Shubham Sawarkar
Verizon informed consumers that some business lines would be priced higher to compensate for overcoming growing inflation costs, similar to what rival AT&T apparently did earlier this month.
Related: Verizon Business CEO Tami Erwin announced to quit by end of 2022
Verizon, unlike AT&T, plans to add administration costs to monthly bills starting in June, ranging from $1.35 for a single phone line to $3.30 for four lines. For each smartphone and Internet device, some Verizon Business lines will be charged $2.20 per month/line 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 the further impact, we intend to offset a portion of these costs by implementing an economic adjustment charge,” Verizon stated.
Verizon customers were less sensitive to price increases than AT&T customers, according to Recon Analytics’ founder and principal analyst Roger Entner.
“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.
Some AT&T subscribers, according to Entner, would consider switching if price increases were applied. AT&T increased its monthly rates by $6 for single-line customers and up to $12 for families, excluding its new unlimited plans.
T-Mobile US and UScellular said earlier this month that they will not hike pricing on some plans. T-Mobile has locked in prices for some mobile and broadband users, and UScelluar has vowed to protect prices on all contracts until 2023.
