Honestly, that is the best explanation I have heard yet. Although, I don't agree with it based on a couple of factors:

1. Understanding a company works on profits, it is still BS to charge an existing customer more money to upgrade when they will always make a profit regardless. More so from the new phones then from older models. They give older models away for free (or nearly free on some) because they are almost obsolete and they profit from the contract/service.

2. With the phones we got on signing they have more than made their money back in the last year. With them knowing this they should give a better discount on the new phones we want just to keep customer satisfaction.

Again, thank you for explaining it in an understandable fashion. I am not saying we will not still get the new phones this weekend (between 2 different smart phones), I just wanted to have a better understanding why I am being treated like a sucker instead of a loyal customer. Although (assuming you are a Tmobile sales rep from another post you made recently), I did not see why there is an $18 upgrade fee on top of the retail price of a new phone.

Recently we changed our numbers to local (moved from out of state) and they graciously waived the $15 fee on one of the phones. But at the same time Tmobile to go and prepaid customers can change their number every six months for free. Contracted customers will be more loyal then those who can come and go as they please. Just an observation as to more charges unnecessarily.

I have finally found a provider that I am happy with concerning customer service, plans, features, and phone selection. However, I can't seem to get an answer as to why an existing customer has to pay ridiculous prices to upgrade their phone as well as an upgrade fee? New customers get the same phones significantly cheaper, so why should I have to wait two years to get the same discount (or close to it)?

Quite frankly, the phone I got for signing with T Mobile was free, and nothing short of being a piece of crap. I have been with them for a year now and, I am told, I get a discount rate, but to get the higher discount I have to be with them for two years. I am a gadget freak and I have waited long enough to get a new phone with more features. By getting a new phone I will obviously agree to a new two year term. But why should I have to pay well over $100 more than a new customer on top of paying an $18 upgrade fee? That is like penalizing existing customers for staying loyal.

Someone PLEASE help me to understand this capitalization.