February 20, 2023
Double Digit Price Hikes Throughout Europe For Wireless
It looks like the Telcos are now being forced to do what we said they needed to do years ago.
British Telecom (BT) and most UK Telecom Operators increased prices a few weeks ago by double digit levels.
All of the other UK Telcos are following suit.
CEO of Orange has just confirmed that 70% of the impact of inflation will be dealt with global rate plan hikes.
Heydemann added it planned to “offset 70 per cent of the inflation impact on our costs through price increases in 2023” in Europe, including France.
Smartphone costs continue to increase for Telecom Operators & End Customers
Did anyone notice what Tim Cook said about the capacity of Apple customers to afford higher priced devices?
Cook was fielding a question about whether the iPhone’s rising average sales price was sustainable. After all, a top-of-the-line model that cost $1,150 in 2017 (the iPhone X with 256 gigabytes of storage) now fetches $1,600 (the iPhone 14 Pro Max with 1 terabyte)
His response: The price increase is no problem. In fact, consumers could probably be persuaded to spend more.
“I think people are willing to really stretch to get the best they can afford in that category,” Cook said on the call, noting that the iPhone has become “integral” to people’s lives. Consumers now use the device to make payments, control smart-home appliances, manage their health and store banking data, he said.
When will the Telecom Operators wake up and understand that the Status Quo no longer works?
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Article Sources :
- Telegraph On UK Telco Prices : https://www.telegraph.co.uk/business/2023/01/18/bt...
- BT Price Hikes by 14.4% : https://telecoms.com/519479/bt-hiking-broadband-pr...
- Guardian Huge Price Increases Coming : https://www.theguardian.com/business/2023/feb/13/u...
- Apple Smartphone Cost Increases : https://www.bloomberg.com/news/newsletters/2023-02...
- Orange : https://www.mobileworldlive.com/featured-content/h...