According to CNET, the country''s largest carrier will increase the administrative cost for consumer accounts by $1.35 per voice line starting with the June billing cycle. Consumer fees for tablets, smartwatches, hotspots, and other data products will not be affected.
According to a media spokesperson, the company analyzes and makes adjustments to fees to relieve some of its admin and telecom expenses as well as the costs associated with complying with regulatory requirements.
The consumer tax adjustment is in this category.
Verizon is implementing a new "Economic Adjustment Charge" of $2.20 per line, per month, "for smartphones or data lines on plans that have recently activated or upgraded a line, completed a "contract-based line term" or have 12 months or less left on a device payment plan."
Non-smartphones and tablets will be charged a recurring fee of $0.98 per month, according to CNET. Both business charges will go into effect starting June 16.
"The current economic conditions that are affecting businesses across the country continue to decline, and despite our greatest efforts to mitigate further impact, we intend to offset a portion of these costs by implementing a Economic Adjustment Charge."
AT&T and its rivals announced lower price increases on older mobile service plans by up to $6 for individuals and $12 for families earlier this month. AT&T also increased the cost of select Internet plans by $3 per month.
During the company''s earnings call, AT&T CEO John Stankey said there was no question that there is pressure across a broad spectrum of goods and services, and that AT&T wasn''t insulated from it. "I don''t think anybody in the business is insulated from that, and it''s not a good position for the overall economy to be in," said the analyst.
Leon Bredella, Karolina Grabowska, Image Credit