Curious about the Verizon Economic Adjustment Charge on your bill? This article breaks down everything you need to know, from what it is to how it affects your expenses.
So, without any further ado, let’s get started –
What is the Verizon Economic Adjustment Charge?
In the past year, we have witnessed a sudden increase in the cost of living, making many things quite expensive in the United States. It seems that Verizon has joined the list of service providers that have increased some of their fees.
As of June 16, 2022, Verizon has started charging a new administrative fee called the Economic Adjustment Charge.
Naturally, customers are curious about what it’s all about and why they have to pay for it. After all, network operators are notorious for charging fees that may not even be necessary.
What are Economic Adjustment Charges by Verizon in 2023?
The Verizon Economic Adjustment Charge, also known as EAC, is a fee that sometimes appears on the bills of Verizon customers. This fee is there because the telecommunications industry’s economic environment is always changing, which affects the cost of providing service. So, the EAC is a way for Verizon to adjust its prices to reflect these changes and help cover the costs of improving and expanding its network.
In June 2022, Verizon began charging enterprise customers a new “Economic Adjustment Fee.” Without an exemption, business customers’ cellular data rates were effectively increased by $2.20 per month, and basic service rates (tablets and non-smartphones) were increased by $0.98. On top of that, Verizon increased the $2.20 per month charge by another $0.78 for smartphones in January 2023.
Why does the Verizon Economic Adjustment Charge increase?
An inflationary economic climate has driven up operating costs, and the company is now passing those higher costs on to its customers. The new economic adjustment fee is intended to recover “administrative, telecommunications, and regulatory compliance costs,” particularly in the broader landscape of IT.
It is worth noting that Verizon is not the only wireless carrier doing this, as AT&T has also raised prices. While direct price increases primarily affect consumer and family plans, indirect increases – such as the increase in the cost of mobile devices (in some cases by as much as $25) – will have a noticeable impact on business customer spending.
Impact of Verizon Economic Adjustment Charge on Customer Costs
The cost impact of this change on enterprise customer spending is significant. All Verizon Business customers will be affected. NPI’s initial analysis shows that the fee will increase costs for customers by at least 5% (if not more). And as Verizon has shown, the increases may continue as the company struggles with inflation.
Start by optimizing and renegotiating your Verizon contract to achieve corresponding savings. Every 18 months, the company conducts an exercise to optimize its pricing, rates, discounts, credits, and terms and conditions. However, for most customers, this is long overdue – all the more reason to look into Verizon’s Economic Adjustment Charge.
Typically, one can achieve savings of 15% to 30% by optimizing and renegotiating contracts. This means that this measure will not only neutralize the impact of Verizon’s latest surcharges but will likely offset the impact of other surcharges that are coming soon.
FAQs
What is the Verizon Economic Adjustment Charge?
Verizon introduced a new fee in 2023 to offset the fluctuating costs of providing service and cover the expenses of network upgrades and expansions.
How much is the Economic Adjustment Charge for consumer accounts?
Economic adjustment charges are $1.35 per voice line per month.
Can customers dispute the Economic Adjustment Charge?
Customers can contact Verizon Corporate Store to dispute the EAC or negotiate their plan.
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