By David Leip / BloombergBusiness / VerizonVerizon Inc. plans to raise prices on some of its plans by an average of $25 to $35 per month for new customers, according to people familiar with the matter.
The move, announced Tuesday by the company, is aimed at driving down churn and lowering prices, which have become an important part of the company’s efforts to fend off a $3.4 billion takeover bid by Verizon by acquiring AOL Inc. and Comcast Corp.
The announcement came days after Verizon’s chief financial officer, Michael DeAngelo, said the carrier will raise prices by an annualized rate of 10% on all new customers.
Verizon declined to comment on the price increases, citing the ongoing litigation.
The carrier also plans to offer cheaper installment plans for new customer accounts, with an average annual fee of $39, people familiar said.
That’s an increase from the current rate of $59 for an installment plan, they said.
Verizon said the cost hikes would be implemented starting in mid-2016 and will take effect at the end of 2017.
The company has already raised the price of a new Verizon Wireless mobile plan by $40 a month, to $50.
The new $50 plan will have an annual fee, up from $35.
Verizon also plans a new $75 plan with a new annual fee for new accounts, up to $80 a month.
Verify is offering customers new and existing accounts at a discount of 20% to 30%, up from 15% to 25%.
The carrier plans to gradually lower its fixed rate charges to account for lower churn and higher profits as it battles to stay competitive against rivals.
The carriers plans come as Verizon moves to extend its offer of discounted mobile phones and services, including a smartphone bundle and tablet device, to more customers.
In the fourth quarter of 2016, Verizon reported revenue of $4.76 billion, up 4.6% from a year earlier.
Verzon reported a $6.4 million net loss for the quarter, compared with a loss of $3 billion a year ago.