• četvrtak, 24 jul 2025

Higher prices for phone calls due to Telekom privatization

Higher prices for phone calls due to Telekom privatization
The price of phone calls in Croatia has been significantly raised, and by new system of tariffs, local and inter-city calls cost the same, while international calls are much cheaper. The price of phone calls has been increased due to the way the Government privatized Croatian Telekom, states radio Free Europe. Natural monopoly has been sold to foreigners together with the control package, without implanting any insurance against monopolistic acts. That is why the foreign proprietor, in this case German Telekom, immediately used the chance and maximally increased its profit. How to take the money and remain virtuous? In Telekom, they probably thought that the explanation that Croatian system of tariffs was only adjusted with the system of EU states would be easiest to pass. However, that is not true, since equal price of local and inter-city calls does not exist in any state except in Luxembourg. And, as we all know, Luxembourg is just one big city, so there are not inter-city calls. But, due to that, alleged #adjustment# local calls have been raised three times, and subscription for 50%. At the same time, inter-city and international calls are cheaper, so Telekom claims that total raise in prices is 12 - 24%. Association for protection of consumers states that for majority of citizens, and they are those that do not make international calls, the increase would be 200%. In struggle against monopoly consumers are helpless, since they have no possibility to chose cheaper service. Secretary of the Association of independent unions, Vitomir Begovic, said that boycott was the only possible answer. If that is true, than the battle is lost in advance. Monopolists know that their services can simply not be boycotted. The state must limit the monopoly. In America and other states of liberal capitalism, it is done through economic regulation, which practically means that three key elements of business are regulated - prices, service quality and obligation that they are available for all under equal conditions. The public in Croatia is not informed of details of the contract of sale of Telekom, but it can be concluded by the acts of German owner that monopoly was by no means limited. This is a very dangerous recklessness, since privatization of other natural monopolies is yet to come in Croatia, first of all electric-power economy and Oil industry. And for such mistakes there is no remedy.