UPDATE 1-Verizon raises wireless plan rates, offers more data

(Adds new details on price and data plans throughout, executive
quote)
By Malathi Nayak
NEW YORK, July 6 (Reuters) - Verizon Communications Inc (NYSE:VZ)
VZ.N , the No. 1 U.S. wireless provider, said on Wednesday that
it would increase plan rates but expand data buckets by 30
percent for its customers, who increasingly stream content
through mobile devices.
Starting July 7, the company will roll out a revamped
version of its My Verizon mobile app to let customers control
data overages and billing, as well as manage plans, it said.
Moreover, emulating moves by some of its rivals such as AT&T Inc (NYSE:T)
T.N and T-Mobile US Inc TMUS.O , it will let customers carry
unused data over to the next month and begin offering users on
certain plans unlimited text and calling to and from Mexico and
Canada.
The redesigned plans and app come as the company, known for
its high-quality network, is locked in a battle for subscribers
with competitors in the saturated U.S. wireless market.
Smaller rival Sprint Corp S.N has been offering half-off
discounts, and T-Mobile has launched free music, video-streaming
plans and other customer-friendly offers and free gifts to
attract customers away from competitors to their networks.
The new rate plans are meant to help customers tackle data
overage costs and "reflect the significant growth in individual
data use," Rob Miller, vice president of consumer pricing at
Verizon said in a webcast on Wednesday.
Verizon is hiking rates and increasing data across all its
plans. For instance, the basic "S" plan will cost $35, a $5
rise, and offer double the data at 2 gigabytes and the high-end
"XXL" plan will cost $10 more at $110 and offer 24 gigabytes as
opposed to the previous 16 gigabyte limit.
The company also said it will introduce a "safety mode" that
protects customers from data overages by slowing down their
speeds. The feature is free for those on the "XL" and "XXL"
plans and costs $5 for those on the "S", "M", "L" plans, it
said.
To tap new revenue beyond its bread-and-butter wireless
business, the company has shifted its focus to the
advertising-supported Internet business and acquired AOL last
June for $4.4 billion. It is seen as the front-runner in bidding
for Yahoo Inc's YHOO.O core Internet business.
Verizon shares were relatively unchanged at $55.93 in
afternoon trading.