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We can blame Apple for this one. With the other manufacturers Big Red had some leeway to adjust the prices so that they were not taking a bath on the subsidized prices of the handsets. So instead of "upgrade fees" they would adjust the price of the phone so they would make optimal money. With the iPhone Verizon has their hands tied because they cannot adjust the price a penny without the consent of Apple. Just as ATT had to add the "upgrade fee" because they were carrying the iphone, now all other carriers will have to do the same.
