Orange rules out linking its rates to inflation

Orange has ruled out following the strategy of its competitor Vodafone to link its rates to inflation. The director of the Residential Market of the French company in Spain, Diego Martínez, has rejected this Tuesday to link the prices of the new contracts to the Consumer Price Index (CPI) to offset the effect of inflation on the income statement. That does not exclude what may happen in the medium or long term because, as the manager has said, macroeconomic uncertainties and high competition in the sector make it very difficult to predict what the company’s strategy may be in the future, reports Ep.

The French company thus avoids following the path opened by Vodafone. At the end of August, the British operator reported that it had modified the existing contract model with its customers and that from the first quarter of 2023, will adjust the prices of its rates according to the variations experienced by inflation. Vodafone began to introduce this clause in the first week of September in new contracts and began to gradually communicate it to existing customers during the next weeks. The CPI formula applied by the European operator will be established by the official year-on-year inflation figure, calculated from October of the previous year to September of the current yeara system that the company considers “predictable and transparent”.

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