Is Verizon raising prices in 2024?
Is Verizon Set to Increase Its Prices in 2024?
Verizon Wireless is a major wireless service provider in the United States of America and serves over 150 million customers in the country. Recently, Verizon has faced stiff competition from other leading carriers such as AT&T and T-Mobile besides other low-cost carriers. This competition has led many to conclude that Verizon will have no option but to increase the prices in 2024 to achieve profits.
History of Verizon Pricing
Analyzing data from the last ten years, Verizon has not substantially raised the prices for the fundamental unlimited wireless plans. In some cases, the price has changed little when adjusted for data allowances and new plan additions. For instance, in 2015, Verizon offered an 8GB shared data plan for $80 per month. Currently, their fundamental unlimited plan begins at 70 dollars monthly.
However, there have been a few times that Verizon has tweaked its prices slightly over the years due to inflation and the increased costs of constructing and maintaining the networks. They have also tried new tiered unlimited plans of higher prices to capture higher data users. So, moderate price increases are not extraordinary for Big Red.
Market Competition
Intense competition in the wireless market sector has a very strong pricing pressure. For instance, T-Mobile and its CEO John Legere have geared their campaign towards calling themselves the ‘Un-Carrier’ and have offered consumer-friendly policies and rate plans that have prompted Verizon to act against them. As the competition remains intensifying as more 5G networks are established over the years, Verizon may have to continue offering low prices or they will be losing customers.
Possible Factors for Price Hike in 2024
Here are several possible reasons why Verizon might decide to increase the prices by 2024:
1. 5G Network Rollout Expenses: The establishment of Wireless networks or the next generation networks requires enormous capital investment, which Verizon may aim to recover through the increase of the monthly charges.
2. Inflation: If basic inflation starts moving upward in the U.S. economy, Verizon might increase its rates a little to achieve better profit margins.
3. Reduced Promotional Offers: Instead of changing the base monthly rates, Verizon could provide fewer promotional discounts to new customers and fewer subsidies on the handsets.
4. Service Enhancements: If Verizon moves to make more enhancements to their unlimited plans, for instance, Disney+ bundle, monthly hotspot data, or international roaming, they may alter prices.
Unlikely Without Competitive Pressure
Yet, it does not appear that Verizon will seek big one-party price increases in 2024 without reciprocal actions by rivals. In the current state of the wireless industry, the rates offered by carriers tend to mirror one another to maintain competitiveness. Verizon still perceives T-Mobile and AT&T as its direct competitors and knows that raising prices again may lead to clients’ attrition. As more and more phones are equipped with eSIM technology that also makes it easier to switch between carriers, customers will bolt if they find the prices inflated way above the other phone carriers in the market.
The Outcome?
In conclusion, Verizon mobile users should therefore not expect any drastic changes in prices for the next couple of years. At most, one can only expect roughly $5- $10 per month inflationary changes by 2024, together with the usual tweaking of plan features and promotional incentives. Provided that there are no significant market shocks or regulation changes, existing competitive forces should maintain Verizon’s prices stable, as happened in the past 10 years. Given the continuous shift to 5G and the likelihood of new service packages, wireless industry pricing will continue to be a developing narrative in the future. However, Verizon still needs to have the best and most reliable network to argue its right to match the prices of its competitors, so significant shifts seem unlikely. For now, Verizon customers can continue consuming wireless services with no close thought given to prices rising through 2024 and possibly 2025.
Ready to experience blazing-fast internet? Call us today at +1 844-967-4555 and discover the power of Verizon Fios Home Internet! Don’t miss out—get connected now!