Verizon raising fees for upgrades and activations starting next week

Verizon raising fees for upgrades and activations starting next week

Big Red is ratcheting up the fees it charges to activate a new line, or when customers upgrade to a new phone. Starting on February 5th, the activation fee rises $5 from $35 to $40. The upgrade fee will go up $10 to $40. Verizon last raised that fee back in 2012, and says that it has been 10 years since it touched the activation fee.

As 2014 came to an end, Verizon remained the largest mobile carrier in the U.S. with 108.2 million retail connections. Verizon's wireless operations took in $23.4 billion in revenue during the October to December period last year. Fourth quarter operating income was down 11.7% to $5.5 billion. 

Verizon added nearly 2 million postpaid customers in the last quarter of the year. Sprint has focused on Verizon and AT&T customers by promising to cut their monthly bills in half if they switch. T-Mobile CEO John Legere, no doubt, will look at these fee hikes as a consumer "pain point" and will consider ways to build an Un-carrier incentive around it.

"These fees are not unique to Verizon and help offset costs associated with upgrades, activations, and other operational costs. Verizon Wireless is committed to the fees remaining competitive within the wireless industry."-David Samberg, Verizon spokesperson

Verizon customers can avoid the increased fees. All they have to is refrain from activating any new lines, or upgrading to a new phone. Source