The expected price increase at KPN may have a domino effect. Earlier today, CEO Farwerck of the telecom company said on BNR that he could not rule out a rate increase for telephone and internet. “You can bet that the rates will be increased further,” says Ed Achterberg, telecom analyst at Telecompaper.
KPN rate increase ‘harbinger’ of increase for other providers
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According to Farwerck, last year’s rate increase was a result of increased inflation and increased wage demands. “We will look at the rates this quarter, but we have yet to make that decision,” the CEO said on BNR.
Also read | KPN does not rule out further rate increases
According to Achterberg, it is clear that other providers will quickly follow suit in that case. ‘Telecom operators, like many other companies, may increase their contracts according to the consumer index.’ He expects an increase of between 3 and 4 percent. ‘It is ultimately up to the operator to aim for the full margin or stay just below that.’ Achterberg estimates the chance that KPN will actually increase rates at ’99 percent’.
Also read | KPN is making more profits thanks to price increases and an expansion of its customer base
Shopping
According to the analyst, the rates in the Netherlands are ‘in the middle bracket’ of EU countries. Achterberg advises existing KPN customers to also look at other providers. ‘If you have been with KPN for three years, it is best to indicate that you are willing to stay provided they come up with a better deal.’
