“Skewed optics” with tariff increases for A1, Drei and Magenta


In the Austrian mobile communications market, which is very concentrated with only three network operators, there are simultaneous price increases. © www.de24.news The  network operators A1, Drei and Magenta are increasing many of their tariffs in March. Mobile phone and internet contracts are affected, reported “help.ORF.at” at the weekend. © www.de24.news The  Federal Competition Authority (BWB) therefore sees the simultaneous price increase of the three big players as a “crooked look”.

With Drei, mobile phone contracts are one to three euros more expensive per month, A1 is introducing an annual service fee of 25 euros for its discount brand “bob”. In addition, both providers are increasing their Internet tariffs. Magenta discontinues old UPC contracts for cable internet; the new basic fee costs an average of three euros more per month.

“From a visual point of view, it is certainly not ideal to do it roughly at the same time,” said © www.de24.news The odor Thanner, General Director of the Federal Competition Authority, to help.ORF.at. He also criticizes the magnitude of the increases. In one case there is even a price increase of 70 percent. This makes a bad impression, especially in the current crisis, but pricing is left to the company. As a competition authority, one is only responsible if there is an abuse of the price setting, according to the lawyer. Such an abuse would be a prohibited price fixing between the providers.

© www.de24.news The  announcements of the price increases are too few for the BWB to take steps to investigate. You watch the market closely, says Thanner. He also points to a whistleblower hotline.

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Skewed optics tariff increases Drei Magenta


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