Swisscom, one of the largest mobile phone, landline, TV and internet providers in Switzerland, has announced that it will be raising its prices in line with inflation from June 1. The company has told its customers that it reserves the right to increase prices for both new customers and those on pre-agreed contracts.

Swisscom to give itself the right to raise prices

In an email to customers, reported in 20 Minuten, Swisscom said that it will be adapting its “general conditions of sale” from June 1, 2023. As part of the reforms, Swisscom said it now reserves “the right to revise our prices at any time in line with inflation… Any price change will be communicated in advance, in due time.”

Any price increases will be calculated through the Consumer Price Index (CPI) - the main barometer for inflation in Switzerland. The new rules will also allow the company to change the prices for people who are looking to start a new contract and customers with a contract already in place. 

Once a customer accepts the terms and conditions, Swisscom will be allowed to increase the price of their package once a year, regardless of the contract’s duration. Swisscom will also waive customers' right to cancel their contracts following notice of a price rise, meaning they will have to wait out the contract duration before being able to switch providers, even if the price has gone up.

Swiss consumer association condemns the change

The move was condemned by the Swiss consumer protection association SKS, with director Sara Stadler noting that the price rises will spark a “vicious cycle”: as the price of phone lines, internet and telecommunications services are used by the CPI to calculate inflation, if Swisscom increases its prices, the CPI will also rise, allowing for further price inflation.

What’s more, the SKS noted that customers will struggle to complain as they have announced the change months in advance. “Swisscom thus protects itself in advance and gives itself carte blanche to regularly increase its prices without having to fear the consequences,” Stadler concluded.

Other mobile and internet providers in Switzerland to follow suit

20 Minuten added that while Swisscom is the first to announce the change, other providers are set to follow suit. Salt and Sunrise have both told the newspaper that inflation-related price rises should come in 2024.

Thumb image: Shutterstock.com / Marlon Trottmann