United States network provider Verizon Wireless recently announced that it is implementing a new $20 activation fee charged to customers when to they activate or add a new line to their service.
The new $20 activation fee will be implemented on new customers starting Nov. 15. According to CNN, the new $20 activation fee will be charged to Verizon customers who will apply for new contract-free plans.
Market analysts predict that the new activation fee will rake in $189 million in revenue for Verizon and in turn create $122 million in profit.
These new contract-free plans were announced in August, but not implemented promptly. Prior to its announcement in August, Verizon is charging its customers a $40 activation fee. Customers who are still under Verizon's two-year contract are still required to pay the activation fee when they add a new line to their service.
The announcement of the new activation fee came in just days after Verizon reported a third quarter revenue of $33.2 billion.
Verizon spokesperson Kelly Crummey told Fortune, "It covers the cost of turning a new line of service, things that have to happen to activate a new phone number."
Crummey added that the new $20 activation fee also applies to tablet devices even if such devices do not require cellular network in order to operate.
Verizon is not the only network provider that charges activation fee. AT&T charges $15 per new line, T-Mobile's SIM Starter Kit costs $15 while Sprint charges $36 for every new line. Starting in August, Verizon no longer offer two-year contracts to its customers.