Verizon To Raise Wireless Plan Prices With New ‘Economic Adjustment Charge’

Verizon has increased the price of its wireless plans.

The wireless network operator recently confirmed it had adjusted the price of its wireless plans to keep up with rising inflation, per a recent Bloomberg report.

Users will see the price adjustment starting in their June phone bill.

Verizon Price Increase Details

According to Bloomberg's report, Verizon will see a $1.35 to $3.30 increase in administrative charges for each voice line in a user's wireless plan.

Meanwhile, business customers will see a new "economic adjustment charge" come June 16. The company increases its mobile phone data plans (wireless plans for smartphones or data lines) by $2.20 a line per month and basic service plans' prices going up 98 cents.

The $2.20 a line per month increase covers smartphones or data lines on plans that recently activated or upgraded a line, completed a "contract-based line term," or have 12 months or less remaining on a device payment plan, per CNET.

9to5Mac reported in its article that Verizon CEO Hans Vestberg first raised the possibility of the company increasing its prices in an April call with investors, citing a 40-year high in inflation. However, he did not definitively confirm the price hike back then, saying that Verizon had "plans to be prepared for what it takes" to get through the inflation, including "different types of cost adjustments."

Verizon spokespersons confirmed the price increase, explaining that the company reviews and makes adjustments to fees to cover some of its administrative and telco expenses and costs of complying with regulatory requirements.

"We work every day to maintain competitive prices for our business customers - often by absorbing increases that we incur," a 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."

Tami Erwin, head of Verizon Business, said in an interview with Bloomberg that the company has been in the process of deciding how much the pressure everyone is feeling from the inflation Verizon can share with its clients.

Erwin also added that Verizon is trying to balance higher prices with better service, such as switching customers from outdated plans to new 5G offers, since there are no fixed-rate plans for businesses like there are for normal consumers.

Verizon has already started notifying consumers of this new "economic adjustment charge," while it has recently been in contact with "some of its larger corporate clients."

Despite the price increase, the company's stock went up by 1.2% following the price increase's confirmation.

We're All In This Together

Verizon isn't the only one that raised the price of its services.

The company's announcement followed AT&T's own announcement that it is increasing its prices as high as $12 for family plans and $6 for single-line users per month starting June 1 due to inflation.

SpaceX's internet service, Starlink, was also forced to increase its prices from $499 to $549 for deposit holders and $599 for new orders in late March to keep up with the rising inflation.