penny-wise, brand foolish
Posted by Mark J. Miller on April 13, 2012 05:52 PM
The economy may be getting stronger, but everybody is still looking to make a buck in any way possible. Verizon Wireless, the nation’s largest mobile provider, is no different, particularly since it had “a fourth-quarter decline in its wireless profit margins,” thanks in large part to “hefty subsidies” it had to fork over to Apple for its iPhone, according to Reuters.
Partially as a result, Verizon Wireless users will get the honor starting April 22 of paying an extra $30 when they decide to upgrade to a new phone. So consumers will pay the price of the new mobile device as well as the $30 service fee to upgrade.
Verizon, of course, would like consumers to know that they are not the only wireless company doing this. “AT&T Inc. said in January that it would tighten its upgrade policies this year to help reduce its costs for handset upgrades, but has not provided details,” Reuters reports. Perhaps this change at Verizon will now open the door for a similar effort by AT&T.
DigitalTrends points out that this isn’t the first Verizon attempt this year to try and get more bucks out of existing consumers. The company announced last week that “anyone who wants Verizon high-speed Internet will also be forced to purchase a landline phone plan as well.” And around New Year’s, Verizon said it would charge customers two bucks to pay bills online or by phone, something they’ve been wanting people to do for some time in order to cut down on mailing and HR costs. That one didn’t go over, but the other price increases are sure to stick.
Congrats, Verizon. You’ve found a new way to increase revenue and leave your customer base grumbling simultaneously.
[Image via Shutterstock]