A1 Croatska Announces 6.9% Increase in Fees for Users: Understanding the Index Clause and Its Implications

Telekom A1 Croatska has announced that it will be increasing monthly fees for its users by 6.9 percent starting from June 1, 2024. This decision is based on the index clause, in accordance with the General Terms and Conditions, and the average annual inflation rate for 2024. The company sent notifications to users 30 days before the implementation of the increase, informing them that the average annual inflation rate in Croatia for 2024 was 8 percent.

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 inflation rate of 8 percent, A1 decided to increase fees by only 6.9 percent.

A1 Croatia explained that the index clause is a common practice in various industries and is also used in many EU countries. In accordance with regulations, the company 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 applied an 8.5 percent increase in fees which was lower than official inflation rate for previous year but still higher than actual inflation rate for same year . Other telecom companies like HT and Tele2 also utilized index clause to adjust prices accordingly with inflation rates . Decision on applying index clause for 2025 has not been made yet by these companies .

The index clause allows telecom companies to adjust prices once a year based on previous years inflation rate . It’s important for users to familiarize themselves with terms and conditions of their service providers so they can understand how such clauses affect their contracts