• Increases are $1.35 for consumers, up to $2.20 for businesses
• Verizon joins AT&T, passing along inflationary pressure to customers
Verizon Communications Inc (NYSE: VZ) will raise the prices of its wireless subscription for the first time in two years, following the path of AT&T Inc (NYSE: T), as the US network carriers are grappling with higher costs.
Users will see a $1.35 hike in administrative charges for each voice line starting in their June phone bill, Bloomberg reported on Monday, citing Verizon representatives.
The report also said that business customers would see a new “economic adjustment charge” beginning June 16, with mobile phone data plans increasing by $2.20 a month and basic service plans rising by 98 cents.
New York City-based wireless service provider started notifying its user on Monday and has been contacting some of its larger corporate clients in recent days to inform them about the hike, according to Bloomberg.
Verizon shares jumped 1.7%, erasing an earlier decline and closed at $49.04.
“We’re all feeling the pressure, and we’ve been in the process of deciding how much of that pressure we can share with our clients,” Verizon Business head Tami Erwin said in an interview last week.
The company is trying to balance higher prices with better service, like switching customers from outdated plans to new 5G offers, Erwin said.
Earlier this month, rival wireless carrier AT&T raised its rates on older consumer plans by $6 on single lines and $12 for families to catch up with rising costs and higher wages.
Picture Credit: CNet
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