Senior Reporter
peter.christopher@guardian.co.tt
Cable and internet subscribers will once again face the possibility of digging deeper into their pockets, after both Digicel and Flow informed customers yesterday of price increases that will take effect from June.
In a notice to customers, which has been posted on its website, Digicel said, “As part of our ongoing efforts to maintain the quality and reliability of your Digicel+ experience, we must adjust the pricing of certain products within our portfolio, as well as roll out new service packages starting from June 1, 2024.”
Digicel said the decision to raise prices was influenced by the increased costs incurred by the company as a result increased bandwidth demands for international streaming services.
Digicel said, “Due to increased content costs from our international suppliers and the growing expenses associated with off-island internet traffic, primarily fuelled by the rising usage of Android TV boxes, Netflix, and other over-the-top (OTT) services, our network faces additional strain. Therefore, we’re compelled to implement adjustments accordingly.”
The company confirmed the plans that were impacted included:
The Fibre 200 (from $305 to $320)— +4.91%;
Modern Fibre 200 ($325 to 340)— +4.61%
Modern Fibre 200+ ($390 to 410)— +5.12%%
However Digicel did also announce price reductions for:
Fibre 350 ($745 - $445)— -40.26%;
Fibre 500 ($885 -500)— -43.50%;
Modern Fibre 350 ($745 to $465)— -37.58% and
Modern Fibre 500 ($885-$600)— -32.20% packages.
Digicel said concerning those reductions, “We recognised that we didn’t offer our customers affordable access to higher internet speeds. With these price changes we aim to address this.”
Flow, which in March announced price increase for select packages beginning April 1, was more nuanced in its notice.
The company said in a notice to select customers, “At Flow, like most other companies across the country, we are faced with rising operational costs that continue to put additional economic pressure on us. Despite our best efforts, we are faced with increasing prices.
Effective June 1, 2024, the monthly subscription for your Flow package will increase slightly by 5 per cent.
This adjustment will enable us to continue investing in the necessary improvements to enhance your overall experience.”
The packages affected by this increase are the cable and internet bundle packages:
Everything You Want ($555 to $583)— +5.04%;
Everything You Want Boost It (up to $625) and
Everything You Want and More ($645 to $677)— +4.96%;
Flow also announced an increased to its 1 Gb internet package to $892.50.
Both Digicel and Flow also announced price increases last year.
Recently, the Business Guardian reported that streaming services including Netflix and YouTube commanded a significant chunk and bandwidth from local providers, and its adverse effect on local telecommunication providers due to the lack of returns to the Caribbean from these services despite rising revenues earned from the region.
Since 2023, regional operators including Digicel and TSTT have lobbied for fair share from big tech companies Meta (Facebook, Instagram and WhatsApp), Alphabet (Google), TikTok, Netflix, Amazon and Microsoft who are responsible for 67 per cent of the total internet traffic in the Caribbean, while making no contribution or investment to local delivery networks.