Verizon users can expect to pay more for their plans beginning next month.
Verizon is one of the most reliable phone providers in the United States. Raking in thousands of customers a year, this mighty company has had steady popularity throughout the years. But with costs going up for most services in the US, Verizon is following suit. If this is your provider, you may experience a rise in your monthly phone bill.
Some cellphone providers have a tricky fee called an administrative fee that often flies under the radar for consumers. The administrative fee is usually minimal, costing customers between one and two dollars. But after a few months, the extra charge starts to add up. Verizon plans to increase its administrative fee from $1.35 to $3.30, doubling the prior amount. This fee will only apply to those with voice lines, so if you’re using Verizon for internet services with a laptop or tablet, you won’t experience the charge increase.
A spokesperson for Verizon, Adria Tomaszewski, spoke to The Verge about the fee escalation but didn’t explain the reasoning for the increase. They stated that the company “reviews and makes adjustments to fees” every so often based on the current climate. There wasn’t an exact indication of why Verizon has decided to double its administrative fee, but it’ll be enforced for customers starting next month.
The company also expects to raise prices in other areas for loyal consumers. An Economic Adjustment Change has also been added to the standard charges happening in the following months. This increase will reportedly occur on June 16th and affect all business accounts that use the provider. The cost will start at $2.20 per line and increase by 98 cents for each smartphone and data device. Though this may frustrate many businesses who needed multiple lines to connect their employees, Verizon had a more coherent reason for this specific upcharge. Verizon acknowledged the climbing costs for fuel, transportation, and general goods that have impacted businesses worldwide. Because of the available acceleration of most prices, the provider is transparent about its need to charge higher rates of business plans.
Verizon is not the only cellphone provider utilizing an administrative fee to swindle its customer base. AT&T is dealing with a class-action lawsuit by the state of California due to the trickiness of its administrative cost. The company tried to get the case thrown out, but the judge overruled that, stating how customers weren’t aware of the administrative fee’s upcharge on their cellphone bill. AT&T also hiked up prices for older plans, similarly to Verizon’s business plan increase. It’s no secret that companies are struggling during this precarious economic time, so price inflation is expected and, unfortunately, the new standard.
Despite Verizon having a relatively good sales year, the company reported that its net income was dropping. Last year, Verizon’s net income decreased by 12.4%, while its total revenue increased by 2.1%. This explains the cellphone provider’s insistence on raising prices for its business plans. With an increased administrative fee and phone plans, Verizon could change the trajectory of its net income. But by making services more expensive, it could permanently deter its loyal customer base.