WhyMore$ wrote: I can change computers without being charged an activation fee for my internet, or TVs without being issued a new fee from my cable/satellite company, so why should I or anyone else be charged and extra fee just for changing a phone?

The cable/satellite company didn't buy the TV to resell to you.  Verizon has to buy the phones it sells to consumers.  And almost any company that resells merchandise (Office Depot, Best Buy, etc...) loses money on a sell and makes that up with attachments or in this case, upgrade fees.  I'm sure Verizon makes a small profit margin, but that margin is largely the upgrade fee.