Loyalty works both ways, and Verizon is about to discover whether its longtime subscribers will stick with the mobile carrier after it ends some loyalty discounts. Verizon is also hiking administrative fees, which aren't included in the base prices of many plans. As everything else gets more expensive, Verizon customers are likely to be hit with incrementally higher bills.
Loyalty discounts disappearing… and returning?
Commenters in Verizon forums on Reddit last week shared notifications from Verizon that their existing loyalty discounts would be discontinued as of Sept. 1. Some customers report the removal of a $25 discount for having multiple lines on an account, while others are seeing the disappearance of $10 and $15 loyalty discounts. Current discounts with a future expiration date will apparently be honored beyond Sept. 1.
When CNET contacted a Verizon representative, we received a statement circulated to other outlets: "A small number of customers have been contacted about expirations to legacy discounts on their mobile accounts," it reads.
It's difficult to tell how many discounts are being removed. In fact, Verizon started offering some new loyalty deals recently. As reported by Droid Life, some customers are now seeing fresh offers when they request a transfer PIN to port their number to a different provider.
Read more: Is it time to look for another phone plan? We have suggestions.
Costlier administrative, tablet and activation fees
The removal of loyalty discounts will affect some Verizon customers, but a separate change will be more widespread: The company is increasing its Administrative and Telco Recovery Charge fees, a set of additional monthly expenses that are added to plans. These same fees were quietly raised in December 2024.
The Administrative fee increases to $3.78 from $3.50 for each line used for voice calling, which is most smartphones. For data-only plans, such as those covering cellular-enabled tablets, the price climbs to $3.97 per line from $1.60. The Telco Recovery Charge for voice-capable devices increases to $0.21 per line from $0.19.
Verizon's statement also addresses these fees: "From time to time, we review and make adjustments to the wireless Administrative and Telco Recovery Charge that helps recover some of Verizon's administrative and telco expenses and costs of complying with regulatory requirements," it reads. "The majority of Verizon customers will see an increase of less than 30 cents per line. This is not a price plan increase."
Earlier this year, Verizon introduced a three-year price lock on its MyPlan that applies to the cost of each plan, but doesn't include taxes and fees. So even though the base price of the plan remains constant, your bill will be higher.
T-Mobile also recently announced increases to the same fees, which have more impact now that all the company's current plans charge fees and taxes separately. Previously, taxes and fees were included in T-Mobile's monthly plan prices.
In addition to the increases already mentioned, Verizon is boosting the fee for tablet-only plans by $5 a month, and activation fees are now $40 instead of $35.
These pricing changes come against the backdrop of the carrier's struggles. In June, Verizon introduced a new AI-centered customer service overhaul, the same week that rival T-Mobile announced it had supplanted Verizon as the best mobile network in the US (a claim Verizon disputes due to the methodology of the testing involved).