What is an activation fee?

With installations being free with some fibre broadband deals, why is there a need for an activation fee and what is meant by this?

Activation fee’s are just a charge that is applied when your broadband service is made live by your supplier.

Effectively, behind the scenes, there are lots of charges that Openreach might charge to the ISP, or the ISP is just covering the costs of them having to create your profile, service and billing details and sending out your router etc and so charges a one-off fee to cover these costs.

It is then wrapped up in a “Activation Fee”.

I did not know that! Thanks for the help.