It’s about to get a lot more expensive to be a Verizon Wireless customer.
Verizon revealed today that it plans to raise prices for its wireless service plans, even as smaller competitors have discounted rates to attract new customers.
Customers’ data plans will increase by $5 to $10 per month, depending on how much monthly data they buy. The pricier new plans do come with some benefits, including the ability to carry over unused data to the next month.
To save users from going over their monthly data caps, Verizon is also introducing a feature called Safety Mode that throttles data speeds if they exceed their limits. Users with smaller data allowances will have to pay $5 extra a month for what amounts to an insurance policy to shield them against exorbitant overage fees.
New iPhone might fuel network switchers
Verizon’s price hike comes as the world awaits the iPhone 7 this fall. While Apple’s next smartphone might seem boring to some observers due to the device’s probable lack of astonishing new features, each new iPhone release still means potential chaos for mobile companies. Consumers snatching up the new iPhone might be inclined to re-evaluate their mobile providers, according to Craig Moffett, a senior analyst at MoffettNathanson.
“Wireless phone buyers have gone into their typical hibernation mode, while they wait for the new iPhone release,” Moffett told The Wall Street Journal. “Switching activity has slowed to a crawl. It’s the ideal time to raise rates.”
Verizon customers won’t be forced into the new pricing plans, but if they don’t move to them, they won’t get the rollover data or free calling to Mexico and Canada.
The cheapest new Verizon plan will cost $55 a month for 2GB of monthly data and calling, while the most expensive plan will offer 24GB of data for $110. The new plans will be available starting July 7.
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