“Premium” tariffs will pay more, but “low” tariffs will double the price war

As already happened in November 2023, This week Movistar began informing its customers about the increase You will see this on your bill starting January 13, 2025. A few days later, it was Vodafone’s turn, which will again raise prices based on the consumer price index for the third year in a row, but this time it will include personalized benefits for its customers.

After these initial announcements, it remains to be seen what its competitors will do. Experts believe that another yearcompanies that are more focused on budget How will Digi or Finetwork distance themselves from these increases? and they will even try to continue improving their performance. The big question is whether the creation of Masorange will affect the pricing policy of its two constituent groups – Orange and MásMóvil.

Movistar began notifying its users of this increase last Monday, the 25th. In 2025, growth will be about 5%.which is a percentage higher than 3% in 2024, but lower than 6.8% in 2023. However, as Kelisto explains, the increase will vary on a per-tariff basis as customers customize their miMovistar package by adding products to suit their tastes.

For example, Roams clarifies that 300 Mbps fiber will grow by 7%, and converged packages will grow from 0.19% to 4.9%. On television Movistar Plus+ increases the price by one euroand packages that include streaming content increase from 15% (Netflix Standard) to 18% (Total Fiction). In addition, the price of the Total Football package increases by 4 euros.

Percentage growth

Kelisto adds that the positive thing for Movistar users is that Their plans are not fixed, allowing them to change without penalty.. They will only have to be careful if they pay for the device in installments and want to continue watching all the football, since the supply in the market is limited and only Orange competes with Telefónica.

For its part, Vodafone this week began informing its subscribers and its distribution channel of a price increase of 3.05%, which corresponds to Average Consumer Price Index (CPI) from September 2023 to October 2024. This increase is lower than the 4.35% increase last year, and which in this case comes with personal benefits for the client.

Roaming analysts specify that this percentage means that for mobile communications the increase will be between 0.45 and 0.90 euros, and for fiber only – between 0.81 and 1.05 euros. In the case of convergent packages, their price will increase from 1.05 to 1.95 euros.. For their part, TV packages appear to be unaffected by the tariff revision.

In addition, Kelisto emphasizes that the growth This will only apply to those hired before July 2024.when the company updated its entire catalog with cheaper prices. “So while there will be growth for older customers, the company has actually reduced amounts this year,” they emphasize.

Orange and low cost

In the case of Orange in recent years made the promotion a few weeks after his competitorsusually at the end of the first quarter of the year. We will now have to wait to see whether this policy will continue after the merger or whether Masorange will opt for different pricing measures.

Quelisto is considered “highly likely” that he will follow Movistar with any small increase related to their football bets or those that include streaming platforms. However, they also remember that last year it was the operator who raised prices the least (only one to three euros for fiber optic and mobile communications).

Roams analysts also expect that the major brands of the Masorange group, i.e. Orange, MásMóvil and Yoigo are revising their tariff base upwardbut they don’t know whether they will consider the consumer price index or other factors when updating prices.

And what will happen to him? budget? In recent years, strong competition in this segment has led not only to a lack of price increases, but also to aggressive offers and price reductions. In this regard, experts emphasize that Alternative operators are pursuing a ‘different strategy from the big telecoms’.

For example, Digi has not stopped improving its tariffs

is expanding mobile data until this month without affecting prices, and already offers fiber from 10 euros per month. In addition, both the Romanian operator and Finetwork force their competitors to compete by offering a price of 20 to 30 euros per month.

Digi sources told EL ESPAÑOL-Invertia that The company does not plan to change its price support policy. and improve performance. In fact, they note that if they can cut rates, they will, as they have demonstrated in the past.

For his part, Romes notes that this scenario will mean that low-cost operators dependent on large brands such as O2, Lowi or Simyo “will continue to fight for low prices, given that it is now a truly brutal battle.”

The last factor is promotions. And I will remove some related to the purchase of devices for Black Friday, The major TV companies no longer have offers like they had in August and September. welcome back to school and football. Only time will tell if they will return to discounting to offset the impact that price increases may have on their customer base.