Telecoms Announce Price Increases: Telemach Hrvatska Implements 7.2% Index Clause

Starting on July 1, Telemach Hrvatska will be implementing an index clause of 7.2 percent to adjust the monthly fees for their tariff packages based on the official price list. This decision was confirmed by the company on Monday. The index clause allows telecom companies like Telemach to adjust prices annually based on the inflation rate.

Due to inflationary pressures, Telemach has decided to apply the index clause and increase the monthly fees of their tariff packages by 7.2 percent. Despite this increase, Telemach stated that their services remain 10 to 20 percent cheaper compared to competitors, offering top-notch technology and a superior user experience.

Users were informed about the price increase in SMS messages, with Telemach specifying that contracts cannot be terminated without compensation. This change comes after telecom companies introduced the possibility of contract termination without penalty at the beginning of 2023. The new fees will take effect on July 1, with the first bill reflecting the increase expected in August.

Other telecom companies like A1 Hrvatska and Hrvatski Telekom have also announced price adjustments using the index clause. A1 Croatia will raise prices by 6.9 percent from June 1, while HT will increase prices by 6.5 percent starting on July 1. It is worth noting that last year, Telemach increased prices by 8.3 percent based on the inflation rate in 2022, making it clear that this year’s price hike is a result of ongoing economic challenges.

Telecom companies are required to inform users about these changes at least 30 days in advance to allow them to make any necessary adjustments.

In conclusion, while some may view these price increases as negative news for consumers, it is important to recognize that they are necessary due to inflationary pressures facing all businesses today. As such, it is crucial for telecom companies like Telemach Hrvatska to continue providing transparency around these changes so that customers can make informed decisions about their usage and budgets moving forward into