I'd probably redact the phone number off the bill too.

what service plan costs only $9.99/month?

add a line... screw att... i mean come on...

A secondary line. RTF...B? =)

Phone number still on the bill FTW!

What the heck, I have a min. Let me see what this guy is up to...

HA. Verizon was the opposite. They gave me a month free to extend for an extra year.

"I am sorry, sir. You have spoken to a AT&T Customer Service Rep three times in the last month. We have to charge you a $19.99 fee. It's in your contract!"

Umm, this is a pretty standard charge... I first noticed it when I was with NEXTEL. and They actually charge $36 for the upgrade.

Example: I want to take advantage of the cheap phone and extend my contract. BAM $36

I want to just buy the phone at full retail, and not extend my contract. BAM NO CHARGE..

It must be all that paper work they have to do. hmmm...

Sometimes they charge $36 for the privilege. They will generally remove the charge if you ask.

I still don't understand why people don't just buy an unlocked phone off eBay. I haven't been under contract with AT&T/Cingular for years.

@Coder4Life:

It must be all that paper work they have to do. hmmm...

yeah. I work in cellphones. it's a standard charge, and actually it should be more. Other than not correctly setting expectations, I don't get what at&t did exactly, but I guess it's not a bad thing for the guy that he got out of paying it.

I shot myself in the foot recently upgrading to a new phone. I have ATT, I was out of contract when I decided to upgrade my old phone to a new one. ATT had a great deal but to get it, I had to also extend my non-existant contract for 2 years (a $150 savings off the phone for service I'd probably have anyway.) I had the phone 3 days, then it broke. I sent it back, got my refund, but now I have a 2 year contract and no new phone.

Contracts suck.

@ryan: That makes zero sense.

How does it cost AT&T money for this guy remain their customer for 2 more years?

Yeah, the "it's a standard charge" doesn't float with me either.

I have a "standard charge" of $29.95 for dealing with incompetent service techs. But do the companies that I have service with honor my "standard charge"? NO.

Somehow these cellphone companies think their time is worth more than mine.

Ugh I hate phone bills... A long series of charges that are not explained!

@Asvetic:

...you do realize that you have 30 days to cancel the contract with no penalty, right? and that if you did it within the first three days that you wouldn't have to pay the activation/upgrade fee? please, tell me you know that. please.

@Rectilinear Propagation:

you have no idea what it costs at&t to setup new equipment on the backend, do you? it doesn't matter if it's an existing customer or not, it costs money to set it up, and that's why we have activation/upgrade fees.

In my opinion, I think this is a regular gimick that a lot of large corps. use, they put in random charges and most people never look at their bill and never protest. They refund the charges for the small minority of people who complain and they collect big money on the majority who do not.

I just "upgraded" recently too. Its a charge that you get any time you extend your contract, but before your current contract expires.

It helps them with the costs they would normally recoup with a $200 cancellation charge. If we didn't subsidize the cost of cell phones in the US, we would never have to deal with "upgrade" fees or "early termination fees."

Also, when I switched plans to add my husband to my plan with Cingular (now the new AT&T) they stole all my rollover minutes. When I scread bloody murder to the business account rep (I've also got a BlackBerry as part of the plan) they gave the minutes back (the regular customer reps told there wa nothing they could do).

It's not just some random fee. AT&T pays a comission to the person that sells you the phone, and to the store (if agent) you bought it from. This fee is to recoup part of that. Not saying I agree with it but it's not like it's arbirtary (like all the other fees on the bill). That's not to mention the upgrade fee would have been listed on the contract you signed. The rep may not have told you about it (which is shady) but it would have been on the contract, and in some cases a seperate peice of paper you sign.

@ryan:

you have no idea what it costs at&t to setup new equipment on the backend, do you?

It really doesn't matter - you signed up for a 2 year contract. I'm sure they can eat the cost of clicking a button or two in the billing system somewhere considering you have just agreed to pay $1000+ over the next 2 years.

This purely a "because we can" situation.

blah blah blah... the servers and software were payed for years ago, the only actual work represented by the ridiculous fee is a little typing by the CSR and some network traffic.

