Verizon Communications (NYSE:VZ) has announced its intention to implement price hikes for select wireless plans, as the leading U.S. telecom company seeks to reignite revenue growth following a period of reduced activity due to the pandemic.
Subscribers currently enrolled in the legacy Mix and Match plans will soon witness a price adjustment, with a $3 increase for individual lines and a $5 uptick for multiple lines. Tony Skiadas, the company’s financial chief, revealed this development during an investor conference held on Wednesday.
Skiadas explained, “We deemed it appropriate to reevaluate our pricing structure, moving away from the introductory phase and transitioning towards a pricing model that accurately reflects the value our customers receive.”
The revised pricing scheme is scheduled to take effect during the September billing cycle, and notifications regarding these changes have already commenced distribution over the past few weeks.
Recent reports indicate that just last month, Verizon augmented the monthly cost of its wireless home internet service by an additional $10. This strategic move follows the company’s successful second-quarter performance, surpassing profit projections and remarkably increasing its subscriber base—an unexpected feat that contradicted analysts’ predictions of a decline.
However, Verizon experienced a 3.5% drop in consolidated operating revenue throughout the quarter, marking a continuation of the nearly 2% decrease observed in the previous three months.
In a parallel development, Verizon’s competitor AT&T (NYSE:T) also revealed its intentions to raise rates for its retired Unlimited Elite plan in July, with the revised pricing structure coming into effect starting from the August billing cycle.
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