Why do cell phone carriers charger an activation fee when you upgrade to a newer cell phone that has a sim card?
It’s true that cellular companies will often charge a $35 fee when processing a simple hardware upgrade, although it should not be identified as an “activation fee”. These two fees are often mistaken for one another since the amount is the same, however the $35 administration fee collected when processing a hardware upgrade is done to offset the cost for fees paid to a dealer during an upgrade transaction. It may seem like a simple process since, as you say, the SIM card can simply be transferred from one phone to the other, however the dealer is still paid by the wireless provider for their time to answer hardware & billing questions when processing upgrades, and for having to restock their inventory. Sources: Based on personal experience working for wireless provider for past seven years.