Verizon is one of the largest wireless carriers in the US, and recently announced a new $2 fee to some of its older unlimited plans. This fee, which the carrier is describing as a "network optimization" fee, will be applied to customers with legacy plans dating back to before June 2018. The fee is set to take effect starting next month, and will be applied to all data plans except those on the company's new Verizon Up program.
Multiple reports indicate that, for several hours, an outage in the Verizon system is preventing users from activating new phones. This follows news that the carrier's position has been clear from the get-go that there's enough room for everybody and its 5G gear is far enough from the airlines' to not interfere with their operations.
Verizon is also planning to raise prices on legacy plans, per YouTube channel Tech Life Channel and CNET. The carrier is looking to adjust its plans to make way for more competitive options, such as those offered by other companies. The self-dubbed 'Un-carrier' used to make fun of its rivals. Now it's following Verizon's lead and introducing plans with higher prices.
Verizon Communications (VZ -1.31%) is one of the most unloved stocks in the market today. Shares are trading for just 8 times earnings and the company is currently in the midst of a restructuring plan, which includes job cuts and a shift in focus to other areas of growth.
Verizon has also been accused of overstating the reach of its 5G network. Starlink claimed areas it doesn't serve; Verizon data undermined by network limits. Many customers have complained about the slow speeds and frequent outages of the 5G network. Verizon says its Fios 2 Gig service is now available across New York City's five boroughs, although it hasn't clarified just how available the service is.
This article features a detailed 5G home internet comparison with T-Mobile vs Verizon when it comes to price, speeds, incentives, and more. T-Mobile is offering a $60 unlimited plan, while Verizon is offering a $70 unlimited plan. T-Mobile's plan includes its 5G network, while Verizon's plan only includes access to its 4G LTE network. Verizon also has an advantage in terms of coverage, as it has more towers and antennas than T-Mobile.
Verizon's new fees and prices for legacy plans are sure to have an impact on the wireless industry. It remains to be seen how customers will react to the changes, and whether or not they will be willing to pay more for the same services. However, with competition heating up, it's likely that other carriers will follow suit in order to remain competitive.
