Telecommunications giant Verizon is facing criticism from customers following its latest fee adjustment announcement. The company, which serves over 156 million customers across the United States, plans to increase its Administrative and Telco Recovery Charge by $0.20 per line starting December 18.
The modification was initially spotted by a customer who shared their discovery on Reddit after noticing a notification in their bill. According to the customer’s post, the adjusted fee will amount to $3.50 for voice lines and $1.60 for data lines. When contacted, Verizon confirmed the price adjustment through a spokesperson, clarifying that while mobile voice and data-only products would be affected, Verizon Home Internet services would remain unchanged.
This increase follows a pattern of recent price adjustments by the telecommunications provider. Earlier this year in March, Verizon implemented a $4 monthly increase for several of its unlimited mobile plans, including 5G Start, 5G Play More, 5G Get More, and 5G Do More. Prior to that, in August 2023, the company raised rates by $3 monthly for customers using its Go, Beyond, Above, and 5G Start unlimited plans, following a $2 increase on select older unlimited plans in February of the same year.
The company has shown strong financial performance, reporting wireless service revenue of $19.8 billion in the third quarter of 2024, representing an approximate 3% increase compared to the previous year. However, these consecutive price increases have led to customer dissatisfaction, with some threatening to switch to alternative carriers.
Adding to the controversy, Verizon recently settled a $100 million class-action lawsuit regarding the same Administrative and Telco Recovery Charge. The legal action alleged that the company’s handling of this fee was misleading, with customers claiming that it wasn’t properly disclosed in their monthly plan pricing. The lawsuit specifically challenged Verizon’s representation of the charge on monthly bills, where it was described as covering costs billed by federal, state, or local governments.
The company has also made other notable changes to its pricing structure, including a reduction in its autopay discount from $10 to $5 monthly for customers on older phone plans. These various adjustments have contributed to Verizon’s reputation for maintaining higher prices compared to its major competitors in the
telecommunications industry.
According to Verizon’s website, the Administrative and Telco Recovery Charge is intended to help offset various direct and indirect costs incurred by the company’s agents. However, this explanation has done little to quell customer frustration over the continuing series of price increases and fee adjustments.
The timing of this latest fee increase, coming shortly after the settlement of the class-action lawsuit and following multiple other price adjustments throughout the year, has intensified customer reactions. While Verizon maintains its position as the leading mobile provider in the United States, these recurring price modifications have sparked ongoing debates about pricing transparency and customer satisfaction in the telecommunications sector.