A1 Croatia Announces 6.9 Percent Increase in Monthly Fees for June 2023: Understanding the Index Clause

A1 Croatia has announced that they will be increasing monthly fees for their users by 6.9 percent starting from June 1, 2023. The decision to apply the index clause is based on the General Terms and Conditions and the average annual inflation rate for 2023, which was stated in a notification sent to users 30 days before the implementation of the increase.

The increase in fees applies to the full amount of monthly fees for tariffs, packages, and options without any calculated discounts. A1 Croatia cited rising costs of business operations, including network infrastructure, equipment purchases, and energy prices as factors contributing to the decision to apply the index clause. Despite an official inflation rate of 8 percent in Croatia for 2023, A1 decided to increase fees by only 6.9 percent.

The index clause is a common practice in various industries, including telecommunications, and is used in many EU countries. In accordance with regulations, A1 notified the regulator HAKOM agency about the price changes at least 30 days in advance. Users are informed that they do not have the option to terminate their contracts without compensation due to the application of the index clause.

In July 2023, A1 Hrvatska applied an increase of only 8.5 percent in fees compared to an official inflation rate of over 8 percent in previous years. Other telecom companies like HT and Tele2 also utilized similar practices by adjusting their prices according to inflation rates.

While it’s unclear if this practice will continue for future years, it’s important for users to familiarize themselves with their service providers’ terms and conditions regarding such clauses so they can make informed decisions about their contracts.

The decision on applying the index clause for future years has not been made yet by other telecom companies like HT and Tele2.

Overall, it’s essential that customers understand how such clauses affect their contracts and make informed decisions when choosing a service provider.