Sunday, January 2, 2011

France : VAT increase can turn to a free IPhone for consumers

In France, government has increased VAT rate on Internet access from 5.5% to 19.6%. Based on this increase, most of telecom operators (Orange, SFR, Bouygues) increase their price to more or less reflect the VAT increase.

However, according to this site (http://eco.rue89.com/2010/12/30/mobiles-internet-et-si-on-resiliait-tous-nos-abonnements-182755), this price increase is considered as a possible breach on contract. Consumers who contracted a package including a mobile phone with a subscription are now allowed to keep the phone, stop the contract and ... re-initiate a new contract possibly including a new phone. So the expensive I-Phone acquired a few weeks ago within the scope of a contract can become yours ... and you can get a new one, restarting a new contract.

That's where sponsoring (or bundling subscription and phones) of mobile phone for recruiting new subscribers of expensive subscriptions or membership can turn to become very expensive for operators.

In a world of expected continuous inflation during next years, telecom operators would be well inspired to better study their pricing, contracts and bundling strategy instead of applying linear changes. As consumers, we should probably be even more careful reading terms and conditions in the future.

All this clearly benefits to mobile phone manufacturers. Apple, Samsung, Nokia and the likes but also Google through Android could accelerate their sales in France beginning of this year if this trick turns to be applied by a lot of consumers.


Price increases are also announced in Belgium. Will the same apply ?

To be continued.

Benoit Quirynen

2 comments:

  1. Its mobile app too, is out there inside a two-block radius of its retail location. The lone legal District-wide mobile app, GamBetDC, is run by the lottery and, partially as a result of|as a result of} it has no legal competitors, has supplied strains worse than market 우리카지노 averages. Also the app is geofenced out of any federal properties, a significant downside within the nation’s capital. Virginia took its first online sports activities guess in January 2021 and is now house to over a dozen operators. Pennsylvania consistently pulls in among the prime 5 largest sports activities betting handles, regardless of higher taxes and fees than another states. Pennsylvania was among a handful of states merely accept|to just accept} a legal retail sports activities guess in 2018 and, beginning with its 2019 digital launch, has been among the biggest markets within the country.

    ReplyDelete
  2. Within your quote, could also|you can even} modify quantity and materials and see value changes in real-time. Download this information to explore the processes involved in creating sheet steel components together with how to to|tips on how to} design frequent options and select the best materials. Designers embrace inventive freedom while producers breathe a sigh of relief – understanding the building specs are pre-set, and may be modified – for easy Scott Toilet Paper production. With KCD Software’s One-Button Machining, KCD’s Commander calculates and optimizes toolpaths, maximizes your materials yield with True Shape Nesting and generates CNC machine code for your CNC router.

    ReplyDelete