With Belgium already considered expensive relative to its neighbours, some operators are raising prices further given the high rate of inflation
Consumers could save up to €240 per year: The Belgian regulator, the BIPT, has released the results of its latest national telecoms pricing benchmarking exercise, which show that consumers could be saving around €20 per month on average if they are prepared to shop around. Like previous iterations, the eighth edition of the benchmarking report highlights the financial benefits of price comparison. To encourage a more thrifty approach by users and to help them understand their usage profile, the BIPT has reflected consumers’ various needs in 10 distinct household types that provide a high-level overview of the market’s characteristics. It has also employed a dedicated “tariff simulator”, which enables users to analyse the prices of standalone telecoms services and bundled offers, as well as the cost of combining the services of multiple operators.
Increasing prices in line with inflation: While the BIPT’s reports have consistently advised consumers of the potential savings they could make, the regulator considers that current high inflation (above 12% in October 2022) makes it vital for users to compare operator prices frequently. Some operators have recently upped their prices according to the rate of inflation. This practice has supported top line trends in other countries, although there have been calls for policymakers to tighten the rules and allow customers to walk away if they find increases unaffordable. In addition, certain operators have adjusted the amount of data included in their tariffs. In a differentiated market environment, regularly comparing tariffs is perhaps more useful than ever. Given the comparatively higher prices, Belgium had already introduced a regulated social tariff for connectivity. Last year, the discount for this tariff was increased and its eligibility criteria were widened in order to encourage greater awareness and adoption.
Prices remain higher than in neighbouring countries: Each year, the BIPT’s international pricing study has found that the cost of telecoms services in Belgium are generally higher than in neighbouring countries (France, Germany, Luxembourg, the Netherlands and the UK). The price of bundled packages are relatively expensive and while basic mobile plans are competitive, Belgian consumers pay significantly more than in comparator countries as their voice and data needs increase. The BIPT suggests this may derive from high market concentration, with just three brands (BASE, Orange and Proximus) accounting for almost 90% of all mobile subscribers in Belgium – and that is despite them being broadly more expensive than their rivals. As operators in some mobile markets push for consolidation, the BIPT’s recently concluded spectrum auction will facilitate the entry of a new fourth player to boost competition, while providing telcos with the frequencies needed for 5G deployments to begin in earnest.
Source: https://www.bipt.be/operators/publication/save-up-to-240-per-year-by-comparing-telecoms-tariffs
