(Bloomberg) -- Verizon Communications Inc. will raise prices on its wireless bills for the first time in two years as the largest US wireless carrier grapples with higher costs.

Millions of consumers will see a $1.35 increase in administrative charges for each voice line starting in their June phone bill. And business customers will see a new “economic adjustment charge” beginning June 16, with mobile phone data plans increasing by $2.20 a month and basic service plans going up by 98 cents, according to Verizon representatives.

New York City-based Verizon started notifying customers Monday and has been contacting some of its larger corporate clients in recent days to tell them of the coming increases.

The news sent the stock up 1.2% at 11:16 a.m., erasing an earlier decline. Verizon shares have underperformed other US wireless carriers so far this year.

Like many businesses, Verizon has been weighing options on how to adjust to inflation pressure. Rival AT&T Inc. earlier this month raised its rates on older consumer plans by $6 on single lines and $12 for families in order to catch up with rising costs and higher wages.

Labor Department data last week signaled that elevated consumer inflation could persist for longer than expected.

“We’re all feeling the pressure and we’ve been in the process of deciding how much of that pressure we can share with our clients,” Tami Erwin, head of Verizon Business, said in an interview last week. 

Verizon is trying to balance higher prices with better service, like switching customers from outdated plans to new 5G offers, Erwin said. 

Since there are no fixed-rate plans for businesses like there are for consumers, each new corporate contract is a fresh chance at raising charges. Verizon will be able to negotiate higher prices into new service plans when the previous ones expire, Erwin said.

Industry watchdogs had warned that once T-Mobile US Inc. acquired Sprint Corp. two years ago, there would be fewer wireless competitors, making it easier to raise prices. Implementing higher charges under the cover of surging inflation represents a ripe time to capitalize on the situation.

It’s a “raise-your-prices-while-you-can” moment, said Harold Feld, senior vice president of the Washington-based policy group Public Knowledge, before the Verizon news.

(Updates with share move in fourth paragraph.)

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