A:Answer I am a Best Buy Mobile employee and my response to this would be that it's because the carrier sets this upgrade fee in place. Best Buy has nothing to do with upgrade fees, which is why customers don't pay for it at any of our stores and see it on their following statement. Since all carriers have moved their focus from 2 year contract to Installment Billing options for upgrading, the Upgrade fee, or Activation Fee as it's commonly referred to as, is lower than when you upgrade and do a 2 year contract. Hopefully that has helped you.