Market Alert: AT&T and Verizon are raising prices
Inflation has hit seemingly every corner of the goods and services we buy, and now it’s coming for our cell phone bills, as Verizon and AT&T have announced price increases starting in June.
AT&T’s price hikes will hit consumers a bit harder even though they’re narrowly targeted at the company’s older wireless plans with the obvious angle of pushing people to move over to newer plans. At $6 to $12 per month, those are notable increases, which have been widely attributed to the cost of inflation – and millions of customers may be affected.
Less than two weeks after AT&T’s announcement, Verizon followed suit, notifying all their customers of a new rate hike set to commence next month. Consumers will see a $1.35 monthly increase – but businesses will bear a larger load, with data plans jumping by $2.20 and basic service plans by 98 cents monthly. These aren’t tied to existing rate structures or contracts, but rather are additional fees added onto monthly bills – meaning almost every Verizon customer is subject to them.
With costs rising across the board, enterprises are also under pressure to adapt to rising inflation, which leaves them with two options: raise prices on customers or find ways to reduce their costs. With the looming potential for recession and an increasingly price conscious marketplace, we are expecting a sharp rise in cost-cutting initiatives. That means reviewing areas where there’s an opportunity to take cost out – and mobile devices and services have been a consistent sweet spot for results. We typically drive reductions in enterprise voice and data costs by 15-30% or more, including mobility and saving millions of dollars per year in large organizations.
AT&T and Verizon may enjoy significant pricing power, but the marketplace remains highly competitive and there are many sources for negotiation leverage. If you would like to find out more about what these new pricing changes mean for your organization, or to look at broader network transformation opportunities, get in touch with us today.
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