Verizon Hikes Fees For Legacy Unlimited Postpaid Wireless Plans - Here's By How Much

Verizon Communications Inc VZ is hiking prices on some older cellphone plans, adding a $2 per phone monthly fee for customers who do not switch to the company’s latest offerings.

• A spokesman said the higher price reflects “the added cost of maintaining these legacy plans,” the Wall Street Journal reports.
• The latest price boost, effective April 10, does not apply to currently available unlimited plans. 
• Also Read: Matt Ellis To Depart As Verizon CFO, Names Insider Tony Skiadas As New Finance Chief
• The increase applies to unlimited postpaid wireless plans from seven years ago, including the Beyond Unlimited and Go Unlimited plans, adding the $2 monthly charge for each phone line. 
• Customers with four phones on their plan would face an $8 monthly increase. Tablets, smartwatches, and other devices will remain intact.
• Verizon said customers could avoid the rate increase by switching to a currently offered unlimited plan. 
• In an interview last week, Verizon CEO Hans Vestberg said the company could be more surgical on pricing, increasing promotions for some offerings while potentially raising prices and offering more services on other plans.
• Despite some plan increases, cellphone bills did not pinch Americans much. According to the Bureau of Labor Statistics, the price of wireless telephone services rose 1.4% in January year-on-year. 
• In January, Verizon reported a fourth-quarter FY22 sales growth of 3.5% year-on-year to $35.3 billion, beating the consensus of $35.1 billion.
• Adjusted EPS of $1.19 was in line with the consensus.
• Total wireless service revenue was $18.8 billion, up 5.9% Y/Y. The quarter marked 416,000 total broadband net additions.

Price action: VZ shares traded higher by 0.16% at $38.21 in premarket on the last check Tuesday.