Cry me a river. These guys rape you for the cost of the service itself, don't try to justify a "handling" fee. It makes you look like a "yes" man.

One piece of advice with regards to the upgrade fee- indepedent cell retailers (at least with VZW), do not charge the upgrade fee. It's a give and take-you can get corporate "service" and their "deals" or take a chance on the little guy and save some pennies. Choose wisely.

@ryan: Uh shoulndt that be the cost of doing business. and the cost should not be passed on the customer. Especially since they havea monthly charge for cell usage.. hmm..

yup.... looks like a standard "lets see if they notice" charge to me - if they don't complain, then great. If they do complain, take it away. It's a win-win for the company... since most probable don't complain.

I'm planning to switch phones soon but I'm going to do it on my own with an unlocked phone, or at least the phone I want purchased outright through someone other than AT&T (say, ebay) if it's an AT&T exclusive (not sure yet if the maker will sell them outright; still waiting for the phones I want to be available, and more than one mfr. is catching my interest).

The great thing about GSM phones (AT&T/Cingular, T-mobile in the US) is that all you have to do to switch phones is to move your SIM card to your new phone, and if you'll be using data, set up the appropriate option on your account. You don't have to have them set up your new phone in any way, they don't need to know that you changed phones, and so you don't need to sign a new contract.

Although I am looking at the next model of iPhone, if it adds a few features I need, as another possibility, the idea of having to get a 2-year contract just to activate the damn thing even though I wouldn't be buying it from AT&T, means other phones are remaining high on the list even though I've always liked Apple's products (not a diehard zealot or anything, just a happy customer).

@ryan: Uhm, GSM/SIM cards mean you don't have to do any backend setup once the account is set up. On CDMA you might have an argument because the provider might actually have to do some work to authenticate/activate the phone.

I've done a phone swap for a family member before in under a minute on a GSM phone, no calling the provider required.

@ShortBus: it is redacted.

you have no idea what it costs at&t to setup new equipment on the backend, do you?

@ryan:

1) Is there any reason I should know? I'm not the one who said they used to work in the business.

2) Why are they setting up new equipment for an existing customer?

3) Do customers who run out their contract also get billed this charge? If not why?

4) Shouldn't the cost of upgrading equipment be built into the cost of the plans?

@Ryan said:
you have no idea what it costs at&t to setup new equipment on the backend, do you? it doesn't matter if it's an existing customer or not, it costs money to set it up, and that's why we have activation/upgrade fees.

You're kidding right? If it's an existing customer, what else is there to do on the backend? All the billing info is in the system already. And since it's an AT&T branded phone, it should work right out of the box. Remove SIM from old phone, then insert SIM into new phone. Turn phone on. Seems to work for me and all the other people who have purchased unlocked or AT&T branded phones from ebay.

So can you elaborate on what needs to be set up on the backend for existing customers?

AT&T has a penchant for adding "unknown" or otherwise previously undisclosed charges left and right (e.g.: Roadside Assist? I sure as hell did not ask for that and the sale rep didn't even mention that to me! Overcharging me on the activation fee? That's not what the sales rep told me on the recorded phone conversation!)

Goodness, when I transfered my (old) AT&T Wireless account for a Cingular Wireless account, I've been calling CS for about three billing cycles until I've got all incorrect charges adjusted, rescinded or credited (one of the CS was nice enough to waive the activation fee when I opened a new line). After going through the experience, I think that Cingular CS is generally good, yet I wish I didn't have to go through those hassles in the first place.

Maybe Ryan could explain what, exactly, it costs a phone company when an existing customer renews a contract and gets a new phone?

Uh, this fee has been with them for as long as i can remember, before Cingular even took over. It has never been a secret, it is something you agree to over the phone and when you upgrade online, or instore. Don't seem shocked at this...It's not right, But it has been around a very long time. Now grow up and quit whining about crap like this, i bet half of you spend $4 a day on coffee at Starbucks, and a buck or two on soda.

