Verizon raises fees for wireless service, adds new charge for businesses
The telecommunications giant's moves come as inflation continues to run near a 40-year high.
Some Verizon customers will be in for a surprise when they see their next bill.
STATES EXPLORE TAX CUTS TO OFFSET SOARING INFLATION, BUT IT COULD MAKE THE PROBLEM WORSE
Starting in June, the telecommunications giant's wireless postpaid consumer customers will see an administrative charge increase of $1.35 per voice line to $3.30. The administrative charge for data lines will remain unchanged.
|VZ||VERIZON COMMUNICATIONS INC.||35.00||+0.18||+0.52%|
"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 FOX Business. "This is not a price plan increase."
JEFF BEZOS RIPS BIDEN'S ‘MISDIRECTION’ ON INFLATION, SAYS MANCHIN ‘SAVED’ DEMS ‘FROM THEMSELVES’
In addition, the company is introducing a new "economic adjustment charge" beginning June 16 for business customers.
The move comes as inflation continues to run near a 40-year high. The consumer price index, a broad measure of the price for everyday goods including gasoline, groceries and rents, rose 8.3% in April from a year ago, slightly below the 8.5% year-over-year surge recorded in March. Prices jumped 0.3% in the one-month period from March.
"We work every day to maintain competitive prices for our business customers — often by absorbing increases that we incur," the spokesperson added. "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."
Business customers who have newly activated and upgraded lines, existing lines that have completed a contract-based line term or lines that have 12 months or fewer remaining on a device payment plan agreement will be charged $2.20 per month per line for each smartphone and data device and 98 cents per month per line for each basic phone and tablet device.
CLICK HERE TO READ MORE ON FOX BUSINESS
Verizon isn't the only major wireless carrier making adjustments.
AT&T is raising monthly fees for non-Unlimited plans by up to $6 per month for single-line customers and up to $12 per month for family accounts. The plans have not seen an increase in three years.
"We are encouraging our customers to explore our newer plans which offer many additional features, more flexibility for each line on their account and, in many cases, a lower monthly cost," an AT&T spokesperson told FOX Business.
The company also separately announced that it will hike its internet service rates by $3 per month.
Fox Business' Megan Henney contributed to this report.