Hidden bill hikes by telecoms
The tricks telecommunications suppliers impose on subscribers in order to tackle inflation
The additional charges that telecommunications service providers impose on existing and new subscribers are hidden in the fine print of contracts. Service providers may not have – as they requested – the ability to adjust cellphone and landline tariffs based on inflation’s course, but indirect charges are the shortest route to increasing their revenue.
At the same time providers are imposing new charges, which are necessary, as their executives argue, in an environment of high inflation.
Therefore, as early as spring 2022, Vodafone inserted in its unlimited cellphone use programs a clause adjusting the fixed charge from the 13th month onward and until the end of the contract, with an additional charge of up to 1.50 euros, due to inflation and network investments. This term has also been added to fixed-rate contracts, with the company claiming that this way consumers will be able to provide their consent to charges related to inflation.
As of December 1, the company is raising the nominal value of its tariffs in a number of its programs, allowing its existing subscribers to terminate their contract free of charge up to two months before the date of implementation of the changes. For example, in the case of tariff changes for subscribers, announced on September 22 and taking effect on December 1, consumers had until October 1 to cancel their contract.
To bolster revenues, from October 1, Cosmote abolished the €1 discount for subscribers who chose to receive their bill online. Vodafone is making a similar move from October 22, while the subscribers of both providers had the chance to terminate their contract up to two months before the start of the changes.
These additional charges – for now Nova, the other player in Greek telecoms, has not made similar tariff adjustments – are being felt by more and more consumers. This is because either the first year of program validity has passed and the imposition of a fee of up to €1.50 has begun, or the abolition of the special e-bill discount has not yet been widely perceived.