Winterfang
New member
Typically, when you first sign up with a carrier (subsidized/unsubsidized phones) you're charged an activation fee. Then, after your contract is over, when you decide to upgrade to another subsidized phone you're charged an upgrade fee. Basically, its the same as the activation fee.
As palandri has pointed out though, activating a new SIM card with your new phone (unsubsidized, no contract), will cost you an activation fee.
So that's what an upgrade meant. I though that At&t gave you an option to get a cheap phone once a year despite the 2 year agreement. Basically it just means re-activation.