Movistar, Orange and Vodafone did lower the prices of their rates in 2021

The carrier fees They tend to have the bad reputation of constantly rising in price. However, every time there are portfolio renewals, there is usually a drop in price or an improvement in conditions, such as adding more mobile lines, so the final price is reduced. And if we add to that the offers temporary, we have that the price can be lower on many occasions. And now the data proves it.

Specifically, the high competition who has suffered telecommunications industry in recent years has made the prices have trended down, and that the operators have had to reduce their margins. We have not only seen this price drop in some modalities such as in fiber-only rates, but a study carried out by BofA Global Research affirms that this price drop also affected premium rates.

Prices dropped up to 10%

This group of analysts affirms that competition is still high in Europe, but that there are significant differences between some countries and others. In Spain, Italy and France is where the most pressured operators are found.

In our country, Telefonica, Orange, Vodafone and Yoigo reduced the price of high-end fares, with a drop that exceeded the 5% in rates with unlimited calls and data. In the rates of mid-range, the drop was up to 10%, while in the low cost the price drop was 5%.

movistar orange offer vodafone yoigo

Is price’s drop it has led the big operators to compete with second operators, as is the case of Telefónica with O2, Vodafone with Lowi, or Orange with Simyo, in order not to devalue their main brands and always orient them towards the premium market.

The fixed broadband price drop has been widespread throughout Europe, with the exception of Germany. They point out that the price difference between Telefónica and the operators with the most aggressive prices is not very large, due to the layout of the fiber optic wholesale market at present in our country.

Low prices in 2021, bad news for 2022

However, the fact that 2021 has been a good period to contract due to low prices, implies that 2022 it may be a bad year to do so, as operators are well positioned to be able to raise their prices throughout the year. They have reasons for this, including the rise in inflation and the CPI, where Movistar has argued that some of the price increases which will apply in February they have to do with the increase in the price of electricity. In addition, the offers on fiber-only rates are over.

In addition, the report indicates that the market consolidation of the operators would help to reduce this high level of competition as mergers between operators take place. Otherwise, future investments could be jeopardized, which are key because they have become a basic necessity in the economy for elements such as teleworking or online training.

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