Statement on PT Comunicações, S.A.’s 2001 cost accounting system for the Fixed Telephone Service and the Leased Lines Service
1. PT Comunicações, S.A. (PTC) is, since 2000, declared as entity with significant market power in the fixed telephone networks and/or telephone fixed service market, as well as in the leased lines market.
2. In this capacity, pursuant to article 35 of the Regulations for the Fixed Telephone Service Operation (RESFT - DL 474/99, of 08/11) and of article 29 of the Regulations for the Public Telecommunication Network Operation (RERPT - DL 290-A/99, de 30/07) PTC, during the 2001 financial year, is obliged to put in place a cost accounting system appropriate to the application of the foreseen tariffs principles, respectively in article 34 of RESFT and in article 28 of RERPT.
3. Pursuant to the same articles 35 of RESFT and 29 of RERPT it was the responsibility of ANACOM, respectively, to declare every year compliance with the followed cost accounting system and to approve this system.
4. In addition, pursuant to the Concession Agreement, both in the version prepared in accordance with the Concession Bases approved by Decree-Law no. 40/95, of 15/02, and in the current version prepared in accordance with Decree-Law no. 31/2003, of 17/02, PTC must have a cost accounting system appropriate to the application of the fixed tariff principles, being the responsibility of ANACOM to approve the methodology used in the implementation and use of the system and to verify and declare its compliance (article 18 of the Concession Bases ? Decree Law 31/2003, of 17/02).
5. Whereas:
a) in December 1996, and after definition of the general principles, by ICP-ANACOM, to be considered in PT Comunicações, S.A. accounting system, this operator reported officially to ICP-ANACOM to have put in place a cost accounting system within the scope of the Public Telecommunication Service Concession Agreement;
b) ICP-ANACOM promoted audits to the above-mentioned system based in 1996 to 2001 financial years;
c) these audits were made by independent entities to PT Comunicações, S.A.;
d) within the scope of the audit to the 2001 fiscal year, recently finished, a statement of compliance was produced of this system with the applicable regulation provisions, whereby some reserves were mentioned, namely, as to (i) the insufficiency of the support documentation and as to the reduced level of integration revealed by the computer system structure that supports the cost model; (ii) the methodology used in the separation by business areas; (iii) the assets and liabilities separation methodology and (iv) amount of classified costs without a causality evidence;
ANACOM declares that the PTC cost accounting system results for the year 2001, except for the above-mentioned reserves, were produced in accordance with:
a) The rules set forth in paragraph no. 3 of the MEPAT Decision no. 15021/99 (2nd Series) and in article 34 of RESFT, as far as fixed telephone networks and fixed telephone service are concerned; and
b) The provisions contained in article no. 29 of RERPT, as far as leased lines service is concerned.
