dslreports logo
site
spacer

spacer
 
    All Forums Hot Topics Gallery
spc

spacer




how-to block ads


view:
topics flat nest 
Comments on news posted 2014-06-12 16:17:43: Apparently, AT&T's willingness to respond to T-Mobile's "uncarrier" brand strategy only goes so far. In a very traditional carrier move, AT&T has jacked up the activation fee for wireless users on two-year contracts $4, from $36 to $40. ..

page: 1 · 2 · next


fiosultimate

join:2014-06-09
San Antonio, TX
Reviews:
·Verizon FiOS

2 recommendations

model

New price model, new rules, just like pots prices go up the less customers they have, wireless contracts cell phone customers are becoming the new dodo bird, please tell the last wireless contract customer cell phone with their unlimited 3g data to turn the light off when he leaves



JakCrow

join:2001-12-06
Palo Alto, CA

3 recommendations

There's not even a point of an activation fee

It doesn't cost $40 to activate service. Then again, this is "The Phone Company"(tm).


AVonGauss
Premium
join:2007-11-01
Boynton Beach, FL

3 recommendations

... it didn't cost $36 to activate service before either.



fiosultimate

join:2014-06-09
San Antonio, TX
reply to JakCrow

So?it doesnt cost 600 dollars to manufacture an iphone5s it cost about 200 but people still go to the apple store and pay that much, whatever the market will put up with, and att has been around for a while, so they must be doing something right


Zoder

join:2002-04-16
Miami, FL

Except most people don't pay the full price. They pay the contract price.

So the cost is obscured and phone prices are inflated much higher than they would be if they were sold like any other consumer electronics product.



morbo
Complete Your Transaction

join:2002-01-22
00000
Reviews:
·Charter

1 recommendation

reply to fiosultimate

said by fiosultimate:

att has been around for a while, so they must be doing something right

Former monopoly and current duopoly = doing something right?

Zoder

join:2002-04-16
Miami, FL

1 recommendation

Let's start a pool

How long before Verizon raises their activation fee $4?



Edrick
I aspire to tell the story of a lifetime
Premium
join:2004-09-11
Woburn, MA
reply to fiosultimate

Re: There's not even a point of an activation fee

Uhh two completely different things, one is a virtual service that is more or less done automatically via a computer system which we pay into monthly as our cell phone cost and another is a physical device which part out cost has no effect on retail cost as there's R&D, Marketing, Prototyping and other aspects that go into it and it's not a service we pay monthly into.


AVonGauss
Premium
join:2007-11-01
Boynton Beach, FL
reply to fiosultimate

That's a bad comparison, one is a physical product while the original discussion is about a service fee for a service, you know, that keeps the service making money...



fiosultimate

join:2014-06-09
San Antonio, TX

Att needs to keep building for example and mainting physical cell phone towers for cell phone service to work with them, apples and oranges are still fruits



IPPlanMan
Holy Cable Modem Batman

join:2000-09-20
Washington, DC
kudos:1

Whatever AT&T

Guess they want us to believe the costs of barcode scans have gone up.



tshirt
Premium,MVM
join:2004-07-11
Snohomish, WA
kudos:4
Reviews:
·Comcast

said by IPPlanMan:

Guess they want us to believe the costs of barcode scans have gone up.

Just because they make what you see happen "as simple as waving a magic wand" doesn't mean there are lots of processes and expense to reach that level of automation.

gutch

join:2003-01-16
Tamaqua, PA

oh well

Take note AT&T I just dropped my subscription to paid TV because of the increases over the years. I will not hesitate to drop my cell phone either.



IPPlanMan
Holy Cable Modem Batman

join:2000-09-20
Washington, DC
kudos:1
reply to tshirt

Re: Whatever AT&T

Ahhh... I see. So it's a slush fund for all that.

This doesn't spin very well.



Anno

@68.62.236.x

Shouldn't be legal.

Should be illegal just like the additional TV "fees".

