How it affects Internet, telephone and cable TV services

How it affects Internet, telephone and cable TV services

August 23, 2024 – 09:31

While there is no direct and linear relationship between the UTR update and the increase in tariffs for users, it is likely that some kind of impact will be observed on the costs of telecommunications services, since it is usually transferred.

He National Communications Agency (ENACOM) updated the value of the Radioelectric Rating Unit (UTR). It did so through the Resolution 328/2024The UTR is a unit of measurement used to calculate the fees and tariffs that telecommunications service licensees must pay for the use of the radio spectrum.

According to the official text, the update of the UTR value is based on the variation of the Minimum Vital and Mobile Salary (SMVM), an economic indicator that is used as a reference to adjust various values ​​in the country. As the SMVM increases, it is considered necessary to also adjust the value of the UTR to maintain a proportional relationship between the two.

What does this update mean for telecommunications services licensees?

This update means that licensees will have to pay higher radio fees and tariffs from the date the resolution comes into effect. This is because the value of the UTR, which is used as a basis for calculating these payments, has increased.

Is this increase passed on to users?

Although it is not mentioned in the official text, the update of the value of the Radioelectric Rating Unit (UTR) may have an indirect impact on users of telecommunications services. Although the update directly affects service licensees (such as telephone, internet and cable television companies), These additional costs are usually passed on, at least in part, to end consumers.

How can it affect users?

  • Increase in rates: The most direct way is through an increase in service rates. Telecommunications companies can justify an increase in their prices by arguing the increase in operating costs, including the new UTR values.
  • Reduction of services or benefits: Instead of raising rates, some companies may choose to reduce certain services or benefits included in their plans. For example, they might limit internet speeds, reduce the amount of data included in a plan, or remove TV channels from their packages.
  • Investment in new technologies: Companies could use part of the additional revenue to invest in new technologies and improve the quality of their services. However, this will not necessarily translate into cost reductions for users in the short term.

Source: Ambito

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