Verizon Wireless to charge for phone upgrades

Apr 11, 2012 By PETER SVENSSON , AP Technology Writer

Verizon Wireless, the country's largest cellphone company, says it will start charging $30 every time a subscriber wants to upgrade to a new phone.

Other phone companies have introduced similar fees. AT&T Inc. raised its fee from $18 to $36 this year.

Verizon says it will start charging the fee on April 22, and it will help fund customer support and online educational tools.

Verizon is introducing the fee as companies are seeing their profits cut by the cost of subsidizing smartphones, especially iPhones. Smartphones generally cost hundreds of dollars more than they sell for in stores. Wireless carriers count on making the money back through service fees over time, but those fees aren't growing as fast as smartphone sales.

Explore further: Scientists twist radio beams to send data: Transmissions reach speeds of 32 gigabits per second

1 /5 (1 vote)
add to favorites email to friend print save as pdf

Related Stories

Verizon reverses on $2 fee for one-time payments

Dec 30, 2011

(AP) -- After a customer backlash, Verizon Wireless on Friday dropped a plan to start charging $2 for every payment subscribers make over the phone or online with their credit or debit cards.

AT&T to raise fees for iPhone contract breakers

May 21, 2010

(AP) -- AT&T Inc. is raising the fees it charges buyers of the iPhone and other smart phones if they break their two-year contracts, while lowering them for "dumb" phones to better align the fees with their real costs.

FCC asks Verizon Wireless to explain fees

Dec 04, 2009

(AP) -- The Federal Communications Commission on Friday asked Verizon Wireless why it recently doubled the fees it charges customers when they break their contracts on "smart" phones.

FCC seeking information about wireless fees

Jan 26, 2010

(AP) -- Federal regulators are asking the nation's big wireless companies whether they give customers adequate notice about early termination fees for breaking a service contract before it expires.

Recommended for you

Cutting congestion on the data network highway

Sep 12, 2014

Perhaps no other consumer-driven technology has made such incredible advances in such a relatively short space of time as the mobile phone. Today's smartphones are used to stream videos, access social media ...

T-Mobile to sell phones that call, text on Wi-Fi (Update)

Sep 10, 2014

T-Mobile will sell more than 100 smartphone models with a built-in feature that taps into Wi-Fi networks to make phone calls and send texts when customers can't connect to the wireless carrier's cellular network.

User comments : 2

Adjust slider to filter visible comments by rank

Display comments: newest first

Mauricio
1 / 5 (1) Apr 11, 2012
"it will help fund customer support and online educational tools." Really? sounds like the usual greed....
Yevgen
not rated yet Apr 11, 2012
The result will be that customers will keep switching to a different provider any time when they want a new phone, those saving this fee while creating a tremendous expenses to the industry as a whole. Guess what it takes in labor etc to sign up a new customer? Hint - way more then $30.