Inflation-linked or cartel? Why are telecoms in Bulgaria raising the prices?

All three telecommunications companies in the country announced a new price hike due to inflation. The increase will be reflected on the new bills. Ombudsman Diana Kovacheva described the actions of the telecoms as outrageous, and lawmakers promised that by September measures will be taken against cartel actions of mobile operators.

For the third year in a row, telecoms have been raising prices, citing inflation as justification, without the government intervening. Vivacom has announced that their price hike is 4.5% compared to last year. A1 are still considering what the increase will be. Yettel announced a price rise for monthly subscribers by 9.5%.

Yettel declined to comment on camera, but in a written response to BNT, it cited the 9.5%, rate of inflation last year, as the reason for the increase and said that the difficult economic conditions were having an impact on the company's operations.

Consumers are dissatisfied with the increase.

"I expected it, but I didn't expect it to be so brazen and brash. Whether we want or not, we have to pay the bills, we're tied up with children, families and so on."

The rise in monthly subscription fees has also sparked a reaction among MPs. Some have demanded that the current leadership of the Commission for Protection of Competition (CPC) be replaced.

"The management of the regulators will be replaced and once we have a clear mechanism how this will be done, and in what way - whether to rush or not both in terms of the CPC and in terms of some of the other regulators. They are not working and it is not just that. They do not look after the interests of the public," said Ivaylo Mirchev, MP from “We Continue the Change – Democratic Bulgaria” (WCC-DB).

"I think it is unacceptable to meddle in the work of regulators. Politicians have no business there," said Delyan Peevski, chairman of the MRF parliamentary group.

"The statement "We will change the management of CPC" is another proof of political interference in the work of independent bodies. This is not governance. The CPC and the other bodies should work without interferences and take their decisions," said Kornelia Ninova, chairwoman of the BSP.

We also sought the position of the CPC on the issue, but were left without an answer to the question of when was the last time the CPC checked mobile operators for unfair practices.

MP Ivaylo Mirchev promised that legal changes against cartel actions of mobile operators will be adopted by September.

"We believe that many of the mobile operators have serious political connections and political backing," Mirchev said.

According to Mirchev, there have been indications of a cartel at mobile operators for years and lawmakers have already been working on changing the rules under which the CPC would act. Mirchev also proposes to create conditions for competition, including the entry of new players in the mobile telecommunication market.

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