why package prices are likely to increase in 2022
A study commissioned by the French Telecoms Federation recommends an increase in the prices of mobile and fixed plans. It is based on the increase in expenditure for the construction of networks and on a tax rate considered to be very high. The study also points to other telecom-related sectors that would benefit from the networks without participating in their financing.
The subject is not new. And it is regularly put on the table: that of the financing of investments supported by operators to build fixed and mobile networks that provide connectivity to professionals and individuals. The operators run the cables from the buildings to the distributors. They mount the network antennas. And they buy at a high price the famous frequency bands that the government regularly auctions. Millimeter frequencies (more than 6 GHz) will also be on sale from 2022.
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A recent report claims that European operators are investing 52.5 billion euros per year to modernize their networks. But none of the companies that take advantage of these networks, notably the GAFAs, participate in their development. The operators of the Old Continent called in November 2021 on the public authorities to draft a law obliging large Internet companies to pay a tax to help with this financing. In the bundle are Google, Amazon, Netflix, Uber, Facebook, etc.
The price of mobile and fixed plans in France is low while telecom investments are high
But, even if this is put in place, it certainly will not be enough. First, because the taxes are relatively heavy. Secondly, because roaming charges, which brought in a lot of money for operators, have been abolished throughout the European Union. A decision which was recently extended until 2032. Then because the French ARPU (the average income per user) is one of the lowest in Europe. About 22 euros for a fixed triple play package. And 13 euros for a mobile plan with 50 GB of fair use.
These figures come from a study carried out by the consulting firm Arthur D. Little. It was commissioned by the French Telecoms Federation, which brings together all the b-to-c and b-to-b operators in France. This study points to the economic imbalance between investments made by operators, revenues from users and profits made by companies in the digital sector, GAFA and content providers in particular. According to the document, operator growth is significantly lower than that of other segments of the digital sector, in particular the internet giants and the manufacturers of smartphones and other connected objects.
The Telecoms Federation recommends an increase in tariffs in 2022
What solution to balance the equation? According to the daily Le Monde, which attended the end-of-year conference of the Telecoms Federation, its recommendation is simple: increase the price of fixed and mobile subscriptions. Simply. By increasing the amount collected from subscribers, the financial results are reduced. It is still necessary that all the operators do it at once. Because if an operator keeps prices low, he will win back customers from the competition. ARCEP could give a guideline for the increase to be coordinated. But will the French regulator give its consent during a presidential election year? Nothing is less sure.
Source: The world
