For a long time, the prices for mobile phone contracts actually only went in one direction: either it got cheaper, or you got more and more performance for the same money. The O2 network in particular was always considered a safe bet when you were looking for the most lavish service package for the lowest price. This should come to an end for new customers from spring, explained Markus Haas, CEO of Telefónica Germany, to the “Handelsblatt”.

Due to increased investments in network expansion, the company is no longer able to offer “more service at the same price”, according to Haas in the business newspaper. Telefónica wants to start with the prepaid offers.

There is talk of price increases of up to ten percent. However, these are not “flat price surcharges”, but go hand in hand with better inclusive services, for example access to all tariffs in the 5G network, explained the company’s board of directors. If existing customers are also affected, they would have a special right of termination in the event of increases.

Christian Just, Head of Telecommunications Department

Just sees this as an approximation of Telekom’s strategy, which raised the prices of prepaid tariffs last year, but at the same time gave them access to the 5G network – which other providers in the Telekom network, such as Congstar, are denied.

The “Handelsblatt” also sees this announcement as the beginning of a trend reversal. It is said that the previous development towards more and more performance with prices falling or staying the same at the same time could soon come to an end in Germany. The magazine expects that Telekom and Vodafone will also announce changes to their current pricing in the near future.

A completely different question arises: “It is unclear whether the trend will also spread to discounters – at Aldi Talk, for example, the prices have remained stable in recent years, while at the same time the performance, for example in terms of data volume or the replacement of inclusive minutes, has improved Allnet flat rates, improved.”