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Anticipate Continued Price Increases by 5G Operators in 2024 

5G network operators in the US have been gradually increasing prices and fees over the past year. According to recent statements, this trend is likely to continue into the next year. 

AT&T CEO John Stankey expressed confidence in the potential for further price increases during an investor event. He emphasized the importance of enhancing customer relationships while delivering additional value. Stankey highlighted AT&T’s ability to align pricing with the value customers receive without disrupting the customer base. 

Verizon CEO Hans Vestberg echoed similar sentiments, noting the possibility of raising prices to offer customers more value. Vestberg emphasized the balance between increasing prices and providing enhanced services beneficial to shareholders and customers alike. While acknowledging opportunities for price adjustments, Vestberg indicated Verizon’s intention to be more measured in its approach compared to previous years. 

T-Mobile’s CEO Mike Sievert also discussed potential strategies for optimizing cost and revenue structures. While recognizing opportunities for adjustments, Sievert emphasized T-Mobile’s cautious and data-driven approach, ensuring changes align with customer expectations and acceptance levels. 

The operators’ inclination towards price adjustments began over a year ago, with increases in plan costs and fees. Verizon, AT&T, and T-Mobile initiated these adjustments, responding to financial pressures and market conditions. Despite rising inflation and significant investments in 5G infrastructure, revenue growth remained a challenge. 

Investors have responded positively to the operators’ ability to implement price increases without significant customer churn. The steady increase in average revenues per user (ARPUs) is seen as a positive indicator for future financial performance and sustainability. This trend suggests that the operators can maintain profitability and support growth despite market challenges. 

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