Some telecommunication companies are considering the introduction of an indexation clause in their general terms and conditions so as to be able to adjust their services' prices to inflation or deflation rates once a year, explaining that the HAKOM regulator has already greenlighted such a move.

The Croatian Regulatory Authority for Network Industries (HAKOM) provided telecoms with its expert opinion on this matter in early November.

The expert opinion outlines in greater detail possibilities for the indexation of prices of telecommunication services to the annual inflation rate. The regulator also said that it had consulted a judgement of the Court of Justice of the European Union with rules that should be honoured by telecoms when they raise telecommunications charges due to inflation.

The HT telecom informed the Croatian state news agency Hina that it will amend its general terms and conditions with possible price changes amid rising inflation rates and that the new prices can be expected in the first half of 2023.

The A1 telecom has already notified its customers about the adoption of the index clause and the information is attached to emails with bills for December.

A1 says this clause is a regular practice in the global telecom industry against a backdrop of volatile market conditions and plans for necessary investments in the telecom infrastructure.

Telemach Croatia did not send any response to Hina’s query before the publication of the news item.

HAKOM has informed Hina that both Telemach and Iskon have requested an expert opinion on their plans to amend their terms and conditions.

The regulator also says that the percentages cited in the index clauses are not within its remit and that it has no influence on how much the prices will go up due to inflation, however, the increase should not exceed the related annual inflation rate.

Analysts have told Hina that it remains to be seen if the prices would be indexed to inflation in the coming period.