AT&T raises phone activation fee another $5, now charges $25

AT&T has raised its non-contract phone activation and upgrade fee from $20 to $25, the latest increase for a fee that didn't even exist until July 2015. As the mobile carrier switched from contracts to device payment plans, AT&T initially did not charge an activation and upgrade fee for customers who brought their own phone or bought one from AT&T on an installment plan. But in July 2015, AT&T started charging a $15 activation fee to customers who don't sign two-year contracts. (AT&T also raised the activation/upgrade fee for contract customers from $40 to $45 in July 2015.)

The activation fee for non-contract customers was raised from $15 to $20 in April 2016 and was just raised again to $25. The $25 fee is charged for new activations or upgrades when customers purchase devices on installment agreements, AT&T says. Customers who bring their own phone to the network are charged the $25 fee when they activate a new line of service, but not when they upgrade phones on an existing line.