Why an activation fee?

Question

Does anyone think like me(except employees of cell phone companies) that charging an activation fee is just another way of gouging the public?

Answer 1

Well, I do work for a cellular company and think about it. If someone walked into your store and purchased a phone. Now, you will not have to pay for the first months bill until the end of the month or at least 20 days out, but your company still has to pay the employee to sell the phone and the IT folks to maintain the computer system that the phone is activated in as well as the tower folks that turn on the service for you when it is activated. This entire process just to activate the phone cost the cellular company on average over $1000. Yet the average cost to the customer is $36. The company is not trying to gouge anyone, only trying to be paid for their services so they can continue to provide the service to the millions of custoemrs they have. Most folks say that the company makes so much money from their service that they do not need to charge these extra fees, but my company alone puts over 7 billion dollars a year into their network. That is over 60% of the overall income for the company going back to the custoemr will increased availabilty to services. That is what these companies are about, bringing in customers and giving them great service they can count on. If you walk into work and your employer asks you to log in to your computer before clocking in for the day, that could cost you hundreds of dollars per year in missed wages and it is illegal in most states to ask employees to do that. As an employee, you want to be paid for ALL the work that you do, so does the cellular company.

Answer 2

Activation fees are another way of getting more money from you without just raising your bill up every month.

Answer 3

yes, I totally agreed with you!

An activation fees shall not be charged to the subscriber because we are paying the airtime and continuing using their service which cost money!..