Mobile Contracts: Price Drops and Increased Data on Internet Packages

Changes that will benefit mobile subscribers are coming soon, following the intervention of the government.

Both Kyriakos Mitsotakis and Digital Politics Minister Kyriakos Pierrakakis have recommended to mobile phone companies not only to reduce contract fees, but also to increase data rates on internet packages.

Announcements in the coming days

According to Sunday’s Nation and colleague Maria Liliopoulou, discussions are now at a very advanced stage and within the next few days – the first ten days of December – as government spokesman Stelios Petsas announced, companies’ commitment to streamlining invoices downwards.

Of course, as all parties point out, it is impossible for such a move to involve a horizontal reduction, same for each provider, as it is a self-regulated free market, and there is the critical issue of competition between companies and »The over-taxation of the industry.

Less “phone” contracts and more data

However, it will be an important breath, which will either reduce the final amount paid by the subscribers each month, or multiply the services provided and in particular the use of data at the same rate.

This implies an indirect reduction in contracts, as consumers will be covered by lower-priced contracts that are expected to offer more data.

In any case, it is certain that the commercial policy of the companies will be adjusted as the planned doubling of the data provided, even if it is decided to be followed initially by a single provider who decides to ‘sacrifice’ part of his average earnings per share. user, will necessarily compete with others for the sake of competition.

What is assured, as cleared by competent lips, is that changes are expected to apply to both old and new contracts.

At the table and corporate taxation

To achieve this, the ministry’s recommendations have been in the industry for months, which in turn has repeatedly complained about over-taxing its services, which have proven to be among the highest in the world, reaching up to 49% of total burden depending on consumption and significantly affecting demand as it ‘punishes’ greater use.

Although the issues of reducing high taxes on mobile telephony have not been resolved by the tax bill , the government is “listening” to the request, with Mr Pierrakakis acknowledging in a recent statement that taxes are indeed high and that although they are not responsible specific announcements and schedules, the question has already been tested and understood by the government: “as the economic situation improves, the financial cushion created, the more steps down taxes there mo can, depending on our election commitments “ .

This is certainly not so simple as any tax relief will probably need to be offset by compensatory measures, as the industry’s annual taxation is a major injection into public funds. At the same time, the industry seems to have been ‘greatly relieved’ by the rapid adoption of provisions to simplify and accelerate the licensing of telephone systems.

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