The world's largest Pay TV providers and the number two wireless carrier in the U.S. is following in Verizon's footsteps. AT&T now charges $20 activation and upgrade fees for phones, and $45 if those activations are for two-year contracts.
AT&T's new activation fees come just two days after Verizon began charging its customer $20 to activate new and old handsets on its network. For upgrades and activations on AT&T Next, the price is $20 per phone added or upgraded. For bring-your-own-device agreements and installment plans, the price is $20 as well.
For those signing up for two years of service with AT&T, the company will charge them an extra special $45 activation fee per smartphone.
The one-time fees are typically added to the customer's first or next bill, though customers who pay for back-ordered devices may have to be billed for the fee before they receive their handsets.
On Monday, April 4, Verizon confirmed its new activation fees after the details were leaked a few days earlier. Verizon asserted that its upgrade fee is meant to help to cover "increased support costs associated with customers switching devices," a Verizon spokesperson stated.
"Customers can pay the charge when they upgrade, bill it to their account or trade in an old device to offset the cost," the spokesperson added. "The fee for upgrading on device payment is still half of the two-year contract upgrade fee."
While AT&T looks to be following Verizon's lead, its new fees are a bit more hefty than its rival.
Verizon is charging $40 per phone for two-year contracts while AT&T has set its fee for two-year agreements at $45. And Verizon isn't charging its customers for bringing their own devices, but AT&T is charging a one-time fee of $20 for the privilege of using customer provided equipment on its network.
AT&T's latest move with its wireless service is sure to peeve, pique and displease many of its customers, especially considering its new fees follow Verizon's lead. But on the the Internet side of things, AT&T is offering unlimited data for free to customers who show their loyalty by subscribing to pay TV and Internet service – hey, it's a bright spot.
