Verizon Wireless to charge for phone upgrades

April 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.

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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.

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