Due to the growing energy prices, three mobile network operators in Latvia have decided to increase prices, as reported by LTV.
The new prices of Bite and Latvijas Mobilais Telefons (LMT) will adopt new, increased prices on 1 November. Tele2, on the other hand, will increase prices on 1 December.
Prices will increase for all tariff plans of the three major mobile network operators in Latvia. Bite will increase its prices by EUR 1.75, Tele2 will increase prices by EUR 1 – EUR 2, and LMT reports the average price increase for private persons will be EUR 2.
Companies deny claims of a possible mutual arrangement. Latvia’s Competition Council notes that the price increase in unlikely to have been coordinated in advance. It is clear, however, that companies observe each other’s business decisions.
Senior expert of Competition Council’s Analytical Department Mārtiņš Čerļenoks explained that the telecommunications sector is a market structure considered an oligopoly – this means there are few players in this market.
In such a market structure businesses are not price takers – they are price makers. On top of that, all of them depend on one another.
On top of that, the market is transparent. This can explain why prices are to be increased relatively simultaneously, he said.
Consumer Rights Protection Centre notes tat operators are able to change prices before the end of active contracts. As for changes to service prices, consumers are to be informed at least one month in advance. Operators have done just that.