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3 On Your Side: Cell Phone Upgrade Fees
(CBS 3) PHILADELPHIA -- If you've looked at your cell phone bill recently, you probably noticed all kinds of charges, some of which, you wonder, what is this for?
Did you know the average cell phone bill includes nearly 17-percent in taxes and fees? However some customers are paying even more for being loyal to their carrier and 3 On Your Side's Jim Donovan explains.
On average, most folks get a new cell phone every two years, looking to upgrade to the latest technology.
Not only will you have to shell out cash for a new handset, you may not realize there could be an extra fee that could cost you up to a months worth of minutes.
Unlike an activation fee that's charged to all new customers, when it comes to an upgrade fee, it's loyal current customers that feel the pinch.
"These companies think you're not going to change, they've got you and it's a way to cover what they're going to say is the cost of processing and administering the change, it's just a way to get more money," said Sam Simon of the Telecommunications Research and Action Center.
For example, Cingular charges a flat 18-dollar upgrade fee.
Although, they'll waive the fee for former AT&T wireless customers upgrading to Cingular.
Sprint/Nextel also charges 18-dollars to upgrade if it's done online or over the phone.
But walk into Sprint/Nextel store, and the price doubles to 36-bucks.
Joanna Saracco recently upgraded her phone with Sprint and says she isn't sure if the sales person even told her about the fee.
"Now I have to check my bill and see and then I'll have to call them and say we've been customers a long time, I don't want to have to pay," said Saracco.
Verizon Wireless charges 20-dollars to upgrade, but will waive the fee if you're in the last month or two of a current contract.
"Certainly waiting is going to be an advantage to you because you won't have a processing fee and you still be able to have the latest technology," said Sheldon Jones of Verizon Wireless.
It seems only T-Mobile customers are completely off the hook, they don't charge you a cent.
So are these fees set in stone? 3 On Your Side wanted to find out.
Using a hidden camera, we went to a local Cingular store to see if we could get the fee waived, simply by asking.
"They do charge a one-time upgrade fee, $18, it comes on next month's bill," said a worker.
The manager said he didn't have the authority to waive our upgrade fee but he called customer service and within a few minutes, the fee was waived.
Cingular and Sprint/Nextel declined our request for an on-camera interview but said the upgrade fee is a way to recoup the costs of activating a new phone.
Sprint/Nextel says the fee is doubled at stores is because more administrative work is involved.
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