Leaked memo shows new upgrade fees being added by Verizon next week

Leaked memo shows new upgrade fees being added by Verizon next week
According to a leaked screenshot sent to us by one of our loyal readers, Verizon has a number of new $20 upgrade fees that will take effect starting on April 4th. Among the changes, Big Red will now charge $20 when you upgrade your phone by purchasing a new one from Verizon at the full retail price. Currently, there is no fee tacked on to a phone that is fully paid for through the carrier.

The screenshot also shows that Verizon plans on adding a $20 upgrade fee for phones purchased using Verizon's Device Payment Plan. This is the monthly installment plan that allows you to pay over 24 months for a new phone. If you use that plan and decide to upgrade to a new phone after 12 months, you will now be socked with another $20 fee. And you'll be slipping Verizon a $20 if you upgrade your Verizon branded Apple iPhone using Apple's iPhone Upgrade Program. 

According to the screenshot (which seems to have been taken from a document meant for Verizon staff), the current $40 upgrade fee still applies to those on a two-year contract, and those who bring their own devices won't be charged a fee.  Considering that our source tells us that these new fees will start on April 4th, we should be receiving some confirmation from Verizon very soon.

If you're a Verizon customer and are planning to upgrade to a new handset, you might want to do it before April 4th when these new fees are expected to start.


Thanks for the tip!

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53 Comments

1. TheMan

Posts: 494; Member since: Sep 21, 2012

Only justification is additional profit. This effectively raises the price of telephones.

33. bambamboogy02

Posts: 838; Member since: Jun 23, 2012

All will follow.

36. QWERTYphone

Posts: 654; Member since: Sep 22, 2014

We all need to stand up to these carriers and stop allowing them to rape us.

2. Scott93274

Posts: 6033; Member since: Aug 06, 2013

Yeah, I'm glad I left Verizon. After two months on Fi I've saved $90.

29. sgtdisturbed47

Posts: 966; Member since: Feb 02, 2012

You would save that much if you're fine with only 2 phones to choose from and limited coverage. I only get 3G on Fi where I live.

38. Scott93274

Posts: 6033; Member since: Aug 06, 2013

Well I bought the Nexus 6P when I was on Verizon and had so much more to choose and I still think I got the best phone available. Also, I have solid 4G in my city so Fi works just fine for me.

47. sgtdisturbed47

Posts: 966; Member since: Feb 02, 2012

That's good that you had the phone already, would make the switch easier. If Fi had LTE here where I live, my wife and I would be on it in a heartbeat.

39. Larry_ThaGr81

Posts: 592; Member since: May 26, 2011

It's no surprise. Verizon always finding new ways to get more money out of their customers. I too left Verizon last year.

3. cybervlad81

Posts: 89; Member since: Apr 04, 2011

I think this is just the carriers trying to get out of the hardware business, thus the ESN change being $0. This allows them to cut employees in store faces as customer provided equipment does not have to be supported by them in any way. Then they can just sell service, which is where they make their money. Customer: My phone keeps losing service when I am at [insert locations]. Store Rep: Our systems show service is fine in those designated locations, you need to contact your phone manufacturer. F you, give us your money and have a nice day. :)

6. bfuller2006

Posts: 85; Member since: Oct 31, 2011

WHat do you mean getting out of the hardware business? They don't make the devices. Personally i always though devices should be purchased from the manufacturer not the carrier.

8. 14545

Posts: 1835; Member since: Nov 22, 2011

This I agree with, but with SIM cards and LTE, what exactly are they activating.

24. iphoneman37

Posts: 53; Member since: Jan 30, 2014

Couldn't say it better myself then if you check on there site they ask if you have credit when you look at phones page

4. 14545

Posts: 1835; Member since: Nov 22, 2011

Further reason to dump them as soon as possible.

5. tedkord

Posts: 17356; Member since: Jun 17, 2009

Scumbag company.

7. natypes

Posts: 1110; Member since: Feb 02, 2015

Jesus they're horrible. They PROFIT around $4 billion per quarter. All they care about is investors, not their customers.

16. Exynos.

Posts: 177; Member since: Mar 28, 2016

Most companies do that - all they care about is their shareholders and contractors. Nothing else matters.

42. MrElectrifyer

Posts: 3960; Member since: Oct 21, 2014

If that's the case, T-Mobile is hiding that greed very well, and I'd proudly support them if they were here in Canada.

32. tacarat

Posts: 854; Member since: Apr 22, 2013

And by investors, you pretty much mean the board of directors who can cash out.

9. TreyTreyTaylor

Posts: 728; Member since: Dec 21, 2010

Verizon is like school in the summer time...

10. bucky

Posts: 3784; Member since: Sep 30, 2009

So two years of gouging on contract isn't enough? In Canada they try to charge us the same $25 to renew or sign up as well. Phone and Internet companies are right up there with insurance companies-absolute crooks to the highest degree.

11. mmajeski06

Posts: 13; Member since: Sep 02, 2015

On the bright side this will only push more sales directly from the manufacturer. No $20 fee to bring the latest Nexus financed through Google or the iPhone 7 financed through Apple. Why pay a $20 upgrade fee + full price sales taxes on a phone you plane to upgrade again in another year? Oh, and if you ever decide to leave said carrier, they want the phone paid off before you can leave.

35. jroc74

Posts: 6023; Member since: Dec 30, 2010

Yup. I can see myself buying from Motorola, Samsung, off eBay, Amazon, etc.

40. trublackrose

Posts: 45; Member since: Apr 14, 2015

except that news letter says there is a 20$ upgrade fee if you Finance through apple. So.. Yeah.

12. palmguy

Posts: 982; Member since: Mar 22, 2011

T-Mobile is gonna have a field day with this info if it doesn't has similar fees.

18. joevsyou

Posts: 1091; Member since: Feb 28, 2015

sadly TM can't touch them, and probably be years before they become a true issue for them

25. Shauk

Posts: 33; Member since: Mar 29, 2016

Time is on their side, they're already pulling a million new activations per year and rising. seems like most the other "big 4" are actually just hemorrhaging users.

13. XDAdam

Posts: 276; Member since: Feb 03, 2016

Wait, so they want to add on a fee for buying the phone outright at full price? I wonder if BestBuy will do the same, or if that will negate the extra fee?

15. bambamboogy02

Posts: 838; Member since: Jun 23, 2012

Best buy tends to be higher priced for a full retail device, on new devices as much as $100 more than VZW.

19. Exynos.

Posts: 177; Member since: Mar 28, 2016

But it's still less of an inconvinience than 2-year contract. I prefer purchasing my device outright with no strings attached.

14. CreeDiddy

Posts: 2188; Member since: Nov 04, 2011

Just watch they will spread this over 24 month Edge agreement. I am starting to despise VZW. I have been a loyal customer since 2006. Getting raked with this $20 one-time fee along with the $20 monthly access fee is just ridiculous. This is plain and simple price gouging customers!!!!!!!!!!!

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