Major US carriers are raising monthly rates to increase revenue per user, contributing to a record 5.9% spike in wireless bills that has caught the attention of Federal Reserve policymakers.
T-Mobile is retiring over 1,000 older plans and raising prices up to $6 per line per month, which should boost revenue per user.
AT&T has hiked rates on older plans by $10 to $20 and increased a monthly per-line fee by $1, strengthening pricing power.
Verizon, as one of the Big 3 carriers, is part of the industry-wide strategy to increase revenue per customer through price increases.
US wireless bills recorded their largest monthly jump in three decades this August, driven by aggressive pricing strategies from T-Mobile, AT&T, and Verizon. The 5.9% increase in service costs contributed significantly to core inflation, influencing the Federal Reserve's recent interest rate policy decisions.
Carriers are executing strategies to boost revenue per customer, while also passing on increased regulatory costs and taxes, which now account for over 27% of the average bill.