If I am upgrading my phone the phone should cost $40 more then, not some below the line hidden fee. Deceptive advertisement yet again for America. "fees" should flat out be illegal, anything beyond "taxes" is the cost of doing business and should be required to be part of the product or service.

And how can you say it's the cost of doing business for activations and you must raise it? You've said that every time it's went up from the old days $18 or less. The process of these upgrades/activations has actually gotten so much more automated and efficient that you are making plenty. Never mind the people doing it online with 0 human interaction is involved. But wait, what about someone who made that system, they have to pay for that? Well yea, your monthly service covers all that already too...

And I really love all the fools falling for this "uncarrier/no-contract stuff". Guess what? You still have a contract. That new phone, you have 24 month contract on the phone. Cancel your plan or switch providers and payment in full is due right away.

How is this any different vs. paying and getting discounted phone with a 2 year agreement? Cancel and you pay an pro-rated ETF (aka phone balance you would pay otherwise). 24 month payment = 2 year contract. And it aint no cheaper. Is your phone plan really $24+ a month cheaper for going with no contract to make up for the $24 a month you must pay for a phone now on top of your plan cost? In some cases buying the phone in full from manufacture its cheaper but how many people have money to front like that?

They are pushing the no contract stuff more because A) they get to make more money charging MSRP or above on a product they don't pay MSRP for and B) they still have you in a legal contract just the same. Just instead of it being a contract for service, it's a contract for hardware.

Oh and for those of you wondering, don't pay and try to switch and get your phone blacklisted. Remember, the current push is for the blacklist database to be shared among all providers because lost/stolen phones. Soon they can hold your non-contract phone hostage even because you left ATT and decided to not pay your due right away balance on the phone, they blacklist, you have a brick, thus are still hostage lol.

It's all soo funny. Rate plans have not come done in price in any way, they continue to rise.

Example?

Sprint:

Old plan was $69.99 + $10 for "prem data" = $79.99
You could get a new phone for 199.99 with 2yr contract, after 2yrs no contract same price.

New plan:
$55 + $25 (data) =$80 (one cent more, no biggie right?)
wait, now you have to buy a phone for $24 /month too.
So $104 is your monthly cost, counting no tax or fees even. After 24 months, your plan price goes back to 80, but wait, that's still 1 cent more vs. the old even. hah

I don't know about you, I rather pay 199 up front and save 24 a month for 2 years after.
The monthly cost is the same regardless for the plan, technically 1 penny more. And in both cases you have 24 month agreement on something.

all the providers are doing this same trick/game and people are falling for it. Most people always get a new phone every 1-2 years, the tech just changes to fast for them not to want to, so all you are doing is giving more money away without seeing it.



Edrick
I aspire to tell the story of a lifetime
Premium
join:2004-09-11
Woburn, MA
reply to fiosultimate

Re: There's not even a point of an activation fee

Uhhh did you miss the part where we already pay them a monthly service fee that should cover these? Have you bothered looking at their profits?


brad152

join:2006-07-27
Phoenix, AZ
Reviews:
·CenturyLink
reply to tshirt

Re: Whatever AT&T

these "automated" costs are long paid for. I've done tech for both companies and trust me they're using the same activation system on the back end they've been using for 10+ years. Nothing is different except for the fact that they're really good at padding CEO raises and bonus with these bogus fees.


mist668

join:2011-02-15
Middleburg, PA

2 recommendations

Its about money

It costs only a few dollars to activate a customer. I do work for a carrier and I can tell you that a sim card costs about $2 and a credit verification check $3. The rest honestly goes to offset commission that is paid to the rep.



tshirt
Premium,MVM
join:2004-07-11
Snohomish, WA
kudos:4
Reviews:
·Comcast
reply to brad152

Re: Whatever AT&T

said by brad152:

these "automated" costs are long paid for.

