Verizon Is Bringing Back Its Widely Hated Activation Fee, But For A Cheaper $20

Verizon Wireless

Verizon has decided to bring back its activation fee — this time at a $20 price point.

The $20 fee is charged to customers who want to add a new line to their already existing cellular plan. The fee is a one-time charge that is paid only at the time of line activation.

The new $20 fee applies only to customers who sign up for Verizon’s new contract-free plans.

When Verizon debuted the new plans in August the country’s largest mobile provide failed to mention the $20 activation fee.

Verizon is no longer offering two-year contracts to new customers. Prior to the new plans the company charged a $40 activation fee for a variety of plans.

Customers grandfathered into Verizon’s old two-year contracts will still have to pay the $40 activation fee when adding a new line of service.

Verizon claims they need to charge the fee to cover costs such as communicating with the telephone registry service that your SIM card should be associated with your phone number.

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Analysts say Verizon will likely earn $189 million in additional revenue next year from the new activation fee, adding $122 million in profit.

AT&T, Verizon, and Sprint all charge similar activation fees.

Written by Peter Mondrose

Peter Mondrose

Peter Mondrose is the Editor-In-Chief at BusinessPundit. He received his degree in Economics in 1998 and a second degree in Journalism in 2004. He has served as a financial adviser, market trader, and freelance journalist for the last 11 years. When he's not investigating market conditions and reporting on workplace news, he can be found traveling with his wife, dog, and laptop. He can be reached at PeterMondrose@BusinessPundit.com or (929) 265-0240.