Telefonica raises its tariffs to offset slowdown (Spain)According to a report, Telefonica is raising its tariffs and scaling back promotions in its key Spanish market in order to counter a drop in consumer spending amid a slowdown in Spain’s economy. Company Spokesman said that Telefonica began charging fixed line subscribers US$0.73 per month for caller ID in July.Though the company was offering this service free of charge. Earlier, Telefonica said some of its promotions would stop counting toward the US$13.2 minimum monthly expenditure the company levies on mobile customers.
Report reveals that, Spanish consumer association Facua filed a complaint to the Spanish government questioning the legality of the caller ID charge. According to the Facua spokesman, the increase already affects 2 million customers, and will affect another 6 million in October. Telefonica anticipates that caller ID charge could boost its revenue by US$70.4 million a year. Report further said that in spite of stronger growth in Latin American and European markets, in Spain Telefonica is facing nearly stagnant revenue growth. In the second quarter of 2008, Telefonica Spain’s revenue rose 0.8% to US$7.6 billion.
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