Thursday, February 19, 2015

Movistar, Vodafone and Orange prices start rising after seven years – EntornoInteligente

Movistar, Vodafone and Orange prices start rising after seven years – EntornoInteligente

Expansion / The prices start rising telcos. After the deep economic crisis has resulted in a bloody and endless price war in the industry, operators timidly begin to terminate the period of falling prices. The intention is to improve their income, in a market that has lost more than a quarter of its total turnover since 2008 when invoiced 44.136 million euros, compared to 32.787 million in 2013, which will be less at the end of 2014. In addition, operators have undertaken major investments in recent years to deploy new fiber optic networks and 4G. Since 2008, they have invested 28,000 million euros.

This loss of revenue comes mainly from price reductions, since the park users has grown, especially in the business of broadband fixed during the crises (between 2008 and today) grew by 60%, 8 to 13 million users.

So, since 2011, the average revenue per fixed line fell 42.6%, while the Mobile average price per minute was reduced by 34%. And if you take the reference of 2009, the price index produced by the National Commission on Financial Markets and Competition (CNMC) which synthesizes and ponders all fixed, and mobile prices fall is much more significant, and slashing 60 %. Initially collateral declines, increases are being applied to offers and secondary plans, on the outskirts of the commercial supply of operators, but they are significant enough to consider taking place a turning point in the market. What is clear, and what the consulted experts agree, is that the period of strong price declines that began in 2008 and is much accentuated since 2012, has come to an end.

Actually, for now, is not much of ups pure price and deliver additional product (minutes or megabytes), especially megs for more money, with the aim of improving the average monthly income (ARPU, for its acronym in English). Monetizing data With these moves, operators seek to monetize the boom in mobile data, as they have not been able to obtain additional income for the provision of customers of new ultrafast 4G networks, which have failed receivable differential form.

The first piece moved this trend was Orange, which in May 2014 began charging by default when the customer completely consumed his bonus data, although the customer may choose not to use this feature model and return to the speed reduction. Orange applies a rate of one euro per 100 megs. From Monday 16 February, Vodafone has implemented a similar measure, setting a system of additional data charges when the initial bonus included in the fee is spent. Unlike Orange, Vodafone charged 2 euros per 200 megs.

But in addition, Vodafone has also been implemented price increases to some of its tariffs, providing, in turn, additional product. Base rate 10.89 euros and giga, has now cost 12 euros and offers 1.2 gigabytes. Like the Home2 of 18.15 euros which now costs 20 euros, but instead of a giga offers 1.5 gigabytes. It has also happened with Base3, who has spent 1 gig by 30.25 to 1.5 gigabytes for 31 euros. At the top of its offer, the Network of 36 euros, now costs 39, but has a giga more, like 46 euros Network, which now costs 49 euros.

Meanwhile, Telefónica has also pointed to this trend and from next April will raise prices of all broadband deals that are not part of the heart of its commercial offering, which is the Fusion range (an offer that combines fixed, mobile and TV), ie offers ADSL and fiber without moving. These changes affect a million customers of about 5.8 million broadband users.

So, your ADSL with calls go from 30-33 euros per month and no calls from 25-28 euros per month but in return, the customer can have all the speed you can provide line-usually the average achieved is 12 or 13 megas- not limited to the current 10 megs of speed. But there will be pure uploaded without speedup. Thus the fiber supply 100 megawatts will of 48-50 euros (4.16% increase) while the ADSL will rise from 42 to 45 euros, 7.14% more. Orange awaiting The fact that the two most active operators in this cycle change are Telefónica and Vodafone, Orange reflects that are pending approval of its takeover by Jazztel by the European Commission. The last movement of Orange in this regard is May 2014, long before its takeover by Jazztel it last September.

Since then, Orange does not suit you any initiative that could be interpreted as a sign of rising prices by the Community regulator, which has already, surprisingly, trouble approve the purchase of Jazztel considering that the concentration poses serious problems maintaining levels of competition in Spain.

With information Expansion

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