Andorra Telecom Updates Debt Recovery with Digital Focus

Andorra Telecom issued an average of 67,000 bills each month to its customers last year. Of these, 1.4%—or 938 bills on average—were returned unpaid by users. The company recovers most of these quickly: 85.4% within eight days, dropping to around 0.12% of the total (about 80 bills) after 20 days.

In this context, the state-owned telecom provider has updated its debt recovery process, replacing a system in place since 2012 with a more efficient, preventive model aligned to internal operations. The new rules took effect at the start of this year, aiming to speed up claims, curb excessive usage, and reduce outstanding amounts.

Key changes prioritise digital notifications for unpaid bills via email, SMS, or the company's app. The procedure also eases conditions for economic deposits required from customers with prior debts who seek new services or wish to lift restrictions, such as those from overconsumption. These deposits ensure payment of obligations tied to service contracts or maintenance.

The company now returns such deposits after two years, down from three, provided users pay on time without bank returns. The deposit amount is set at twice the average billing over the previous six months, with a minimum of €120 and no upper cap of €500 as before. Customers who have paid punctually for the past 12 months are exempt. For temporary services or foreign direct debits without a local bank account, the deposit covers the full service cost. Services paid by third parties can also face restrictions or blocks if debts are linked to the contract holder.

Debt repayment has become more flexible, with instalment plans now extending up to 12 months, compared to six previously.

Andorra Telecom emphasised its rigorous internal management in keeping default rates low, citing the sharp drop to 0.12% after 20 days as evidence supporting the overhaul.