The year 2025 will bring not only price increases for telecommunications services
The year 2025 will be a challenging year for Slovak telecommunications operators. They will have to cope not only with changes in the market, but also with changes brought about by the government's consolidation package. The Telecommunication Union of the Slovak Republic expects that 2025 will bring not only price increases, but also the resolution of some controversial issues that are bothering market participants.
Telecommunications operators will continue to face increased costs in 2025, leading to further price increases. The final price for service users will be negatively affected not only by higher VAT, but also by the introduction of a transaction tax, which will increase costs for operators not only directly, but also indirectly through increased costs for their suppliers, who will pass the cost increase on to their prices. The question is not whether, but when and to what extent operators will pass on the cost increase to end-users.
Over the years, the market has been gradually consolidating. Operators that are for sale are bought not only by large companies, but also by regional operators. Several originally local operators have grown into regional operators by buying competitors and investing in network development. In 2025, sales or mergers of telecommunications operators will continue, as well as the emergence of new entities as part of groups of telecommunications operators. Telecommunications operators will continue to invest in the development of networks and services. In the case of mobile operators, this will also be due to the commitments they made as successful bidders in frequency tenders. Other operators, if they want to be competitive, are also forced to invest in the development of networks and services. All this will also be influenced by the activities of energy distribution companies that are building optical networks on their power poles. These activities have brought with them controversial moments that have come to the attention of the relevant authorities.
The year 2025 should also bring the resolution of some controversial issues that are troubling market participants. The mentioned activities of the distribution companies did not escape the attention of the competent authorities, as well as the obstruction of the entry of virtual mobile operators (MVNO) into the market by mobile operators. The Antimonopoly Office of the Slovak Republic and the Office for the Regulation of Electronic Communications and Postal Services are currently dealing with the issues. The Antimonopoly Office of the Slovak Republic has announced that a sectoral investigation into the construction of optical networks on power lines and access to them is continuing, and that it is investigating wholesale access to mobile networks for mobile virtual operators. The Office for the Regulation of Electronic Communications and Postal Services is resolving disputes between operators and distribution companies and, during the preparation of the tender for frequency allocation, is considering imposing obligations on mobile operators that would enable the entry of MVNOs into the market.
The Telecommunication Union of the Slovak Republic expects that, thanks to the actions of the aforementioned authorities, the actions of distribution companies will no longer pose a threat to fair competition in the market and that mobile operators will allow access to their radio networks, which will enable MVNOs to enter the market. The entry of MVNOs into the market will bring with it greater choice for mobile service users, pressure to increase quality and reduce prices.