanting to be profitable?

Yes, I drive a Lexus because it costs more to produce then a Chevy. Does Lexus profit greatly on their products? Probably, but I am willing to pay the premium for a better ride and luxury.

Come on people.
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Jarahawk

Jul 31, 2012, 2:41 PM
Actually. You drive a Toyota. Congrats!
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60dollarcarcharger

Jul 31, 2012, 4:57 PM
Laughing

That was funny!
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epik

Aug 1, 2012, 12:51 AM
You might not have to buy it from them directly, but you can't avoid the fact that they still have to be Verizon approved. This eliminates the ability to buy a generic phone, or a competing carrier's phone entirely. I can't go to Samsung and buy an unbranded phone and expect to use it on Verizon.

Incidentally, I can buy gas for a Lexus or a Chevy from practically every gas station in town, but I can't buy a phone and expect to hook it up to just any carrier.
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Victek

Aug 1, 2012, 8:49 AM
crazyeaglefan236 said:

Now they are discounting a $650 phone to $200. Do the math...they are treating customers now better then ever before.


I agree - let's do the math and make the system honest. The phone costs X, the service costs Y. Pay 100% of X and then pay Y every month. If you want to spread the cost of the phone over time then you sign a contract and pay a percentage along with the cost of service every month. That's how it should work, but it doesn't. These costs are not discrete. The cost of service is the same whether I take the subsidy or pay full retail for the phone. To put it another way if I pay full retail for the phone I'm paying for it twice. I don't consider that being treate...
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Jarahawk

Aug 1, 2012, 11:34 PM
I've been waiting all day for his reply.
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truthinsuffering

Aug 2, 2012, 8:51 PM
Most carriers these days charge an upgrade fee when you get a new phone, AT&T used to charge a $18.00 upgrade fee whenever you got a new phone, now it changed to $36.00.
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jmdavis333

Aug 7, 2012, 8:19 AM
Ok so you're gonna buy a $350 phone, probably pay upwards of $120 a month for service just for the one phone, but you're complaining about a one time $30 fee that most likely if you complained enough, the manager would probably waive it. You sir are why this country is in the shape it is.
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fiercemouse

Aug 7, 2012, 9:24 AM
You mean toddraderman is Obama?
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jmdavis333

Aug 25, 2012, 7:40 PM
As in most people wanting something for nothing.

And on a political note you are giving one man WAY to much credit if you think it was just him that got us here in just 3 years. We all stand on the backs of our forefathers.
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