Upgrade AdvantageSM Program Terms and Conditions: See Rate Plan Brochure, Terms and Conditions and Wireless Service Agreement for full terms applicable to selected rate plan. Customer eligibility may vary based on credit history, payment history, payment status, customer type and other factors. Two-year service agreement required. Upgrade fee, if not waived, of $18 applies. An early termination penalty of $175 applies if service is terminated before the end of the contract term. If phone is returned within 3 days, upgrade fee, if applicable will be refunded. If phone is returned within 30 days in like-new condition with all components, early termination fee will be waived. Not all phones qualify for additional discount. Rate plan charge includes monthly charge and does not include usage charges. Data package charge includes monthly charge and does not include usage charges. Rate plan and data package charges are calculated based on the three (3) previous completed billing cycles. FamilyTalk® secondary lines do not qualify for the additional discounts. Any Mail-in Rebate or other discounts will reduce the additional discounts applied.
Additional discounts will not bring the price of equipment below $0. All other charges apply. Some dealers impose additional fees. © 2007 AT&T Knowledge Ventures. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Knowledge Ventures.

[www.wireless.att.com]

Wow, you are a real tool, POISON7FL.

@poison7fl: Can you quit the Ad Hominem attacks?

Cellphone companies add charges for doing nothing. It's not right, it's just that there's no other game in town. Your choices are "pay unfair imaginary fees" or "don't have a cellphone."

I have had charges leveed and contracts extended that I've never agreed to. It's a common practice that sucks so hard that even a $4 Caramel Macchiato doesn't make it better.

@Buran: It wasn't before.

I wonder how much AT&T pays the shills it has as consumerist commenters?

I wonder how many corporate shills there are on consumerist overall?

@noasalira: I'm actually more scared by the idea that these people are not affiliated with any company and just people who believe we all need to obey the wishes of our good-hearted corporate overlords.

You have to agree to the upgrade fee for the phone to work after you upgrade. Its part of the ToS...

True

I asked them if they'd waive the fee on two occasions when we wwanted to upgrade to higher cost plan and add second line two CSRs and two rude No-s.

So we jumped to T-mobile who bent over backwards to gives us what we wanted. Even matched the best offer I could find for phones online and still have us 1-year contract.

Meanwhile AT&T keeps sending us letters asking if we'd reconsider joining ha!

face it people: cell phones and the accompanying fees are CASH COWS for these companies. they correctly think that they got you. because most people view cell phones as necessities now adays.

I love how all of these companies just pass along their expenses along to the customer. It used to be that customers would pay a flat rate and then all of the expenses would have to come out of the income. Now, you have to pay a flat rate and all of the other associated fees and nonsense for the joy of using a company's service. It is ridiculous.

this is seriously ridiculous.

Would someone like to explain what you're supposed to be upgrading when you extend your contract?

When he called AT&T, they told him it was the standard contract extension charge.

Then why isn't it called "Contract Extension Charge"? What about extending the contract is an upgrade?

I got a new phone in an attempt to get better reception in my dorm room. It didn't help, so I returned it 2 days later. We got the bill with an 18.00 upgrade fee even though I didn't keep the upgrade. They finally reversed the fee. The bad thing is, everyone I talked to at ATT said it would be a FREE upgrade. It doesnt cost anything unless your phone isnt free after rebates. Why is this 18.00 upgrade fee appearing out of nowhere? I've been disappointed with att that I've switched to another provider with 4 months left on my att contract. Its worth it to have the new provider because I can actually make phone calls in my room without having to go outside where it is freezing every night.

What drives people crazy is this cafeteria pricing! Just give me a phone and a contract for a couple of years and roll whatever profit you want into it. That way I can make an intelligent choice.

How is it good for me to have to pay $18 or more than I thought I would for my purchasing decision?

He needs to get over it, everyone on AT&T pays this fee. It you don't get a new phone, they don't make you pay it. It is a PHONE UPGRADE fee, not a fee from contract renewal. Consumerist, do some research, stuff like this keeps getting through. Posts about stuff people agree to pay and then get mad about it.

@aggie_brad: Bullshit fees, regardless of user consent, are something Consumerist should rightly rail against. Just b/c you agreed to it doesn't mean you relinquish your right to complain about it in the hopes that the company stops.