Not sure what the 49.99 is for. If it is the activation fee that would be $40.00, and you would pay the price for the phone, if you continue the with a 2 year agreement. This fee is waved if you elect to go with AT&T next, which the phone would cost about $20.00 a month for about 30 months, but you can then upgrade in 12 to 18 months depending on what you selected.