Verizon Raises Its Rates Again.

Verizon customers are facing a new increase in their bills, another typical move by telecommunications companies. Verizon users on Reddit have noticed a modest increase of 20 cents per line. This increase comes just a few years after a more significant hike in the "Telecom Administrative and Recovery Charge" that the company includes in monthly bills, raising doubts about the validity of Verizon's claim that this is due to operational costs.

George Koroneos, a spokesperson for Verizon, confirmed this increase, stating that starting December 18, the monthly Telecom Administrative and Recovery Charge will increase by $0.20 per line for mobile voice products (basic phones, Second Line, smartphones, etc.) and for data-only products (hotspots, tablets, etc.). As a result, the charge will rise from $3.30 to $3.50 per voice line on a plan, and from $1.40 to $1.60 per data line.

According to a support page from Verizon, this charge "helps cover and recover certain direct and indirect costs borne by us or our agents," including operating and maintenance expenses for the network. Companies like AT&T and T-Mobile use slightly different names for this same charge and claim that it also helps offset the costs of operating a wireless network. A more critical perspective holds that these companies separate this charge from their monthly fees to raise prices without sounding like they are doing so. This tactic was the reason for a class-action lawsuit against AT&T in 2022, which the company agreed to settle.

Though it's now only 20 cents, this small increase can add up significantly when multiplied by millions of users. In the third quarter of this year, Verizon reported a net profit of $3.4 billion, compared to $4.9 billion in the same period last year. Although fee increases are not new, they again serve as a reminder of the strategies these companies use to improve their financial results.