I have been with t-mobile for years, and I have been going month to month since my contract ran out a little bit ago. I wanted to switch to their new plans which work out better for me. This is what I got from their customer service:
_Toni E: If a customer that is no longer under contract wants to sign up for the new rate plans with no contract, there is a $35.00 activation fee.
Schlotzky5: what does the 35.00 activation fee go towards if I am already a tmobile customer?
_Toni E: It goes to making the change to the new no contract plan while being able to change your features. In other words, most of the new plans require a contract. This one does not.
Schlotzky5: ok
_Toni E: This gives you the freedom to keep the account open to no early termination fees if you ever have to leave us, and we hope that never has to happen!
I think its a recursive fee, meaning the only reason they have it is because they need tech support people to answer the question of why they have it.