May 16, 2022 Last Updated 07:26 AM EDT

Tech

Verizon Brings Back $20 Activation Fee For Devices

Nov 17, 2015 03:58 AM EST

Verizon announces the resume of $20 activation fee whenever a customer adds a new line to their service. The fee would be a one-time charge and will not be charged again on future bills.

The resumed $20 activation fee will be charged from the customers who will sign up for Verizon's new contract-free plans. When Verizon introduced its new plans back in August, it certainly didn't include any activation fees then, according to Money CNN.

Verizon no more offers two-year contracts to new clients. Preceding August, Verizon had charged $40 activation fee for its different plans. Customers still tied into Verizon's old two-year contracts will even now have to pay the $40 activation fee whenever adding a new line of service, according to Verizon's representative Kelly Crummey. 

Crummey says that the activation fee pays the cost of a line activation, including "communicating with the telephone registry service that your SIM card should be associated with your phone number," as reported by Tech Times.

Nonetheless, one of the analysts assumes that charging the customers an extra $20 as an activation fee will profit the corporation a significant amount in the coming years of earning's report.  Colby Synesael, an analyst at Cowen & Co., assumes Verizon to add an extra $189 million in revenue $122 million as a profit from additional activation fee. Presently,  Verizon marked around $33 billion in revenue in the third quarter, with a 10% increase and $4.2 billion in
profits.

On the other hand, Verizon just announced the return of its activation fee when mobile careers are curiously increasing the costs of their services despite intensifying competition, as reported by CNET.

The activation fee resumed a few months after Verizon got rid of its smartphone subsidies and service contracts, prompting new customers to into installment plans. The device activation fee had been relinquished.  The $20 fee is half the amount of the activation fee for its now  two-year contract that no longer exists.

 AT&T, for example, charges around $45 to the customer who chose to sign up for two-year contract plans and $15 to the clients for its upcoming device payment plans. Sprint has set up $36 as an activation fee for newly signing up customers. T-Mobile has given its activation fee a fancy name, SIM starter kit and charges $15 for it.

Verizon is also scheduled to raise the cost of monthly unlimited data plans by $20 per month on Sunday. It will be the first day for the customers with these grandfathered plans, will be allowed to participate in Verizon's device installment plans.

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