Around five euros on average
Prices for the majority of internet tariffs are rising
April 8, 2024, 3:04 p.m
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Internet tariff providers are tightening prices in Germany. On average, the costs for customers go up by almost five euros compared to the previous year. Further increases are expected in the near future.
According to a study, the major Internet providers in Germany have increased more than half of their Internet tariffs. In 59 percent of new customer contracts, the prices in March of this year were higher than in the same period last year, as the comparison portal Verivox announced. In addition, further price increases are to be expected due to higher fees for competitors for using the Telekom network, the experts said.
Of the 37 offers examined, 22 were more expensive than a year ago, explained Verivox. The most tariff increases occurred with the providers O2 and Vodafone, which increased prices by five euros each in 91 percent and 75 percent of cases. Deutsche Telekom made 50 percent of the tariffs more expensive by three euros each. “Only 1&1 is keeping costs stable – and has even reduced prices in some cases,” explained Verivox. Across all tariffs, internet costs rose by an average of 4.95 euros per month or 60 euros per year.
Cost pressure brings movement into the market
“The prices for fixed-line internet were stable for years. In 2023, given the increased cost pressure, the market saw movement again for the first time,” explained Jens-Uwe Theumer from Verivox. Fiber optic and cable tariffs in particular are affected by the increases.
In addition, a further wave of price increases is to be expected, as competitors have recently started to charge higher prices for access to the Telekom network. The majority of Internet providers rely on such so-called wholesale products. “If Telekom increases its fees for network use, competitors will have to recalculate – in the current case to the detriment of their own customers,” explained Theumer. He pointed out that customers had a special right of termination in the event of price increases.
For the study, Verivox said it compared the new customer prices in March 2023 and 2024 and took into account contracts with a term of 24 months (excluding hardware, one-off costs or promotional benefits). The providers examined covered around 90 percent of the market.