Inflation forces Spain mobile providers to raise rates in January

Inflation has hit the mobile telecommunications industry in Spain with a vengeance, forcing the country’s three largest operators to declare substantial rate increases from January 2023.

The inflation rate in Spain is forecast to average 8.5% for 2022 after peaking at 10.8% in July, driven largely by strong increases in energy and food prices,

The three largest mobile providers Telefonica, Vodafone Spain and MasMovil have all announced rate increases of more than 6% to take effect from mid January in the new year, with budget plans Digi being the only hold out.

MasMovil, which in July merged its operations with Orange Spain, claims that its price hikes will only apply to about 20% of its 15 million plus users – those with a second mobile device.

Digi Spain, which has more than 3 million mobile subscribers, is the fastest growing mobile operator in the country, registering 29% growth in the past year, which has largely been attributed to its budget priced plans.

The companies that have announced coming price hikes attribute the rate rises to the savage inflation that has afflicted the Eurozone in the past year.

Vodafone Spain, which will raise it rates an average of 6.5%, said that it had not raised prices for its customers for 18 months and that the price hikes seek to curb the impact of inflation on energy costs and its suppliers, as well as to be able to maintain the rate of investment in infrastructures and new services.

Telefonica, the largest telco in Spain, has announced rate hikes averaging about 6.8% and says the increases are due to increased costs and service “improvements”.

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