ADVERTISEMENT

Telecom service tariffs to rise next year

Competition

Telecom service charges will increase next year for millions of subscribers, often at a higher extent than justified by the two-percentage-point VAT increase, the daily Nepszabadsag said on Friday.

Service providers are raising prices for the second time this year after no price rises in the past ten years.

The companies cite inflation and changes in market conditions, but there are also views saying that this is only a form of passing on the so-called crisis tax imposed on the sector last year for a temporary three years.

According to a summary published by the Hwsw.hu news portal site, Magyar Telekom’s monthly fees are increasing between HUF 260–760, while mobile phone per-minute call charges are rising an average HUF 2-3. When interviewed by the portal, U% and Invitel said they are only passing on the effect of the VAT rise. Vodafone and Telenor have not been able to provide information as yet on next year’s tariffs.

The number of subscribers and subscriber spending have been declining for more than 18 months, while fee payment discipline is deteriorating as well, the daily wrote. Service providers have been reporting falling revenues and profits every quarter this year. Although every company has carried out cost-cutting measures, they have tried to avoid major lay-offs. At the same time, expensive network development continues and telecoms must pay the crisis tax - HUF 61bn per year at sectoral level, the paper said.

Some elements of telecoms’ expenses has dropped, however, such as a reduction of termination fees announced by the national media and telecom authority in September. Earlier, when the market was on the rise, the companies had passed on similar reductions to the consumer, the daily noted.

ADVERTISEMENT

Digitization, sustainability among characteristics of future... Analysis

Digitization, sustainability among characteristics of future...

Lawmakers approve residency permit for digital nomads Parliament

Lawmakers approve residency permit for digital nomads

Transformation Delineation - Microsoft country general manag... Podcasts

Transformation Delineation - Microsoft country general manag...

Most districts not planning mandatory vaccination at kinderg... City

Most districts not planning mandatory vaccination at kinderg...

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.