The cost of mobile data declined even further last year, a processing of National Telecommunications and Postal Commission (EETT) data for the first half of 2022 showed. Since 2015, the cost of a gigabyte of mobile data has been steadily declining, which is inversely proportional to the ever-increasing amount of data on offer.

What do the EETT data show? In the first half of last year, total data consumption (via mobile phones, tablets, etc.) amounted to 334 billion megabytes, and telecom providers’ revenues from this volume amounted to approximately 280.7 million euros. This means that between January and June 2022, the cost per GB was €0.84, recording a slight decrease (-3.5%) compared to the second half of 2021, when it rose to €0.87. However, the deviation compared to 2015 is much larger. At that time, 8 euros was required to buy 1 GB, since data consumption slightly exceeded 36 billion MB, the revenue of providers from which amounted to 291.8 million euros. The decline in data costs is also confirmed by the ELSTAT Communications CPI, which fell 2% between November 2022 and November 2021.

In Western Europe, according to the research of the British company (based on list prices, which may be lower than the final prices after discounts and special offers), the estimated cost of a gigabyte for 2022 is 2.6 euros. The cheapest countries include Italy (€0.12), France (0.23), Monaco (0.23) and Spain (0.60).

In the first half of last year, the cost per GB was €0.84, compared to €8 in 2015.

Decreasing data prices appear to be reducing providers’ profit margins. As Vodafone Greece CEO Haris Brumidis said at a press conference a few weeks ago, the inverse proportion of prices to double-digit inflation has increased costs for providers. Significantly, as he noted, for Vodafone due to the energy crisis and inflation, additional costs last year exceeded 60 million euros. He added that telecommunications companies’ business is energy-intensive, as energy costs rise as data usage increases, despite companies’ efforts to save energy.

In addition, the cost of materials used in optical fibers has increased by 70% over the past twelve months, while the increase in prices, according to the CEO of Vodafone Greece, may affect the investment programs of companies. At Vodafone, mobile data traffic has grown by 6,500% since 2012, while average revenue per user (ARPU) has fallen by 57% and 40% across contracts and all Vodafone users, respectively.

Against this backdrop, this year’s focus is on where the tug-of-war will lead to inflationary pressures, high energy costs and possible further price de-escalation. The upward fee adjustment will be offset by lower data costs, according to industry players, to keep companies from laying off staff and cutting back on their investment plans.