Movistar and Vodafone have begun informing their customers about the price increases planned for 2024. Movistar is set to raise average prices by 3.1% when considering all convergent and non-convergent rate changes, while Vodafone plans an increase of 4.38%. The updates align with the average annual inflation calculated from October 2022 through September of the current year.
Movistar’s price adjustment takes effect on January 15, 2024, with Vodafone’s increase scheduled for the first quarter of next year.
Movistar states that the rate rise will fund service improvements to deliver a better experience, emphasizing a stronger connection with higher quality and broader coverage through investments in fiber networks and 5G+.
The price changes for Movistar’s main plans are as follows: myMovistar Max will move from the current monthly rate of 57.9 euros to 59.9 euros, a 3.45% increase; myMovistar Unlimited will rise from 74.9 euros to 76.9 euros (+2.67%); miMovistar Unlimited x2 will go from 90.9 euros to 93.9 euros (+3.3%); and miMovistar Unlimited x4 will increase from 120.9 euros to 123.9 euros (+2.48%).
In addition, Movistar will apply approximately a two-euro rise to its non-converged service rates. The company also confirmed that contracted promotions will continue under their existing terms until they expire.
vodafone
Vodafone’s tariffs are set to rise by an average of 1.64 euros in 2024. The British operator justifies the change by pointing to inflation and ongoing increases in energy prices, costs, services, and suppliers, noting that these factors have affected the business in a market that has seen deflation overall.
The company argues that price increases are necessary to support ongoing investments in expanding next generation 5G networks and the rapid growth of data traffic. Consequently, customers with current mobile contracts will see an average monthly rise of 0.8 euros for those on a standard tariff, with a similar increase for convergent plans. Overall, the average uplift is about 2.5 euros, inclusive of VAT.
It is noted that vulnerable customers and those on social tariffs are not included in this price adjustment. Vodafone explains that the measure aims to sustain the business over the long term and ensure resources for continued investment in next-generation networks and innovative products and services in a market where mobile prices have fallen over the years. The CNMC has highlighted significant revenue declines in the sector over the past decade, underscoring the broader context for these moves (source: CNMC statements).