A1 Hrvatska, a leading telecommunications company in Croatia, announced that it will be increasing its monthly fees for users by 6.9 percent starting from June 1st. This increase is based on the index clause in accordance with the General Terms and Conditions and the average annual inflation rate for 2023.
The company has cited rising costs of business operations, including network infrastructure, equipment purchases, and energy prices as contributing factors to the decision to apply the index clause. Despite an official inflation rate of 8 percent, A1 decided to increase fees by 6.9 percent.
The index clause is a common practice in various industries, including telecommunications, and is also used in many EU countries. In accordance with regulations, A1 notified the regulator, HAKOM agency, about the price changes at least 30 days in advance. Users are informed that they do not have the option to terminate their contracts without compensation due to the application of the index clause.
In July 2023, A1 Hrvatska applied an 8.5 percent increase in fees which was lower than official inflation rate for previous year. Other telecom companies in Croatia like HT and Tele2 also utilized the index clause to adjust prices in line with inflation. The decision on applying the index clause for 2024 has not been made yet by these companies.
The index clause allows telecom companies to adjust prices once a year based on the previous year’s inflation rate. Users are advised to familiarize themselves with the terms and conditions of their service providers to understand the implications of such clauses on their contracts.
A1 explained that this increase is necessary due to rising operating costs and it will allow them to maintain their services at high quality standards while keeping prices competitive in market.
It’s worth noting that this increase may have significant impact on customers who rely heavily on internet and phone services as part of their daily lives.
Overall, this decision by A1 Croatia highlights how businesses must find ways to balance cost-cutting measures with maintaining quality services for customers while staying competitive in a rapidly changing market landscape.