Verizon plans to raise prices for some customers starting next month, becoming the latest carrier to adjust its pricing in response to rising economic costs.
The wireless carrier company began alerting customers this week of the coming price hike, its first in nearly two years, according to Bloomberg. Some of the company’s “larger corporate clients” can also expect a higher phone bill.
“From time to time, we review and make adjustments to fees to defray some of Verizon’s administrative and telco expenses and costs of complying with regulatory requirements,” a Verizon spokesperson told McClatchy News in an email.
So starting in June, wireless customers will be charged an additional $1.35 in administrative fees for each voice line, according to Verizon. Administrative charges will total $3.30 per line, each month.
Business customers will also see a new “Economic Adjustment Charge” on their bills starting June 16, the company said. Smartphone data plans are going up $2.20 per line while basic phone lines and tablets will increase .98 cents.
“We work every day to maintain competitive prices for our business customers — often by absorbing increases that we incur,” the Verizon spokesperson said. “The current economic conditions impacting businesses worldwide continue to mount and despite our best efforts to mitigate further impact, we intend to offset a portion of these costs by implementing an Economic Adjustment Charge.”
The company saw a 12.4% dip in net income during its first fiscal quarter in 2022, despite a 2% jump in total revenue, The Verge reported, citing a company earnings call.
Other companies are also passing the cost of inflation onto their customers. Rival AT&T raised the price on some single-line plans by $6 and $12 on family plans earlier this month, according to Bloomberg.
And in February, coffee giant Starbucks announced another round of price increases to offset pandemic-related costs and worker shortages, McClatchy News reported. Shoppers are also paying more at the grocery store but may not know it thanks to a phenomenon known as “shrinkflation,” when manufacturers shrink the contents of a product’s packaging but keep the price the same.