Vodafone will raise its rates starting in January at the rate of the CPI
Vodafone will raise its rates at the rate of the Consumer Price Index (CPI) average starting next January, as reported this Wednesday by the operator.
Specifically, the company has modified the contract model existing with its clients due to the increase in the CPI and the consequent chain increase in the price of energy, costs, services and suppliers.
In this way, the European operator will automatically link the evolution of the CPI to its rates each year “predictably and completely transparently” to its customers.
The CPI formula applied by the European operator will be established by the official year-on-year CPI figurecalculated from October of the previous year to September of the current year.
Vodafone will introduce this clause in the new contracts this week and will gradually communicate this to existing customers over the next few years. The implementation of this new model will occur in the first quarter of 2023.
The vulnerable clients From a financial point of view, the operator’s social rates have been contracted will not be affected for the new model.
Long-term business sustainability
The company has explained that this measure seeks consolidate long-term business sustainability and secure the necessary resources for networks, products and services in Spain.
In this sense, despite the sector’s strong year-on-year growth in customers and data consumption, Mobile phone prices have fallen 32% since 2008according to the National Markets and Competition Commission (CNMC), with losses of more than 34% of income in the last 10 years and an erosion of business value by approximately 50%.
This has reduced investment capacity of operators in infrastructure for the new 5G telecommunications networks.
