Bottom line: Verizon is set to increase the administrative fee it collects from some consumer accounts and introduce a new "economic adjustment charge" for select business users starting in June. Here's how much you can expect your bill to go up.
The nation's largest carrier will increase the administrative fee 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 won't be impacted according to a report from CNET.
A Verizon spokesperson told the publication that from time to time, the company reviews and makes adjustments to fees to defray some of its admin and telco expenses and costs associated with complying with regulatory requirements.
The consumer fee adjustment falls into that category.
On the business side, 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 remaining on a device payment plan."
Non-smartphones and tablets will be charged a recurring fee of $0.98 per month, CNET added. Both business fees will go into effect starting June 16.
"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," the rep said.
Earlier this month, rival AT&T announced price increases on older mobile service plans by as much as $6 for individuals and $12 for families. AT&T also increased the cost of select Internet plans by $3 per month.
In April during the company's earnings call, AT&T CEO John Stankey said there was no question that there's pressure across a broad segment of goods and services and that AT&T wasn't insulated from it. "I don't think anybody in the industry is insulated from that, and it's not a good position for the overall economy to be in," Stankey added.