Mobile companies hike rates by up to 11%
IRELAND’S two biggest mobile phone companies are both raising their prices, blaming soaring energy costs.
Vodafone, which has 2.3 million customers, is increasing charges by more than 11% for some of its subscribers, it revealed yesterday.
Bills for mobile customers will rise by around €5 a month and for broadband customers by €7.
In a statement, Vodafone said: ‘This is not a blanket price rise and the price adjustment does not affect all customers. It applies to mobile bill-pay customers (less than 50%) who have contracted with us since July 30, 2021, and fixed broadband customers (5%) who have contracted with us since January 31, 2023, including customers who carried out a recontract.’ ‘Mobile bill-pay customers will see an average increase of approximately €5 a month and broadband customers will see an average increase of about €7 a month.’ And Three, the country’s largest mobile provider with 3.4 million customers, will raise prices by 4.5% but only for new subscribers since November 2021. A Three customer on Bill Pay Unlimited will see their monthly charge go up from €60 to €62.70.
Vodafone blamed the increase on ‘inflationary pressures such as energy having a significant impact’, while Three said its increase was ‘to ensure we can continue to deliver the best customer experience across the country through investment in our network, customer service, our stores and digital channels’.
Three told its customers: ‘Every April, Three Ireland is implementing a 4.5% price increase to our monthly charges. For existing customers the annual price adjustment will not apply unless they enter into a new contract.’
Vodafone said: ‘The macro environment has been very volatile over the last 12 to 18 months with inflationary pressures, such as energy, having a significant impact on all businesses.’ Consumers’ Association of Ireland chief Dermott Jewell said: ‘Affordability will now come to the forefront of personal spend. Consumers are now presented with a nudge to look at what is on offer and consider switching – something the average consumer, of necessity, is becoming quite adept at doing.’ A Vodafone spokesman said the price increases are the result of ‘increased energy and other costs’. Three said that in five years it had not increased prices for its customers.