Telekom A1 Increases Monthly Fees by 6.9% Starting June 1: How It’s Being Done and What You Need to Know

As of June 1, Telekom A1 Hrvatska is implementing a 6.9 percent increase in monthly fees for its users. The decision was made based on the index clause and 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 through a notification sent 30 days before the start of the application.

The notification from A1 Croatia explained 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. This means that the increase in fees will apply to the full amount of monthly fees for tariffs, packages, and options without calculated discounts. Despite the high inflation rate of 8 percent, A1 has decided to implement a smaller increase of just 6.9 percent starting from June 1.

The decision to apply the index clause was driven by significant business costs such as network construction and maintenance, equipment purchases, and energy price hikes. A1 Croatia stressed that it is important to maintain service quality amidst rising costs. The index clause is common in various industries, including telecommunications, insurance, construction, and space leasing across many EU countries.

Telecom companies are required to notify regulators about price changes at least 30 days in advance under EU regulations. A1 has followed this protocol as required by law due to an index clause introduced in 2023 that limits price increases to an annual inflation rate or less than that amount each year. Users cannot terminate contracts without compensation due to this limitation introduced early in 2023 when telecom companies were granted permission once a year to apply it.

In addition to A1 Hrvatska’s increase in fees on a specific date earlier this year, other telecom companies like HT and Telemacho Hrvatska also implemented price adjustments using the index clause in