Telia: Our fast internet offer was meant to lower prices

Telia's fast internet default contract change – which increases the speed and raises the bill – was actually supposed to lower prices, said the company's Chief Technology Officer Andre Visse. But the Consumer Protection and Technical Regulatory Authority (TTJA) believes it is legally questionable.
Last week, Telia informed customers that starting from late January to mid-February, they would be automatically upgraded to an internet package twice as fast as their current one.
Customers could use the faster package for the first 30 days for the same price as their current package, but after that, they would automatically be charged a new higher rate.
No permission was sought from customers, they were simply informed the change would take place. If they did not want the new package, customers were told they must contact Telia themselves.
Asked how many customers the company had lost over the past few days, Visse intially said did not answer the question directly on Thursday morning's "Terevisoon."
"Quite the opposite. We've received a lot of feedback from customers saying they really like and appreciate our offer. Most customers are happy to accept it. A small portion of customers have politely informed us that they don't want the offer. We've promptly withdrawn the offer for them, so they retain their original speed profile and price. It really doesn't obligate them to anything," Visse replied.
It was pointed out that after a month, contract prices would rise by around €5.
"But the whole idea behind this offer was actually to lower prices," Visse said, reiterating they would drop significantly for higher speeds.
"For instance, we've often heard that ultra-fast internet in Estonia is expensive. With this gigabit-speed internet, we're lowering the price from €73 to €55. Additionally, we're eliminating the 300 Mbps tier, moving customers to 400 Mbps at the same price, which means we're providing 25 percent more value for the same price. Overall, most price points are becoming cheaper for people, and customers are gladly accepting these offers," he told the show.
TTJA's Gailan said the agency can see problems because there was no clear basis for changing customers contract.
"Unilateral contract changes are completely permissible, but there must be a basis, such as rising prices, increased input costs, or technological changes," Gailan said.
"Another issue is that customers are being required to inform the company if they don't want the offer. It would be much better if the customer had to confirm continuation of the service at the end of the trial period," he added.
The TTJA representative said the situation raises several legal questions. "This concerns the Electronic Communications Act and the Law of Obligations Act. However, I believe we will discuss these issues with Telia and find a solution," Gailan said.
Visse apologized to customers who were upset by the offer.
"First of all, I must sincerely apologize to the customers who felt offended or inconvenienced by this offer. It is unfortunate that they have to take the small step of notifying us if the offer does not suit them," Visse said.
"We have heavily invested in our digital environments in recent years, and in our self-service system, it is just a single click. It is very easy to manage. Additionally, all our physical channels are open, including the call center and physical stores, where customers can always express their preferences," he added.
Visse also said it is a media myth that internet packages are more expensive in Estonia compared to other countries. At the same time, he said input costs, especially electricity, have increased significantly.
Sweden-owned Telia earned €63 million in net profit in Estonia in 2023. The company paid a record €80.9 million in dividends to its owners, exceeding the amount of investments made by 1.5 times.
"What often gets overlooked is how much we as taxpayers contribute back to the state and society. This amount is many times greater. We are the ninth-largest taxpayer in Estonia. In the last quarter alone, we paid over €20 million in taxes, and over €100 million for the entire year, including various fees and taxes. Our net profit last year was significantly lower, at €60 million. So, to say that we take profits out and send them to Sweden — actually, we contribute much more locally in Estonia," Visse said.
Technology journalist and Telia customer Henrik Roonemaa criticized Telia's approach as unacceptable.
"In my view, you just cannot do something like this: a company sends customers a notification saying they're sending a service, and then tells them to accept it, or if they do not like it, to send it back. Or to contact them if they do not want the price to increase. By the same logic, I can expect that tomorrow Selver could send me a crate of potatoes, saying it is free for now, but if I do not return it within a month, they will send me a bill retroactively. You cannot just do things this way. And while faster internet is great, forcing it on people like this is incredibly distasteful," he said.
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Editor: Aleksander Krjukov, Helen Wright
Source: Terevisioon, interview by Katrin Viirpalu