Verizon Joins AT&T in Raising Wireless Prices as Inflation Continues

For the first time in two years, Verizon Communications Inc. will raise prices on its wireless bills as the company struggles with higher costs.

The largest US wireless carrier started notifying customers Monday and has been contacting some of its larger corporate clients in recent days to tell them of the coming increases.

Millions of customers will see a $1.35 increase in administrative charges for each voice line they have starting with next month’s bill.

Business customers will see a new “economic adjustment charge” beginning June 16, with mobile phone data plans increasing by $2.20 a month and basic service plans going up by 98 cents, according to Verizon representatives.

It was earlier this month that rival AT&T Inc. raised its rates on older consumer plans by $6 on single lines and $12 for families in order to catch up with rising costs and higher wages.

Labor Department data last week signaled that elevated consumer inflation could persist for longer than expected.

“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,” Tami Erwin, head of Verizon Business, said in an interview last week.

Verizon is trying to balance higher prices with better service, like switching customers from outdated plans to new 5G offers, Erwin said.

There are no fixed-rate plans for businesses like there are for consumers so each new corporate contract is a fresh chance at raising charges. Verizon will be able to negotiate higher prices into new service plans when the previous ones expire, Erwin said.

It’s a “raise-your-prices-while-you-can” moment, said Harold Feld, senior vice president of the Washington-based policy group Public Knowledge, before the Verizon news.
Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.