Telecommunication companies plans to shift VAT increase onto customers

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Investiční bankovnictví KB

      Cesky Telecom proposed the Czech Telecommunication Office (CTO) price changes for the next year, which calculates with shift of VAT increase onto customers. Mobile operators Cesky Mobil and T-Mobile will reportedly behave the same and Eurotel would also probably follow. Nevertheless, the IT minister Vladimir Mlynar plans to push through a return of the telecommunications services back to the lower VAT bracket after the Czech Republic’s accession to the EU in May 2004.

       Cesky Telecom’s proposal has to be approved by the CTO. We can expect that the higher prices for the telecommunications services will result in decline in demand – another decline of fixed lines, lower traffic, churn to cheaper tariffs or pre-paid services. The remaining question is how the telecommunications operators would behave if the telecommunications services return to the lower VAT bracket. We expect that the monthly fees will not change, which the calling rates could be cheaper.

      Tyto zprávy pro vás vytváří Investiční bankovnictví KB.