[DarkSorrow]

On April 22, Verizon Wireless is implementing a $30 upgrade fee for existing customers purchasing new mobile equipment at a discounted price with a two-year contract. This fee will help us continue to provide customers with the level of service and support they have come to expect which includes Wireless Workshops, online educational tools, and consultations with experts who provide advice and guidance on devices that are more sophisticated than ever.

While the upgrade fee is not unique to Verizon Wireless, most devices can be traded in with our green friendly trade-in program at as a way to save money or potentially offset the fee completely.

Source

[Super_Mario]

I hope this means cheaper phones.

[taylorz_412]

Upgrade fee is BS when paying 299 for a freaking phone on contract

[lmc05]

I hope this means cheaper phones.

I wouldn't get your hopes up.

[cyberdalek]

I think that they need to charge the people who use the workshops and how to resources not people like us who teach the customer service representatives something every time we call.

[ShaggyKids]

I think that they need to charge the people who use the workshops and how to resources not people like us who teach the customer service representatives something every time we call.

Absolutely!

Sent from my ADR6425LVW using Tapatalk 2

[Joe the Insider]

Get over it, other carriers have been charging these fees for awhile. At least Verizon uses the money to good use. Let's talk about their 4G network compared to the competition. There is no competition.

[Joe the Insider]

And just because you've dealt with reps that are not as knowledgeable as you doesn't mean all of Verizon reps are.

[winnersmw]

And just because you've dealt with reps that are not as knowledgeable as you doesn't mean all of Verizon reps are.

Of course not all of them, just the majority.

[Ry]

I think AT&T and Sprint charge $36, while T-Mobile charges $18. Verizon is just falling in line.

[Ry]

Of course not all of them, just the majority.

What's your sample size for this conclusion?

[Egz]

It made me sad to realize this is going into place one month before my renewal.

[Devinator]

Wow. A $30 fee so I can be a customer. Ridiculous. Is Verizon becoming a bank?

You'd think they'd at least bundle it into the phone cost so people don't notice it and get pissed.

[DaRkL3AD3R]

Hmmmm didn't see this...

Uh, yeah. Definitely P'd/O about this.

Gonna give it more time (since my next device is the GS3 I have to anyway) and see how this turns out.

[Synycalwon]

Check this out that explains in detail the reasons behind the fee (not that it makes a whole lot of sense):

A few excerpts:

"Smartphone subsidies forcing Verizon's hand

Saturation in the voice industry and the rise of data services has caused smartphones to increasingly figure into wireless carriers' plans. The lure of the high data ARPU generating smartphone customer has also led the wireless industry to heavily subsidize these smartphones in order to drive their sales. For example, a basic iPhone 4S model costs around $650 for the carriers who then subsidize it heavily to sell for $199."

"Verizon's latest move shows that the company is starting to feel the heat of its huge subsidies. This is an attempt to increase the upgrade cycle of smartphones so as to lessen the impact of subsidies."

[Devinator]

Check this out that explains in detail the reasons behind the fee (not that it makes a whole lot of sense):

A few excerpts:

"Smartphone subsidies forcing Verizon's hand

Saturation in the voice industry and the rise of data services has caused smartphones to increasingly figure into wireless carriers' plans. The lure of the high data ARPU generating smartphone customer has also led the wireless industry to heavily subsidize these smartphones in order to drive their sales. For example, a basic iPhone 4S model costs around $650 for the carriers who then subsidize it heavily to sell for $199."

"Verizon's latest move shows that the company is starting to feel the heat of its huge subsidies. This is an attempt to increase the upgrade cycle of smartphones so as to lessen the impact of subsidies."

If they are starting to feel the heat, then, just raise the price of your phones. Don't hit everyone with an arbitrary fee. Also, don't pretend the fee is for "Wireless Workshops, online educational tools, and consultations with experts who provide advice and guidance on devices that are more sophisticated than ever." Charge for those services if that's what it's for.

So, now there is no free phone option for people that don't really need their phone, probably barely use it, and, are a ton of profit for the phone companies. It just seems to make sense to charge everyone what they really need to charge you for each model of phone for it to be economically viable for them, not some bogus fee. Reminds me of them shrinking food packing sizes to keep price tags normalized. Just raise the price.

