T-Mobile and their "upgrade fee" after renewing contract

As a customer being with T-Mobile for more than 6 years, I decided to upgrade my phone and extend my contract. When I got my next phone bill, I found I was charged an $18 "upgrade fee". When I called, the representative told me that T-Mobile charges this now because all other competitors charge it, and it helps offset operational costs, etc. etc.

So in essence, I extend my contract, and get hit with an $18 fee because of it. C'mon T-Mobile what's deal???