FAQ
Status: 01/10/2023 08:21 a.m
Telefónica has announced price increases for mobile phone brands such as O2. What does this mean for customers? And what should you look out for when looking for a suitable mobile phone contract?
What does the price increase mean for Telefónica customers?
“More performance at the same price is – unlike in the past – no longer possible,” said Markus Haas, CEO of Telefónica Germany, the “Handelsblatt”, announcing a strong price increase for customers. In the spring, the basic prices for new mobile customers for all tariffs of group brands such as O2 or Blau are to rise by up to ten percent. First of all, this only applies to new customers; How existing customers will be dealt with is still open. However, if existing customers are faced with a price increase during the contract period, they have the option of making use of a special right of termination.
Are other cell phone providers following suit?
This is initially unclear. However, there was no clear rejection of price increases by the other two major German mobile phone providers. Deutsche Telekom informed the “Handelsblatt” that it is keeping “all options” open with regard to possible price increases. Vodafone said that they usually do not make any statements about future developments in pricing. However, a Vodafone spokesman pointed out that “the prices for telecommunications services have become steadily cheaper in recent years”.
Nick Kriegskotte, head of infrastructure and regulation at the digital association Bitkom, also sees the reason for the increase in costs in the massive increase in data in Germany. Almost 50 percent more data would have to be transmitted every year. The large network operators would invest eleven to twelve billion euros in the infrastructure every year, and the electricity costs would also currently hit the energy-intensive sector, he says tagesschau.de.
What should you look out for when considering mobile phone tariffs?
When searching for mobile phone tariffs without a mobile phone, the comparison portal Check24 alone spits out 387 tariffs. There is not one right contract for all customers, as user behavior and preferences differ. If you use about the same data volume every month, make just as many calls and write the same number of text messages, you can also find what you are looking for in contracts with a longer term.
However, if you want to remain flexible, models in which the data volume can be adjusted monthly can be worthwhile. Depending on where you live, the network provider plays an important role, as does age. There is a cheaper tariff for younger people – often up to 27 years of age when the contract begins.
How much data volume makes sense?
According to the Federal Network Agency, the average data volume used in 2021 per active SIM card per month was 4.3 gigabytes (GB) – that was 39 percent more than the year before. In 2016, the volume used was 1.1 GB. According to the comparison portal Verivox, however, the contracts of the major providers contain an average of 27 GB per contract – and thus more than six times as much.
Jens-Uwe Theumer from Verivox said: “Many consumers overestimate their need for data.” Users can usually find out how much data they actually use per month in their smartphone settings or use apps that track mobile data consumption.
4G or 5G?
There are now also various contracts that have a connection to the 5G network. With 5G, the download speed increases tenfold compared to the fourth generation of the mobile communications standard. This would make it possible to stream series in 4K quality on the go. And the so-called latency – i.e. the reaction time – also decreases.
Customers have to decide for themselves whether this is really necessary. If you stream a lot on the go, a 5G contract can be worthwhile. However, experts consider 4G to be completely sufficient for many applications. In addition, users must have a smartphone that is 5G-compatible.
There is currently no nationwide 5G network in Germany, even if the expansion is progressing quickly. According to the Federal Network Agency, the coverage with 5G by at least one network operator increased to around 79 percent of the area of the federal territory in October 2022. A year earlier, the proportion was 53 percent.
Which mobile phone providers are there in Germany?
In Germany there are a large number of mobile phone providers – from Congstar to Freenet to discount offers such as Aldi Talk. All providers use the cell phone network of one of the three major telecommunications giants in Germany: Deutsche Telekom, Vodafone and Telefónica Deutschland (O2).
Some of the smaller providers are simply subsidiaries of one of the three network providers, while other providers buy data volume or minutes from the three companies. Congstar and klarmobil.de use the Deutsche Telekom network, Otelo and Lidl Connect use the Vodafone network, and Blau, Aldi Talk or simplytel use the O2 network.
If you have had good experiences with your previous network but want to switch providers, you can quickly find the current network you are using on your smartphone. This can also be found in the settings on Android and Apple smartphones.
What is the best network?
Which of the three mobile networks currently available is the best also depends on the situation in Germany. In a broad test by Stiftung Warentest last year, all three network providers improved compared to the 2017 test. The Telekom network performed best last year – just ahead of Vodafone, and Telefónica (O2) came third.
A new and fourth network in Germany, 1&1 and Drillisch, is to be available in autumn of this year. 1&1 used to be Vodafone’s network. This granted price increases already once a clear rejection. Which providers still have dead spots and whether 2G, 4G or 5G is being used can also be found on the Dead zone map from the Federal Network Agency see.
Is a contract change worth it?
The change in the Telecommunications Act has applied to mobile phone contracts since December 2021. This means that mobile phone customers can cancel their contracts at any time after the minimum term has expired – with a notice period of one month. In many cases, more favorable conditions can also be negotiated with the old provider. Before doing so, however, it is always worth taking a look at comparison portals or having a consultation with the local providers.
According to the comparison portal Verivox, customers of Telekom, Vodafone and Telefónica (O2) could save up to 287 euros a year by switching to a cheaper discounter tariff. “Above all, mobile phone tariffs with small and medium-sized data budgets are offered much cheaper by lesser-known providers,” it says.
Discounter tariffs with four to five gigabytes (GB) of data are available from an average monthly price of five euros. A change can therefore be worthwhile. According to Manuel Siekmann from Check24, consumers could save up to 50 percent depending on usage behavior.
Are there hidden costs?
Anyone who concludes a mobile phone contract should make sure that the contract includes the so-called data automatic. If a customer has used up their data volume before the end of the billing period, the function automatically books new data packages. The advantage: there is always enough data volume available. The disadvantage: It can sometimes be very expensive, especially since the user can lose track of the debits.
There are contracts that exclude such data automation, in some search portals you can explicitly filter for it. Depending on the provider, the automatic data can also be switched off with a call, via SMS or in the app.