Verizon Wireless will start increasing the price for its wireless customers starting June. Customers have been alerted to the impending increase, the first of its kind in two years, and that the increase will apply to both consumer and business contracts.
according to this bloombergThe reason for the increase is that Verizon Wireless could reduce its rising costs due to inflation. Consumers should see a $1.35 increase in “administrative fee,” while business customers will have a new “economic adjustment fee” attached to their bill. The adjustment will come sometime in June for consumers and will go into effect on June 16 for business customers.
bloomberg states that there will also be a $2.20 increase in Verizon mobile data plans, as well as a 98 cents increase over basic service plans.
Each new corporate contract is a new opportunity to raise fees
Verizon Wireless isn’t shy about increasing its new prices, said Tammy Irwin, head of Verizon business, in a recent interview. “We are all feeling the pressure and we are in the process of deciding how much pressure we can share with our customers.” Irwin also said that “Each new corporate contract is a new opportunity to raise fees. Verizon will be able to negotiate higher prices in new service plans when the previous ones expire.” As for Verizon Wireless, it claims it’s trying to provide better service, touting the quality of its own 5G network.
Price increases are always tough for consumers but it seems to be a trend in the wireless industry. Just a few weeks ago, AT&T raised the prices of some of its older wireless plans. The increases were the first for the company in three years, although the company claimed they were necessary due to inflation. Of course, AT&T encouraged its customers to switch to the new plans, to lessen the impact of the new price hike.
Now, all eyes will be on T-Mobile, which has made a name for itself by doing the opposite of the norm. Only time will tell whether T-Mobile will commit to its past of being “un-carrier,” where it has vowed to keep pricing reasonable and simple.