The reactions to the exorbitant price hikes by operators are growing rapidly! It is being discussed that Erdogan will intervene.

As communication has become a basic necessity like housing and food, the prices set by operators in this field have recently received a great deal of backlash. After the contract period expires, consumers who want to renew their packages are faced with price increases ranging from 200% to 300%.

#OPERATORROBBERY HASHTAG OPENED

Citizens have been organizing on social media for the past 2 days to protest these price increases. Today, the hashtag #OperatorRobbery is at the top of the Turkish agenda on X, and users expressed their reactions to the price increases by sharing the price increases in recent months. One user stated that despite getting a similar package, their bill has increased from 162.7 lira to 640.5 lira this month. So, this user has paid a bill in August that is exactly 294% higher compared to 2 months ago.

FROM 188 TL TO 570 TL

The reaction to operator price increases is not limited to social media. Complaints about "exorbitant price increases" are increasing on complaint websites. A user on Sikayetvar.com emphasized that they have been a Turkish Telecom mobile user for a long time and stated, "For my fixed billed line, which used to cost 188 TL, there is an increase of 1765 TL and it is said that it will be reduced to 570 TL as if it is a favor. What kind of ethics is this?"

"WHICH INDUSTRY HAS MORE THAN DOUBLE THE PRICE INCREASE"

Another user on the same website, who stated that they use a Turkcell billed line, complained, "The current version of my package, which used to cost 240 lira, is offered at 600 lira. Can such nonsense be possible? Which industry has more than double the price increase? If you don't help, I am considering closing my line."

COMMITMENTS ARE GIVEN FOR 12 AND 24 MONTHS

In Turkey and around the world, many consumers prefer committed packages in order to avoid being affected by price increases and to pay relatively lower subscription fees under current conditions. Companies also benefit from the system as they guarantee their income. Commitments are generally given for 12 or 24 months. Since commitments are promises given for the future, calculations should actually be made based on inflation expectations for the future. Because when the previous commitment was given, companies set a price by taking into account potential cost increases in the future.

INFLATION EXPECTATION FOR 24 MONTHS IS 18.38%

Looking at the Central Bank of the Republic of Turkey's September survey of market participants, it can be seen that the market's inflation expectation for 12 months ahead is 27.49% and for 24 months ahead is 18.38%. If these expectations are realized, the 24-month increase in the Consumer Price Index (CPI) will be 50.9%. If we look at whether the realized inflation is reflected in prices, there is no ratio that will explain the price increases.

PROFIT INCREASES OF 82.5% AND 137.7%

Operators that have made high price increases continue to make huge profits. Turkcell's net profit increased by 82.5% in 2023 compared to the previous year, reaching 12 billion 532 million lira. In the first 6 months of 2024, it announced a net profit of 5 billion 760 million TL. Türk Telekom's net profit also increased by 137.7% in 2023 compared to the previous year, reaching 16 billion 422 million lira. As can be seen from this, the commitments made in advance did not harm the profitability of the companies.

ERDOĞAN MAY INTERVENE

Meanwhile, it is claimed that President Recep Tayyip Erdoğan will take the initiative and intervene in the issue following the exorbitant price increases made by GSM operators.