So YOU are the accountant? Then you know they never give employees a raise, their fuel still costs $0.28 a gallon, vehicles last forever, computers from 1973 work just fine, and so on.
No doubt some of that money goes to the CEO too, but there are actual expenses too. or would you rather they claim the service is worth another $1 a month rather than charging the customers that keep activating new devices $4.
It's all one big leaky bucket, this is about which customers put in more to keep it full.


tshirt
Premium,MVM
join:2004-07-11
Snohomish, WA
kudos:4
Reviews:
·Comcast
reply to IPPlanMan

said by IPPlanMan:

So it's a slush fund for all that.

it might be, you aren't a customer anyway so what does it matter.

brad152

join:2006-07-27
Phoenix, AZ
Reviews:
·CenturyLink
reply to tshirt

The operating expenses would have to come out of the monthly revenue, especially considering they're pretty much no longer doing subsides on the phones.

You can be a sheep all you want, but with the amount of revenue that AT&T and Verizon see yearly, it's customer rape pure and simple.



IPPlanMan
Holy Cable Modem Batman

join:2000-09-20
Washington, DC
kudos:1
reply to tshirt

I am a customer... So there.

"What difference does it make anyway" (and it variants) is becoming a pretty popular phrase these days.



IPPlanMan
Holy Cable Modem Batman

join:2000-09-20
Washington, DC
kudos:1

1 edit
reply to tshirt

I see... so nothing AT&T does is actually designed to save me as a customer money. I get it now.

These "below the line charges" enable them to hit their marketing price points on the monthly plans.

$40? This is never going down. Never. A few more years, it'll be $50... and we'll hear the same excuses.


sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1
reply to Edrick

Re: There's not even a point of an activation fee

Yes because no other consumer electronics device has those same R&D and marketing costs, and that explains why only cell phones are sold at 200% margins relative to their BoM.

Not.



tshirt
Premium,MVM
join:2004-07-11
Snohomish, WA
kudos:4
Reviews:
·Comcast
reply to brad152

Re: Whatever AT&T

said by brad152:

You can be a sheep all you want, but with the amount of revenue that AT&T and Verizon see yearly, it's customer rape pure and simple.

I choose "pay as you go" and regulate costs by not using much.
I'm also will to walk away (other carrier or none at all)
so who's is the sheep?

Again this is not RAPE (a violent crime), it's a companies charging what the market will bear for a (apparently) highly desirable service. You can say "NO!" and walk away.


tshirt
Premium,MVM
join:2004-07-11
Snohomish, WA
kudos:4
Reviews:
·Comcast
reply to IPPlanMan

said by IPPlanMan:

I see... so nothing AT&T does is actually designed to save me as a customer money. I get it now.

+1

said by IPPlanMan:

These "below the line charges" enable them to hit their marketing price points on the monthly plans.

So being right there in DC you never bothered to complain directly to those that CAN change the laws that govern this?
Or were you not effective?
because I agree that un-named monthly fees should go on the ads and one time(or in this case "EACH TIME") fees should be clearly disclosed, and this seems to be loud and clear.


cahiatt
Premium
join:2001-03-21
Smyrna, GA
reply to fiosultimate

Re: model

I guess the leader of unfees forgot about their activation fee also. The $10 sim activation. It isn't $40 but it's still there.



IllIlIlllIll
EliteData
Premium
join:2003-07-06
Hampton Bays, NY
kudos:7

blame the shareholders

they want larger dividends.



Camelot One
Premium,MVM
join:2001-11-21
Greenwood, IN
kudos:2
reply to JakCrow

Re: There's not even a point of an activation fee

I've never understood the concept of charging a person an activation fee when signing a contract to continue being a customer for at least a year or two, but having no fee for someone to activate a month to month plan.



ilikeme
I live in a van down by the river.
Premium
join:2002-08-27
Sugar Land, TX
kudos:1
Reviews:
·Vonage
reply to JakCrow

»youtu.be/k9e3dTOJi0o?t=6s