Latvia and Lithuania have literally the cheapest telco services in Europe. It's no surprise that we have to pay a bit more now. Yes, we lose this time, but for the rest of the Europe it's a huge win.
How much is it exactly? I thought you can't beat Free's prices in France with 2€/mo for 1h phone and unlimited text, and 20€/mo for everything unlimited : phone/text/4G.
Since they showed up all other telcos in France had to adjust and offer around the same, around 25€ max instead of the usual 60€ to 80€ they'd offer before Free.
Lithuania: Phone plans aren't that cheap, I assume because there are only three main operators and they don't really make much money. People here don't have money for the latest iPhone which you would pay €60+/mo for, so their main source of income is service plans. Typically contracts are sold without a phone, and I'd say people would spend on average, under €10/mo. That would get you unlimited calls and texts and a few GB of data. Prepaid plans are usually a bit cheaper, I currently (a special offer for a few months) pay €3.99/mo for unlimited calls and texts and 1.5GB data.
I also have a portable 4G hotspot with unlimited data (I've used around 50GB this month) for €4.90/mo, including rental of the device. It's limited at 6 Mbit but that's fine for my needs (you can pay more for up to 25 Mbit). However the main reason why it's so cheap is because it's from a smaller operator, so you only really get coverage in big cities and even then it can be patchy (like Three when they first launched in Europe).
Home internet is a different story though. I pay €9.90/mo for unlimited 100/100 FTTH, and I can get up to 1000/1000 for €19.90/mo - downloading a 6GB Steam game in under 10 minutes seems fast enough though. In 2015 home broadband coverage (>= 30 Mbit) was 99%, with 62% of subscribers on fibre [0].
Germany I'm paying 19 EUR/month with a phone included. No limits on phone calls within Germany (fixed and mobile), but I pay for each SMS sent and only get 2Gb of data.
Oops, just saw this question now. I've registered with https://www.otelo.de/ after seeing their publicity on TV two years ago and they still seem to have available these promotions.
They have several phone models to choose. You pay 1 EUR for most models from Samsung or Sony, a bit more for the deluxe editions (iphone and sorts). Now they even offer more because SMS are free and I still pay extra for each one, but doesn't matter because I simply use other messaging apps.
The Sony Xperia models are good, they're waterproof by default and resistant to shocks, albeit camera is crappy (compared to normal Samsung models)
I pay 12 Eur for unlimited calls/sms within Germany; 3 GB data; w/o phone; w/o contract term (it can be canceled any time); 100min and 100MB free in other EU countries.
They exist. Even prepaid options are getting cheaper. Take a look at discounter offers (Aldi, Lidl etc). Though don't expect great network coverage on the countryside...
It was costing less, now it is a bit more than you say. I think this law forced cheaper operators to make deals with all the other country operators, no one was going to decrease prices, so in the end we got the maxed out price.
You win in the aggregate, because Latvian and Lithuanian exporters and importers now have less friction when traveling. Likely a rise in trade, leading to more company and tax revenue, leading to higher employment.
My telco cancelled roaming on data-only plans altogether in reaction. Such a huge win.
Virtual operators, who don't get any roaming income, still have to pay high roaming fees to other telcos and now can't even charge their expenses to customers are basically screwed and have to increase prices. Such a huge win.
Yeah, Lithuania and Latvia receive a lot of cash from the EU to upgrade their infrastructure. It's not all black or white, but this doesn't seem like a big issue when you see the support the country received.
That "support" (I.e. Donations) goes to politically well connected companies, burns some 20% on well-connected middlemen and has to be co-funded. Some first hand experience with how harmful and ineffective the donations are would do you good.