[Eclipse2K]

I don't use any of those resources because I am much more knowledgeable than any Verizon employee in my area when it comes to the devices I purchase. I will try my hardest to get that fee waived at the time of upgrade because of that reason alone.

Chase tried to pull this on me but luckily I was able to escape fees due to direct deposits. I only keep Chase because their seconds from my home and their Android application is useful. Once they start charging me to be a customer, I'm gone. Verizon may provide the beat phone service in my area, but the same rules apply. I don't mind paying for what I use but I am not paying for things I don't. That's like charging someone for premium gasoline even though they're using regular. Sure, my vehicle required premium but why should anyone else pay that fee? Is every company going the way of cable television?
Such silly nonsense!

Sent from my DROID RAZR using Tapatalk 2

[Devinator]

I don't use any of those resources because I am much more knowledgeable than any Verizon employee in my area when it comes to the devices I purchase. I will try my hardest to get that fee waived at the time of upgrade because of that reason alone.

Chase tried to pull this on me but luckily I was able to escape fees due to direct deposits. I only keep Chase because their seconds from my home and their Android application is useful. Once they start charging me to be a customer, I'm gone. Verizon may provide the beat phone service in my area, but the same rules apply. I don't mind paying for what I use but I am not paying for things I don't. That's like charging someone for premium gasoline even though they're using regular. Sure, my vehicle required premium but why should anyone else pay that fee? Is every company going the way of cable television?
Such silly nonsense!

Sent from my DROID RAZR using Tapatalk 2

Agreed, I'll be fighting the fee as well. Last time I was on the phone with Verizon, I ended up solving an issue after we did a factory reset to my phone (to prove I needed a replacement, which I already did and knew I would need a replacement and told them, haha), and, the rep was like, wow, I'll have to make a note of that and tell others. I should send Verizon a bill.

If you don't need a brick and mortar bank, Capital One's online banking is really good. They reimburse you other banks ATM fees and don't charge you one themselves. No fees for accounts, I don't even think you have to have direct deposit to avoid fees, but, you might. Probably some of the best interest rates available, not that it's much these days. Good customer service. I rarely get checks from people, and, don't ever go to the bank, so, this was the best option for me. Just a thought if you ever need to switch banks.

[scottguest11]

i think 150 amonth for 2 phones with data is more than enough plus the cost of the phones and the contract i mean come on all its going to do is hurt sells on new phones because people wont upgrade as fast at least i wont

[rocker22dallas]

Sprint charges $36 as activation fee for any phone, but they will waive it if you have a credit union (going to local credit union and putting $5 in a savings account for example)

Sent from my Galaxy S II epic 4g touch. 4.0.3 FC05 ICS

[PewterL31]

That's the point they don't want you to upgrade as fast so they take less of a hit.

Sent from my SAMSUNG-SGH-I727 using Tapatalk 2

[Devinator]

But each time you upgrade they lock you in for two more years. Which means they are billing you for close to two thousand dollars over that time period (only for service, not including what you actually pay for the phone). Even if they subsidize 500 bucks of that, that still leaves 750 bucks a year they are taking in from you. How much of that is profit, not sure, but, they are still making a good amount of money by making you lock in. I wouldn't say they are really taking a hit.

[Eclipse2K]

That's the point they don't want you to upgrade as fast so they take less of a hit.

Sent from my SAMSUNG-SGH-I727 using Tapatalk 2

Verizon once told me these phones cost $800+ to manufacturer. We all know these phones cost less than $200 to produce so I'm not even going to consider Verizon losing money.

Sent from my DROID RAZR using Tapatalk 2

[Fryguy128]

Verizon once told me these phones cost $800+ to manufacturer. We all know these phones cost less than $200 to produce so I'm not even going to consider Verizon losing money.

Sent from my DROID RAZR using Tapatalk 2

Even worse is they're more like under $100 to make.

[Issemann]

Wow. A $30 fee so I can be a customer. Ridiculous. Is Verizon becoming a bank?

Anyone know what the "activation fee" is for?