Chaining a pandemic with a war in the heart of Europe are not usually good ingredients to ensure the economic tranquility of the planet. In fact, in recent months prices and inflation have skyrocketed. Some products, such as electricity or gasoline, have exceeded the most pessimistic forecasts, but they are not the only ones, practically any material or product costs more now than it did a year ago. Internet is not free and there are several reasons that point to a general rise in prices.
A study carried out by the consulting firm EY has revealed several interesting things regarding the concerns of the Spanish. For example, we have been confirmed that 73% of users fear a massive rise in the prices of Internet connections. In addition, 67% fear that this increase will affect audiovisual content such as Netflix, Disney +, Amazon Prime Video or HBO Max.
In the report entitled “Decoding the digital home 2022” it is stated that 43% will maintain the contracted services during the pandemic. As we know, during those months of hard confinement, it turned brutally towards online shopping, online entertainment and other purely virtual activities. However, up to 30% plan to reduce the number of platforms to which they are registered. This problem may worsen as more platforms continue to appear and further fragment the legal supply of content.
Internet price: imminent rise?
We Spaniards continue to prioritize price over other factors when choosing an Internet offer. This happens in 72% of cases, which explains the success of companies such as Grupo MásMóvil or Digi, without forgetting low-cost brands such as Lowi, O2 or Simyo.
Despite everything, there is a high percentage of users who fear a general rise in prices. The truth is that, taking into account what happened in other markets or the increase in the price of supplies, it would not be something to rule out for the second half of the year.
Among the supplies that have become more expensive we have fiber optics. The global shortage of this component has triggered its prices and has lengthened waiting times. This puts at risk compliance with the deadlines set for wiring different areas with the latest generation broadband.
Fiber prices would have increased up to 70% from the historical lows of March 2021, going from 3.70 to 6.30 dollars per kilometer of fiber according to Cru Group, a market intelligence company, Europe, India and China. From this company they point out that:
“As the cost of deployment has suddenly doubled, it is now questionable whether countries will be able to meet the targets set for infrastructure construction, and whether this could have an impact on global connectivity.”
