Internet becomes more expensive, without providers making extra profit

Despite the fact that a significant price increase has been announced by major internet providers, this does not mean that they are also making a profit. This has everything to do with inflation. According to various experts, various providers are under pressure. Making a profit is not necessarily the goal, although the turnover of providers is increasing.

Price increase internet providers

All major internet providers will increase in price from July 1. For example, Ziggo’s rates will increase by 8.5 percent and T-Mobile has a price increase of 8.6 percent. These large providers are therefore also the ones that rise the most in price. Delta will go up by 2 to 3 euros. KPN has increased the rate by 6.4 percent. Quite a significant price increase if you ask us and it gives the impression of grab inflation. However, according to experts, this is not the case.

Grab inflation or inflation

Grab inflation is an economic term that is also known as greedflation is called. This means that a company’s prices rise more than necessary to cover costs. Although it is quite normal for companies to pass on rising production costs to consumers, things sometimes get out of hand.

For example, there are companies that not only calculate the costs for consumers, but also generate extra profit from this. Thanks to inflation, many people are no longer aware that they are paying extra. This is because the prices are higher, so you are no longer surprised by ridiculous prices. Large internet providers incur enormous costs and they are rising even faster. So there is no question of grab inflation here, but of inflation.

Cost versus income

The costs of internet providers are rising and this leaves little to no profit for these companies. Dutch internet providers have high personnel costs, because employees also ask for a higher salary due to inflation. So there are several providers who have increased their prices by a percentage that has been added to personnel costs. In addition, many internet providers spend a higher amount on energy costs. This is also included in the new price increase.

Consequences for consumers

It is striking, the new price increase. For many consumers, this is a reason to switch to a new provider. The smaller internet providers often charge less for a subscription. This in turn is beneficial for consumers who want to make the switch. In addition, it is wise to take a good look at your current subscription. Maybe you have an extensive package that you actually don’t need at all. By taking a critical look at your current subscription, you can go a long way. Prices may rise even more, so making adjustments can’t hurt.

What to do?

Similar to switching your health insurance, it can also be beneficial to do this with your internet provider. Switching regularly gives you the opportunity to use the promotions and discounts that a provider has at that time. Inflation adjustment is usually applied to existing customers, rather than new customers. The chance that you will pay more for your internet is therefore greater if you keep staying with the same provider.