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Price hikes for phone and internet after June elections

Price hikes for phone and ιnternet subscribers are underway after the elections on June 25. Providers will be able to change prices in line with the inflation.

Increases in fixed and mobile telephony tariffs as well as in the Internet should be expected by subscribers after the elections as the National Telecommunications and Posts Commission (EETT) “gave the green light” to change the regulation to allow the indexation of tariffs, newspaper ethnos.gr reported.

Providers’ request satisfied

This is a request that has been made for a long time by the Telephone and internet providers have filed a hikes increase to the relevant authorities long time ago.

The request has been an attempt to mitigate the increased energy costs, but also the shearing of their revenues due to inflation.

And this is because tariff adjustments cannot be decided unilaterally, as the EETT regulation provides that the terms in existing contracts cannot be modified by overturning those agreed upon throughout the validity of the contract.

Price changes once a year

With EETT’s green light, providers will be able to change charges once a year, the adjusted according to the level of inflation announced by ELSTAT.

As for the existing contracts, it is most likely that the possibility of withdrawal of the subscriber before the end of the contract without the payment of an early withdrawal clause is provided. However, this does not mean that they will not find the new regulation in front of them in the next provider they turn to.

EETT has already taken the decision to put the issue to a public consultation, which is expected to go live within the week. However, its results and the resulting new regulation will come after the elections as the duration of the consultation has been set at 30 days, although it is not excluded that it will receive a short extension if this is requested by the interested parties.

Cost for subscribers not clear yet

Under discussion is the possibility that a percentage of the adjustment ‘hikes’ will continue to be absorbed by the telecommunications providers so that the subscriber is not burdened with the entire increase.

However, the final consumer charge mix is not yet certain either as this will all be clarified during the consultation.

  • It is not certain that providers will decrease charges when inflation drops.

What is certain, however, is that users will have another burden at a time when their income is squeezed from everywhere without even being indexed for most.

In a meeting with journalists at the end of 2022, the CEO of Vodafone Greece, Haris Broumidis, referred to the increased operating costs of telecommunications companies.

“The operating costs of the telecommunications companies, which by nature are very energy-intensive, are very high. The whole network consumes energy, so there is a very high cost. At the same time we have already seen strong inflationary pressures in all the materials we use. For example, only in optical fibers the cost in some areas has increased by 80% and certainly there is also the labor cost as in an inflation environment of 10%, 11% or 9% wage increases must be made especially for the lowest paid so that they can meet our people to the increased cost of living”, he had said.

He had even estimated that the triple blow of energy, inflationary pressures and increased wage costs would cost Vodafone Greece 60 million euros in 2023 alone.
Internet is expensive in Greece

Greece among countries with most expensive tariffs

Greece has been among the countries with the most expensive tariffs for connecting to the Internet for years. Although prices are relatively improved compared to previous times, they remain higher than many other EU countries.

As the European Digital Economy and Society Index (DESI) 2022 found, together with Austria, Greece tend to have more attractive prices for lower speed packages, but are still among the countries with the highest prices for speeds above 100 Mbps.

And this at a time when, as far as the internet is concerned, only one in five households has access to very high speeds (VHCN), according to the same index.

Based on the data, fixed broadband prices in Greece are slightly higher compared to the European average, while a different model from the rest of Europe.

PS Just wishing our income would be objects to hikes according to inflation rates… – Kitty complained.

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5 comments

  1. Oh great! If they are going to increase the prices are they going to give the real MB we should have per the contract? I signed up almost two years ago for 100mb and barely get 50.

    • The clever wording in the contracts always state “Up to 100Mb” or whatever. It’s the same more or less everywhere – but I know, doesn’t make it right.

  2. I have always been curious as to why Greece is the most expensive country in the EU for Internet charges – and with probably one of the worst levels of speed and reliability.

  3. “It is not certain that providers will decrease charges when inflation drops.”

    This shows a fundamental misunderstanding of inflation. Inflation is cumulative like compound interest. If this year inflation is 10 % and next year inflation is 5 % then inflation will have gone down next year. Prices, however, will not. Prices will be 10 % higher at the end of this year and 15.5 % higher at the end of next year compared to what they were at the start of this year.

    It is true that certain individual prices may have gone down. In this case energy seems to be a critical item and that is indeed going up and down continuously as the supply/demand ratio changes with world events and actions by governments and energy producers. Wage increases, e.g provoked by inflation, tend to be a one way street and are also cumulative.

  4. On “PS Just wishing our income would be objects to hikes according to inflation rates… – Kitty complained”

    PS inflation indices assume all the prices (including the price of labour, wages) change at the same rate. Cost of living crisis is the cost of basics going up much higher relative to everything else (including our incomes) The constructed measure is a very poor representation of reality when prices do not change evenly and are also not matched by incomes.

    So your PS translates as: I wish it was inflationary – the prices passed on as wage increases. and so on… – that is, our incomes would go up so that we can afford to buy exactly what could have brought before the price hikes. And if the fear is of an inflationary process taking off, then the cause is not wages (they are in fact repressed by so-called structural reforms)