Verizon Communication Inc is now increasing the monthly charges for their wireless services. Where rival companies are aggressively offering discounts to increase their user base, this has not affected the nation’s biggest carrier to lift subscription charges. Instead, Verizon is planning to increase the subscription charges by five or ten dollars a month. The increase in the rates will depend on the size of the plan subscribed.
Large monthly data plans come with bigger prices, and users will be able to carry-over unused data to the next month. There is also a feature called Safety Mode to help users avoid over-usage charges, which is done by slowing down the data speeds after the monthly cap is exceeded. An additional charge of five dollars is to be paid to avail this feature though.
Verizon is latest among the US carriers to increase prices. AT&T and Verizon are still leading the industry and they tower over rivals in both quality and customer support. Both the companies have almost 270 million connections together, out of the total 395 million connections all over the country. This is a big majority of the industry and these firms pocket the majority of the profits.
A new incentive offered by Verizon is the echo T-mobiles feature. Users will have the option to control the features through My Verizon app. The app will help users to find the amount of data consumed by apps, buy new devices, make changes to the existing plans, toggle Safety Mode, and chat with the customer service agents.
Nancy Clark, who is the senior vice president of marketing at Verizon said that almost 10% of their customers were paying for over-usages and that their average smartphone user used about 2.7 GB of data now, up from 1 GB before three years. “There’s very little growth left in the traditional parts of the wireless industry, and as such revenue growth has to come from increased revenue per user,” said Jan Dawson, chief analyst at Jackdaw Research.