Internal documents have revealed that T-Mobile is set to introduce a wide-ranging new $35 activation fee later this month.
As The T-Mo Report reveals(Opens in a new window), T-Mobile intends to charge what it’s calling a “Device Connection Charge” (DCS) of $35 on most transactions. That includes new line activations, line upgrades, postpaid mobile, Beyond the Smartphone, and “broadband device types including BYOD, phones, tablets, laptops, smartwatches, hotspots, high-speed internet gateways, and other connected devices.”
Until now, T-Mobile has been applying a one-time “Assisted Support Charge,” which used to cost $20, but rose to $35 a year ago. However, it could be avoided by purchasing online rather than in a store. DCS replaces that fee on Nov. 15, as confirmed in a post on Reddit(Opens in a new window), and is being applied much more widely (including to online purchases). It should earn the company substantially more money from its 110 million subscribers, but remove one of the advantages it had over rival carriers.
By applying the fee to most transactions, T-Mobile is obviously removing the advantage of ordering online. Instead, more customers will probably opt to visit a store, get some advice, and walk out with their new device rather than waiting for it to be delivered. Either way, the $35 DCS fee will be payable.
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The internal documents advise T-Mobile employees to tell customers the charge is for connecting a new device or carrying out an upgrade. They are also meant to point out that this allows T-Mobile to keep customers “seamlessly connected to what you love.”
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