Klaus Henke’s Post

Warning: Annual Mobile Network Price Rises Ahead Prepare yourselves – the annual mobile network price rise season is upon us once again. Brace for impact as your monthly bills may soon see a noticeable uptick. But why is this happening, and what can we expect? https://lnkd.in/eEsQwng5

In an era where connectivity is essential, consumers are facing a hidden battle on their broadband bills. Lurking beneath advertised rates, some argue, "junk fees" have silently inflated costs and eroded trust. This panel will unravel the complex story of how these fees are impacting affordable connectivity and distorting market competition. From the White House to state legislatures, efforts are underway to combat these practices. Join us as we explore broadband pricing, transparency, and affordable internet connectivity. https://lnkd.in/gwrGu9BM

Are cellphone and internet prices falling? It depends on how you measure it, but more importantly, bills are not. I pointed this out in a Toronto Star op-ed this weekend but I continue to see industry people spread misinformation. It isn't just TekSavvy that finds problems with how StatsCan looks at telecom prices - a recent analysis by The Globe and Mail came to the same conclusions. And it ultimately comes down to common sense - if prices really are coming down, why is that? Did Canada get a sudden infusion of competition that no one knows about? (Spoiler: The opposite has actually happened, with mergers and acquisitions decimating the number of competitors.) Or did the big telcos merely figure out how to juke StatsCan numbers in their favour? In the end, average revenue per user - ARPU - doesn't lie, and it is either flat in wireless or rising in the case of internet bills. This is a vital fact at a time when the CRTC is deciding on whether it should promote new *actual* competition. https://lnkd.in/gh-n7KWa

Ofcom proposing a ban on inflation linked in-contract price rises after a review of the practice in telecoms markets. Instead, providers would be able to increase prices by a set amount, presented clearly to consumers, under the proposed change. Will be interesting to see how this works in practice for consumers I.e it is a potential boon for transparency but will providers simply seek to forecast future inflation and price this in? Also interesting how it impacts operators, who are seeking to invest more in networks, rolling out gigabit capable broadband and 5G infrastructure.

[Industry trends - “In 2019, ADSL was the largest generator of income in the internet access services category, falling to third place in 2022.” In 2022, telecommunications services generated R254 billion in income, and mobile voice was the biggest earner, accounting for just over a third of the total. Mobile lines account for almost two-thirds of income. “On a more granular level, mobile voice and mobile data were the largest contributors to mobile lines, with SMS services taking up a smaller portion,” https://lnkd.in/dYm9GaEt

Is the market failing? Why internet access must be affordable for everyone 📉 In my new blog, I set out our belief at Careful Trouble (Careful Industries and Promising Trouble) that internet access is an essential utility, and it should be delivered and regulated as such. Current attempts to deliver affordable broadband and internet access are not working. We've seen dire social-tariff takeup and we're expecting yet another round of inflation-busting price rises from most of the major providers. Ofcom is currently consulting on a long overdue plan to ban these inflation-linked mid-contract price rises. This is welcome, but does not go far enough. And we have just seen yet another delay from industry in the implementation of their switching service, One Touch Switch, which will miss its *new* deadline of March 2024. Given its importance in day-to-day life, internet access must be available at an affordable rate for everyone. –– 🔗 https://lnkd.in/eFxyNz4p

T-Mobile Says It May Slow Home Internet Speeds of Some Users in Times of 'Congestion': T-Mobile has tweaked its terms of service for its home broadband users to add a new clause: If you are a heavy internet user that passes 1.2TB of data in a monthly billing cycle, you may have your speeds slowed in "times of congestion" or when there is a lot of pressure on the network. CNET: As spotted by The Mobile Report, the change went into effect on Jan. 18. In its updated terms, the carrier says that these users "will be prioritized last on the network" in congestion situations, which could mean painfully slow speeds for however long the congestion persists. T-Mobile does note that since its Home Internet service is available only in "limited areas" and intended to be used in a "stationary" setting, as opposed to a phone that could be in a busy place like a packed stadium, "these customers should be less likely to notice congestion in general." Read more of this story at Slashdot.

With 5.2 million FWA customers paying about 50 USD per month for an unlimited* service, T-Mobile USA bets on that US households find their fibre or cable internet (from e.g. AT&T or Comcast) so unreliable that they are willing to pay 30 USD per month for a capped (130 GB per month) 5G FWA backup. Or is this just a cheaper FWA tier being introduced? Nothing prevents you to use it as your primary internet if your monthly consumption is limited to 130 GB. https://lnkd.in/duaJceVm

About 1/3 of internet service subscribers are now provisioned for gigabit speeds, a 29% increase over Q422. Conversely, the number of subscribers on speeds below 100 Mbps has dwindled to 10%, a significant decrease (77%) from four years ago.

Is now the time to take back control of your telecoms spend. Approximately 11 million broadband users and 36 million mobile subscribers are locked into contracts with built-in inflation-linked price hikes, as reported by Ofcom. During peak inflation last April, some customers experienced a 17.9% increase in their bills, followed by another 8.8% hike this month. On average, bills have surged by 23% in the past two years. For households with a broadband and mobile package averaging £334 annually in 2022, the additional cost for broadband alone amounts to £77 annually, assuming they haven't switched providers. Switching providers could save broadband users an average of £179 yearly, while mobile subscribers could save £321 annually by switching to SIM-only contracts post the expiry of their 24-month handset contracts, according to Richard Neudegg, regulatory director at Uswitch.com. For example, someone on a typical £35 per month handset and data mobile plan has seen their yearly mobile bill escalate by £97 in the past two years.