Verizon is raising prices on older cell phone plans

By Jennifer Korn, CNN 

Verizon is raising the prices on some of its older cell phone plans, the company confirmed to CNN on Monday. The move is part of a broader effort to get more of its customer base on 5G plans.

Customers who decide to stay on one of Verizon's older Unlimited plans will be charged an additional $2 a month. The change will take effect on April 10.

"Customers who are currently on - or choose to stay on - older Unlimited postpaid wireless plans from seven years ago will be notified of a new rate plan adjustment by email, direct mail and in their next bill to account for the added cost of maintaining these legacy plans," the company said in a statement.

Plans facing a rate change include Beyond Unlimited, Beyond Unlimited 55+, Go Unlimited and Verizon Unlimited. The company is encouraging customers to upgrade to plans such as 5G Get More, 5G Start and others that provide more "choice" and "flexibility."

The price hike comes as Verizon looks to grow its consumer unit, a part of the business that's struggled to keep up with competitors. AT&T raised rates last year on some of its older plans by up to $6 for individual lines and $12 for family plans. Verizon followed with the same price increases.

Verizon, whose shares are down 30% over the past year, did not say how many customers will be impacted by the latest price hike.

Last week Verizon announced a management shakeup and appointed Sowmyanarayan Sampath as CEO of the consumer business unit. Verizon's chairman and CEO Hans Vestberg said the appointments reflect the company's mission to strengthen its "competitive capabilities."