Belgium is the latest market to demonstrate that, in stark contrast to other sectors like energy, telecoms pricing has not increased and in many cases, has fallen. Belgium mobile prices

The Belgian Institute for Postal Services and Telecommunications (BIPT) is the latest regulator to produce a report showing that consumers in the telecom sector have benefited from lower pricing over the past five years, despite inflation-driven price rises in most countries last year.

While inflation has driven prices up in many sectors, consumers in Belgium have actually benefited from lower mobile service costs over the past five years.

A Tale of Two Worlds: Telecoms vs. Everyday Expenses

Let’s face it, our wallets are feeling the pinch. Energy bills are skyrocketing, food prices are on an upward trajectory, and transportation costs are no exception. Yet, amidst this economic strain, the telecom sector stands out as a rare exception. This positive development comes at a time when European telecom companies are facing challenges generating adequate returns on investments.

Numbers Don’t Lie: A Look at Price Drops

The BIPT report delves deeper, analyzing mobile subscription price changes between 2019 and 2024. They examined ten consumer profiles with varying data needs, revealing a compelling story:

• Stability for Low Data Users: The price of subscriptions for consumers with minimal data needs (1-5GB) has remained steady at €15 per month since 2021.
• Significant Savings for Medium Data Users: For those requiring 10GB or more monthly data, the picture is even brighter. The cheapest option in 2024 (€15) is a remarkable decrease compared to the €27 minimum five years ago.
• Heavy Data Users Rejoice: The biggest price drops are seen in high data usage plans. Subscriptions offering at least 20GB have plummeted from €39 in 2019 to a mere €15 in 2024. Similarly, 100GB plans have witnessed a price reduction from €50 to €39 in the same timeframe.

Echoes Across the Channel: Similar Trends in the UK

While Belgium may be leading the charge, the UK telecom sector also offers a glimmer of hope. While some customers faced price increases due to inflation-linked formulas, Ofcom (the UK regulator) reported a positive trend:

• Real-Term Price Drops: Despite a significant increase in average data usage (249%!), the average monthly mobile phone service cost (excluding handset charges) has fallen by 33% in real terms over the past five years.
• Broadband Price Reductions: Similar positive trends extend to broadband services. Ultrafast and superfast broadband prices have witnessed notable reductions (15% and 13%, respectively) in promotional offers and list prices. Standard broadband dual-play bundles also saw a decrease in average prices.

The Belgian Advantage: A Market Fueled by Competition

BIPT’s research highlights a key factor driving these price reductions – increased competition. Virtually all brands now offer subscriptions with significantly more data compared to five years ago. However, price variations between brands exist, with a noticeable gap between premium and secondary (low-cost) options offered by major operators.

High Data Users: Options But Not Abundance

The arrival of high data packages (100GB and above) in 2021 marked a significant shift, with prices decreasing further in recent years. However, choice remains limited for these heavy data users. As of January 2024, only two brands cater to consumers needing at least 200GB of data. Belgium mobile prices

The Digi Effect: Anticipating New Players

The anticipated arrival of Digi, a fourth network operator, has spurred existing operators to act. Major players have launched secondary brands like Scarlet, Mobile Vikings, and hey! to compete, even if price increases still occur, they are often bundled with more data.

Similar story in the UK 

In January, UK regulator Ofcom pointed out that inflation-plus price formulas led to some customers experiencing large price rises in 2023. However, it added that average broadband and mobile prices have fallen in real terms in the last five years. Ultrafast-promoted prices were reduced by 15% and superfast list prices were reduced by 13%. Average list and promoted prices for standard broadband dual-play bundles decreased by 5% and 9%, respectively.

The average monthly price of mobile phone services, excluding handset costs, fell by 33% in real terms in the five years to 2023, despite average data use having increased by 249% over this period.

Room for Improvement: A Look Forward

Despite the positive developments for Belgian consumers, BIPT acknowledges there’s still room for growth. Their international price study in December 2023 revealed that Belgium remains more expensive than its neighbors for both limited and very high data packages.

Conclusion: A Brighter Future for Mobile Data

The Belgian telecom sector offers a beacon of hope, demonstrating that lower mobile prices are achievable. While challenges remain, the trend of decreasing costs and increasing data allowance paints a promising picture for consumers. This positive development, along with the potential arrival of new players, could further revolutionize the Belgian mobile landscape, making it a model for other countries seeking to offer consumers affordable mobile services.