European telcos press price hikes on convergence bundles to offset inflation

No time to read?
Get a summary

Orange plans a price rise of between two and five euros for convergence bundles, set to take effect this Sunday. The move places the company alongside Movistar and Vodafone, who have already increased prices to counter inflation.

In the French market, the average uplift is around 3.42 percent, which trails the 6.8 percent and 6.5 percent increases implemented by Movistar and Vodafone, respectively. Orange previously adjusted its tariff structure last summer under a “more for more” approach, charging more for additional services.

Price comparison firm Kelisto.es analyzed the situation and found that overall prices across the major operators rose by about 4.36 euros on average, a 5.91 percent increase. The report includes all three national brands plus Yoigo, which ended promotional offers on convergence packages at the end of last year. This change implies an entry price that is roughly 16.94 percent higher than before.

Kelisto.es estimates that if the current customer base remains, the three telcos could generate an extra roughly 660 million euros in annual revenue. Telefónica would be leading the haul with about 300 million euros, followed by Vodafone, and then the other players; Orange is expected to contribute a substantial portion as well.

The telecom sector has historically shown resilience even when inflation trends are uneven. In 2022, margins faced pressure from rising electricity costs, even as inflation did not rise uniformly across all segments.

January, however, brought a notable shift. Mobile and fixed bundles posted the strongest monthly price increases in the series, recording a 5.4 percent gain as shoppers faced higher bundle costs across the board.

The pricing adjustments reflect ongoing pressures on operating costs, the need to invest in network quality, and the strategic choice by major providers to position bundled services as a value proposition that combines connectivity, content, and customer care. Consumers across North America and Europe can expect continued moves in pricing as telcos balance the demand for reliable service with the realities of inflation, energy costs, and competitive pressures. Across the Atlantic, operators are watching regulatory signals and consumer sentiment closely as they refine promotions and update packages to maintain loyalty while supporting network upgrades.

For customers evaluating options, it remains prudent to compare convergence offers, review contractual terms, and consider the total monthly cost including taxes and equipment fees. Subscribing for longer commitments may yield better value, but shoppers should weigh the benefits of flexible plans against the certainty of bundled discounts. Regular reviews of plan usage and data needs can help households avoid paying for unused services.

Overall, the trend points to continued, though uneven, price adjustments in the telecom space, driven by the combination of inflation, energy costs, and the strategic aim to secure recurring revenue through bundled offerings.

No time to read?
Get a summary
Previous Article

Avatar 2 Review: Ambition, Visuals, and the Stakes Ahead

Next Article

Chanel: Fashion Manifesto at the V&A London