A string of telecoms companies are increasing their prices, putting
further pressure on household budgets.
Eir, Vodafone and Three Ireland are to hike their prices in the next two
months.
The bills for some people on bundled plans will rise by €96 a year.
It comes after Sky Ireland said it would hit many of its 600,000
customers with price rises in its broadband and TV subscription fees.
The Sky move will mean an average increase for households of around €52
a year from April. The average increase of 4.1pc follows a similar hike
last year.
Now it has emerged that the State’s largest telecoms provider Eir will
be raising prices from the start of April.
Like Three Ireland and Vodafone, Eir has switched to a model of annual
increases of a set percentage amount, plus the rate of inflation.
Eir now increases prices by the consumer price index for December of the
previous year, plus 3pc.
The monthly costs for customers who joined Eir or recontracted their Eir
services before March 1 this year will rise by 7.6pc from April 1. It
will mean some plans going up by €8 a month, or €96 a year.
If a customer has a broadband and phone with a standard monthly price of
€66, next April the monthly price will increase by €5 a month, or €60 a
year.
For Eir customers with broadband and phone, with a standard monthly
price of €66, and TV with standard monthly price of €20, and an Eir
Mobile Connect 30-day plan with an unbundled, stand-alone monthly price
of €30, the monthly price will increase by €8. Eir said its costs were
rising. It is investing €250m in telecoms infrastructure to deliver
fibre connectivity to 84pc of homes and businesses in Ireland.
Asked whether announcing annual set increases plus the rate of inflation
was not anti-competitive, it said it adhered to industry standards and
fully complied with all regulatory requirements. “Our annual price
adjustment model is designed to provide our customers with certainty and
transparency regarding their bills,” it said.
Vodafone said its prices for customers would rise from April but would
not confirm the level of the rises.
A Vodafone Ireland spokesperson said: “As per terms and conditions
outlined within customer contracts, we will be applying our annual price
adjustment rate to bill pay and fixed customers from April. We are in
the process of finalising the rate and will communicate to customers in
due course.”
However, it is expected the price of some plans could go up by 7.6pc
from April. This is based on a set annual rise in prices of 3pc plus the
consumer price index amount of 4.6pc last December.
It did not respond to questions about whether or not announcing a set
annual increase was price signalling.
Mobile phone operator Three Ireland said the cost of its plans would
rise by 7.6pc, made up of a 3pc annual rise, plus the rate of inflation
in January.
“Three customers on certain plans will see an adjustment applied to
their monthly recurring charge from April as agreed in their contract,”
it said
A €35-per-month 3 Bill Pay Unlimited SIMO 12 month contract will
increase by €2.66 per month, or almost €32 a year.
A €60 3 Bill pay Unlimited 5G contract will rise by €4.56 a month, which
works out at €54 a year.
Three said the increases were required to support continued investment
and for cost management purposes as operating costs continued to increase.
Daragh Cassidy from price-comparison site Bonkers.ie said the move to
inflation-linked annual hikes suggested there was price signalling –
which occurs when businesses make their competitors aware that they
intend to increase prices.
Price signalling is a breach of competition law.
The Competition and Consumer Protection Commission had no comment when
asked for its view on inflation-linked price rises and price signalling.
https://www.independent.ie/business/personal-finance/string-of-telecoms-firms-to-hike-their-broadband-mobile-and-tv-prices/a1686453687.html?hConversionEventId=AQEAAZQF2gAmdjYwMDAwMDE4ZC1jYTc2LTYzNGYtOGVhZi02YTRiMjJjOWVlMzfaACQ2MmYxMTI5Zi1hMTFkLTRlZTAtMDAwMC0wMjFlZjNhMGJjYzfaACQ5YWYxNTBjOC01YWNkLTRiNzEtYTViNC0zZTFmZjM2MzhhMmG47K6i2nyJS77kEvYYP2rsO4IhubE9fcej_E_lg0STXw&utm_campaign=IN:Daily&utm_content=zone_name&utm_medium=newsletter&utm_source=independent&utm_term=0-0&utm_testfeature=playvideo-202402210645
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