Orange rules out linking its rates to short-term inflation

The Director of the Residential Market of Orange Spain, Diego Martinezhas ruled out this Tuesday link the prices of the new contracts to the Consumer Price Index (CPI) to offset the effect of inflation on the income statement.

However, in a meeting with the media to present the store in the company’s metaverse, the manager has not ventured to confirm whether the company’s strategy will be maintained in the medium and longdue to macroeconomic uncertainties and high competition in the sector.

The operator of French origin thus distances itself from Vodafone’s strategy, which at the end of August announced that would link its rates to the average CPI starting in January.

In this way, Vodafone has modified the existing contract model and will gradually transfer it to its customers, excluding from this average those vulnerable clients and Lowi, its ‘low-cost’ brand.

Telecommunications operators have been affected by inflation and the cost of energy in recent times, which have plunged into hypercompetitiveness and a shift to low cost in the sector, which prevents price increases. In fact, while year-on-year inflation was 10.5% in Augustthe prices of communications have suffered a fall of 2.2%.

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