Verizon Bumps Up Wireless Prices Citing Inflation Woes After AT&T

  • For the first time in two years, Verizon Communications Inc VZ will raise prices on its wireless bills, helping it shift the burden of higher costs, Bloomberg reports.
  • Industry watchdogs had warned that post-T-Mobile US, Inc's TMUS acquisition of Sprint Corp, there would be fewer wireless competitors, making it easier to raise prices. 
  • Implementing higher charges under cover of surging inflation represents a ripe time to capitalize on the situation.
  • Recently AT&T Inc T raised its rates on older consumer plans by $6 on single lines and $12 for families to cope with rising costs and higher wages.
  • The Labor Department data signaled that high consumer inflation could persist longer than expected.
  • The Verizon consumers will see a $1.35 increase in administrative charges for each voice line, starting with their June phone bill. 
  • Verizon's business customers will see a new "economic adjustment charge" beginning June 16, with mobile phone data plans increasing by $2.20 a month and basic service plans rising by $0.98.
  • Price Action: VZ shares traded higher by 1.86% at $49.07 on the last check Monday.
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