As of June 1, Telekom A1 Hrvatska is increasing monthly fees for its users by 6.9 percent based on the index clause. This decision is in accordance with the General Terms and Conditions and the average annual inflation rate for 2023. The company aims to inform its users about this increase.
In the notification sent to users 30 days before the start of the application, A1 Croatia explains that the average annual inflation rate for 2023 in Croatia was 8 percent. The application of the index clause does not allow termination of the contract without fees. The increase in fees applies to the full amount of monthly fees for tariffs, packages, and options without calculated discounts. Despite the inflation rate of 8 percent, A1 will implement a 6.9 percent increase in fees starting from June 1.
The decision to apply the index clause is driven by the significant increase in business costs, such as network construction and maintenance, equipment purchases, and energy price hikes. A1 Croatia stresses the importance of maintaining service quality amidst rising costs. The company mentions that the index clause is common in various industries, including telecommunications, insurance, construction, and space leasing across many EU countries.
Telecom companies, including A1 Croatia, are required to notify the regulator, HAKOM agency, about price changes at least 30 days in advance. A1 has followed this protocol. Due to the index clause introduced in 2023, which limits price increases to the annual inflation rate, users cannot terminate contracts without compensation. This limitation was only possible in the early months of 2023 when telecom companies were granted the ability to apply the index clause once a year.
In 2023, A1 Hrvatska implemented an 8.5 percent increase in fees on a specific date. Other telecom companies, like HT and Telemacho Hrvatska, also made price adjustments using the index clause in 2023. The decision on application for 2024 is pending for some companies, like HT. Despite user concerns, the index clause remains a legal mechanism for adjusting prices in line with inflation rates.