Two weeks ago, AT&T announced that it would raise prices for many of its former subscribers starting in June. Now Verizon is following suit with its own round of price increases for home and business accounts. This is the first time Verizon has raised prices in two years.
Verizon price increases are coming
Verizon CEO Hans Vestberg first hinted at the possibility of raising prices in April, citing lingering inflation concerns. Vestberg refrained from saying that price increases were definitely coming, saying instead that the company had “plans to prepare for what it takes” including “various types of cost adjustments.” .
This is the first time Verizon has raised prices for these customers in two years. However, the company increased prices for grandfathered customers in older plans as recently as late 2021.
Verizon is taking a different approach to raising prices this time. The advertised price of Verizon’s actual plans will remain the same, but it will start adding a new “economic adjustment fee” to your bill each month.
The news was first reported by Bloomberg and Verizon has confirmed the changes through its representatives. According to the company, the “economic adjustment fee” will be $1.35 per phone line for consumers. For example, if you have 4 people on your family plan, that means your monthly cost will increase by around $5.50.
Note that the increase only applies to voice lines per account. For example, if you have four voice lines and two data-only iPad lines on your account, your raise will only be based on the four voice lines.
Business customers will see a bigger increase each month, with data plans increasing by $2.20 per month and “basic service plans” increasing by $0.98 per month.
Verizon says these price increases will take effect from customer invoices sent out in June. The increase in business accounts will begin on June 16. Verizon began notifying consumers of this new “economic adjustment fee” today, while it has also been in direct contact with “some of its largest enterprise customers” recently.
The changes follow price hikes on some AT&T plans last month, though AT&T notably excluded its new unlimited plans from the price changes. Verizon’s “Economic Adjustment Fee” applies to all plans.
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