US operator Verizon notified customers it would raise prices for some business lines to help offset rising inflation costs, following a similar move reportedly taken by rival AT&T earlier this month.
Verizon is taking a different tack to AT&T, planning to add administration fees to monthly bills of $1.35 per single voice line up to $3.30 for four lines from June. A representative told Mobile World Live (MWL) there would be no additional charges for data services.
Some Verizon Business lines will be charged a fee of $2.20 per month/line for each smartphone and data device, and $0.98 for each basic phone and tablet.
“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,” Verizon stated.
Recon Analytics’ founder and lead analyst Roger Entner told MWL Verizon’s customers were less sensitive to price increases than AT&T’s.
“The more modest size of the increase combined with the lower propensity to switch based on the increase should keep the churn impact for Verizon on a more manageable level,” Entner noted.
Entner previously noted some of AT&T’s subscribers would consider switching if price increases were implemented.
AT&T raised its prices by $6 a month for single-line customers and up to $12 for families, excluded its newest unlimited plans.
Earlier this month, rivals T-Mobile US and UScellular announced they would not raise rates on some plans.
UScelluar pledged to protect prices on all plans until 2023 and T-Mobile locked in prices for some mobile and broadband customers.Subscribe to our daily newsletter Back