You just signed up for a new cell phone and got hit with a surprise “activation” charge. You're probably wondering what this fee is and why it costs so much. In this article, I'll explain what an activation fee is and how to avoid them.
What Is An Activation Fee?
An activation fee is a one-time fee that wireless carriers make you pay when you set up a new account. The fee is intended to compensate for a company's expenses associated with setting up the account. Activation fees from wireless carriers typically range from $20–60, but you can often get them waived when you sign up for a cell phone plan online.
Wireless Carrier Activation Fees
| Carrier Name | Activation Fee | Online Discount (Yes/No) |
|---|---|---|
| Verizon | $40 | Yes |
| AT&T | $30 | No |
| T-Mobile | None | No |
| Boost Mobile | $10 (used phones only) | No |
| Consumer Cellular | None | No |
| CREDO Mobile | $36 | No |
| Cricket Wireless | $25 | Yes |
| FreedomPop | $9.99 | No |
| Metro By T-Mobile | $15 | No |
| Mint Mobile | None | No |
| Net10 Wireless | None | No |
| Google Fi | None | No |
| Republic Wireless | None | No |
| Straight Talk | None | No |
| Tello Mobile | None | No |
| Ting Mobile | None | No |
| Tracfone | None | No |
| US Cellular | $20 (device dependent) | No |
| US Mobile | None | No |
What Am I Actually Paying For?
You're paying for your carrier to take a few minutes to activate your phone on their network. These networks do have a limited capacity, but the fee is really just another way for carriers to pad their profit margins.
Activation Fees, Explained
Now you know a more about activation fees, what they do, and how to avoid them. The rest is up to you to determine which plan fits best. Thanks for reading! If you still have questions, please leave them in the comments below.
