More telcos raise prices to offset VAT hike

4 Jan 2011

Dow Jones Newswires reports that French telecoms operator SFR and Numericable are the latest to increase tariffs to partially compensate for a value added tax (VAT) rise on triple-play services. SFR will raise retail broadband prices – by EUR2 for most monthly packages and by EUR1 for its entry-level option – and many of its mobile tariffs on 1 February 2011, whilst cableco Numericable’s prices will rise by 3% on average as of August 2011. France Telecom earlier said it will increase monthly tariffs by between EUR1 and EUR3 as of February 2011, although a company spokesperson said the tax increase will still cost it around EUR70 million a year (compared to around EUR316 million without any price raising). Bouygues Telecom also indicated it would pass on at least some of the tax hike to customers. France has increased VAT to 19.6% from 5.5% on combined internet, TV and telephony packages, scrapping a reduced rate applied to the TV portion of triple-play bundles.

France, Altice France (SFR), Bouygues Telecom, Orange Group, SFR