Telia abandons automatic increase in home internet speeds
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When ERR announced in June 2024 that Telia Eesti AS would transfer home internet customers with lower speeds to a faster and almost a third (+31%) more expensive package, Telia CEO Holger Haljand justified the closure of lower speeds with a change in technology and an increase in usage volumes: “We have historically stuck with old technologies. We have old copper cables that have been underground for 50 years, we are quietly replacing them and updating the technology,” he said.
Telia increased mobile data prices in 2024, and users were also transferred to a faster and more expensive package. Haljandi promised that Telia had no further significant price increases planned in 2024.
Since January 2025, the media has been feverishly reporting how Telia Eesti AS notified its customers of its plan to automatically increase home internet speeds from January 29 to February 14. Customers were initially promised at least 2 times the speed during a 30-day trial period, initially at the old monthly fee. Still, a new, higher price was to be applied after the trial period. The notice received a lot of attention in the media. It attracted the indignation of Telia customers, as Telia planned to transfer all customers to a more expensive package by default, and they would have had to contact Telia themselves to cancel the service.
The Consumer Protection and Technical Supervision Authority (TTJA) received over 40 complaints about the campaign, after which the TTJA initiated supervision proceedings and concluded that Telia’s plan infringed on the interests of consumers. The authority noted that the communications company must notify the changes a month in advance, but the faster speeds were planned to be activated before the end of the term. TTJA also assessed the justification for the unilateral change of the contract and the clarity of the content of the notice for consumers. TTJA contacted Telia with explanations and proposed solutions. The authority ultimately concluded that the change concerning home internet packages and the trial period contained elements that were unreasonably harmful to consumers and were, therefore, null and void.
Oliver Gailan, Head of the TTJA Communications Department, found no basis for changing the contract in this case. He points out that unilateral changes to the contract are permitted, for example, in the event of an increase in input costs. In Gailan’s opinion, it would be better if the consumer confirmed the continuation of the service at the end of the trial period.
In early February, Telia announced that it would abandon the automatic increase in home internet speeds and allow customers to choose whether they want to use a connection that is twice as fast for half a year for the current price. Telia abandoned both the home internet contract changes and the implementation of the automatic trial period in its original form. The company is changing the terms of the campaign so that customers of the optical network who want to try faster connections on favourable terms must consent. Customers can return to their previous speed and price during the discount period. Telia Estonia Telia’s CTO and Acting CEO Andre Visse admitted that the company made a mistake with its initial approach. Visse told “Terevisioonis” that the idea of changing the contract was to bring down prices and claimed that customers had received the offer well, although he admits that some customers do not want the change. Visse apologised to customers who were disturbed by the offer.
The TTJA imposed new additional obligations on Telia, a company with significant market power, to improve competition in the wholesale markets for communications cable infrastructure and communications network access.
Tele2 CEO Margus Nõlvak criticised Telia’s wholesale price, which he said does not allow other telecom companies to offer competitive prices. Nõlvak pointed out that in Estonia, the wholesale price is calculated on a cost basis, while in Lithuania, it is calculated on a market price basis. Jaak Aab, the Riigikogu Economic Affairs Committee head, agreed that fair competition does not exist in Estonia. TTJA Communications Department Head Oliver Gailan confirms that it is vital for TTJA that there is competition when providing the network.
ÄP writes that Telia’s operating profit (i.e., profit before taxes) in 2024 decreased slightly compared to the previous year, 82.2 million euros (in 2023, it was 87 million). Last year, Telia reduced the number of employees in Estonia by 10% and directed nearly 50 million euros to investments. Although Telia justified the price increase with a significant investment need, in 2024, Telia also paid dividends to its owners in a record amount—80.9 million euros.
ERR also broadcasts an opinion article by TTJA Communications Department Head Oliver Gailan, which presents the current distribution of fixed internet connection market shares: Telia has a 50 per cent market share, Elisa 33 per cent, STV 9 per cent, and all others 8 per cent. Telia has a 42 per cent market share in mobile, Elisa 33 per cent, and Tele2 25 per cent.
I was one of those that received the email. Whilst I am happy to receive an increased speed to try it out, I was shocked that they think they could automatically move me to the higher speed and cost after the trial period without me giving permission. I can see they changed it now so that’s a good outcome that the investigation from the TTJA has stopped this.
Absolutely spot on George. It boggles the mind to think that this type of behaviour would simply be accepted by their customers!