(new: reaction from Freenet)

MUNICH (dpa-AFX) - Telecommunications group Telefónica Deutschland wants to turn the price screw. Basic prices at mobile brands such as O2 and Blau are to rise by up to ten percent in the spring, company CEO Markus Haas told the "Handelsblatt" newspaper. "More service at the same price - unlike in the past - is no longer possible." As justification, the manager referred to the investment costs for the expansion of the network. A company spokesman said it was "not a question of a pure price increase, but of more performance in the rates at a fair surcharge." Customers continue to have "a very good price-performance ratio" with the O2 Telefónica brands.

The price increases at O2 are not about existing customers, but about new contracts and prepaid rates. The O2 spokesman cites as an example of a concrete price increase that customers will get up to 60 percent more data volume and 30 percent more speed in prepaid rates for one euro more per month. According to industry experts, such an increase in the performance of the Telefónica tariff is not financially significant because the capacities of the network have increased significantly as a result of the massive expansion and the extension to the 5G radio standard. In addition, many customers do not use up the increased data volume anyway.

Will it now also be more expensive at the competition? A Telekom spokesperson said that the higher civil engineering costs and increased energy prices were making themselves felt at the Group "despite a forward-looking purchasing policy." "We are keeping all options open in our future rate setting."

A Vodafone spokesman said it does not usually comment on future pricing developments. However, he pointed out that "prices for telecommunications services have become steadily cheaper in recent years."

In the view of telecommunications professor Torsten Gerpott of the University of Duisburg-Essen, O2's announcement is a prelude to a general price increase in the cell phone market. "It is an oligopolistic market with weak competition: few providers look at each other and influence each other."

With O2, he said, one company is now setting a trend that the other network operators will presumably follow. From a business point of view, the decision is understandable, he said; after all, electricity and construction work have become significantly more expensive. "The telecommunications companies would be ill-advised if they stuck to previous prices despite such extra costs."

In recent years, there have been only a few price increases in mobile communications, "most of which were somewhat offset by improved inclusive services," said Verena Blöcher of the comparison portal Verivox. That is now probably over.

In contrast to the three established network operators, a clear no to more expensive rates comes from telecommunications provider 1&1. "We are not planning any price increases for mobile rates," said a company spokeswoman. 1&1 does not currently have its own network used by cell phone users on the move, but is currently building one and plans to activate it in the fall. So far, 1&1 has primarily relied on the O2 cell phone network and pays rent for it. Freenet also has a business model like this. Its spokeswoman said, "We currently have no plans to adjust our prices."

Consumer advocates are reacting with disappointment to the O2 announcement. "It is annoying for consumers that in times of generally increasing prices, cell phone tariffs will soon also become more expensive," says Felix Flosbach from the consumer center NRW. He appeals to consumers to compare different rates from different providers before signing a contract. "It's worth it." Consumers should not be afraid to switch providers. "Number portability is simple and free of charge, and the connection may only be down for a maximum of one day as a result of this change."

Manuel Siekmann of the comparison portal Check24 says that in addition to the network operators, "many other mobile providers offer attractive prices" for new customers. Depending on usage patterns, consumers could save up to 50 percent.

Germany's mobile providers have been massively expanding their cell phone networks for several years, investing billions in the process. Data demand has been rising for a long time, as consumers stream more and use other data-intensive applications while on the move. Coverage has improved, but dead spots or poor connections remain a nuisance in some places./wdw/DP/jha