Market monitoring


Studies conducted

With the aim of acquiring improved and enhanced knowledge of the various issues comprising the electronic communications sector, ICP-ANACOM has carried out various studies, compiling information which is useful to regulation of the sector. The most important studies in 2010 were:

  • Studies on quality service

To provide consumers, as well as operators and service providers, with information, several studies were conducted in 2010 on quality of service (QoS) in the context of the land mobile service. These studies sought to evaluate levels of service actually provided by Optimus, Vodafone Portugal and TMN and focused on the QoS of message services (text and multimedia) and on the actual performance of these operators in providing voice calls and video telephony on mainland Portugal (the main urban centres and along main roads). In addition, and in the context of complaints from local authorities, other studies were conducted on QoS examining voice, data and coverage in different locations 1. These evaluation studies were carried out through the analysis of technical parameters, constituting a very good approximation to the actual quality perceived by the consumer.

For the fourth consecutive year, ICP-ANACOM performed an assessment of the quality of fixed and mobile broadband Internet access services in Portugal from the user's perspective.

  • Study on the deployment of NGA

Next Generation Access Networks (NGA) support the development of the information society and employment growth, and will also make it possible to fulfil the exponential increase in demand for bandwidth by citizens and companies stemming from the mass take-up and growing sophistication of services, applications and "phenomena" with social and economic interest at various levels. NGA will also to contribute to a reduction in CO2 emissions.

Taking into account the need to develop knowledge about these networks and keep that knowledge up-to-date, a new study on the evolution of the NGA was initiated in 2010 and published in February 2011. This study included a survey of the applicable regulatory framework and a social and economic impact analysis; it also looked at fourteen international case studies, technological solutions, the possibilities of wholesale access including unbundling of fibre and the different competitive strategies and offers in Portugal 2.

The study concluded that the key factors in the deployment of NGA were related to the role of the state, intervention by the NRA, the strategy of operators and conditions of demand.

In Portugal there is a strong operator dynamic, determined and consistent regulatory action and a range of state incentives for the development of NGA.

In the cases studied, the role of the state can be seen: (i) in the guarantee of transparent legislation which is conducive to investment in NGA throughout the territory, while ensuring that operators obtain a return and ensuring conditions for sustainable competition; and (ii) in its active participation NGA deployment by supporting investment and through direct investment, particularly in rural and more remote regions.

Especially in the EU, and through a transparent, stable and predictable regulatory environment based on the implementation of the EU framework and the market analysis process, the intervention of the NRA guarantees a framework which supports investment throughout the national territory and the development of healthy competition.

Government and regulatory initiatives in Portugal have driven operator investments, with over four million dwellings cabled with high-speed accesses (70 percent of them with EuroDOCSIS 3.0 or equivalent and the remaining 30 percent with optical fibre).

Even while the majority of investment has been focused so far on the more densely populated coastal regions, it is expected that NGA concessions in rural areas will soon help strengthen national efforts towards digital inclusion.

It is expected that NGA will contribute to the creation of a significant number of skilled jobs in Portugal, in addition to temporary jobs as the infrastructure is deployed.

  • Study on provider switching

Given the importance of the issue in optimizing user benefits, the ability of residential consumers to switch electronic communications service provider, particularly with regard to the MTS, FTS, IAS, STVS and bundles of services, was also studied.

Generally, and notwithstanding the particularities associated with each of the analysed services, there is less of tendency among customers of a more advanced age group to switch providers compared to customers of younger age groups.

A trend was also identified among customers with higher levels of education to switch providers more often (except in the case of the MTS).

When it comes to switching provider, the behaviour of Portuguese consumers was not found to differ significantly from the behaviour of other Europeans consumers. In fact, for all the analysed services, less than 50 percent of respondents in Portugal and the EU have made an attempt to change service provider.

  • Study on the evolution of the quality of the Internet in Portugal

The main objective of this study was to evaluate the evolution of speeds and of average latency in fixed residential and mobile broadband access in Portugal between 2007 and 2010. The study also provides a comparison of speeds and latency by Portuguese districts and in the autonomous regions of Madeira and the Azores, also contributing to an internal reflection on alternative ways of measuring quality of service.

The study quantifies average growth in speed and latency of broadband access in Portugal and in different regions 3 and municipalities of the country, with results broken down by residential fixed accesses and mobile accesses.

In general terms, between May 2007 and mid-July 2010, average fixed residential Internet access upstream and downstream speeds nearly quadrupled, while average latency more than halved.

Over the same period, average mobile access downstream speeds tripled while average upstream speeds increased by a factor of 5. Average latency decreased.

Between 2007 and 2010, although there was a general increase in speeds across all regions and municipalities in the country, territorial differences also increased. This may be explained partly by the fact that some municipalities and regions include areas with greater competition and therefore higher speeds.

In the future, in light of concluded and ongoing investments in NGA, it is expected that the growth reported in average speeds associated with fixed access lines will continue to be impactful. In terms of mobile access, there is also expected to be an increase in average speeds, due to the increased coverage of HSPA+ mobile networks and with the introduction of LTE.

  • Study on the offer of electronic communications services in bundles of services

Provision of services as a bundle is growing in importance; as such, ICP-ANACOM conducted a study on the subject with a view to ascertaining the factors driving take-up of these offers, the means of measuring the phenomenon and its impact on the market. In fact, the offer of bundles of services, together with increased competition and the convergence of services, have given impetus to electronic communications markets, enabling provision of a wide range of new options. Currently, this type of offer is at the forefront of consumer preferences, achieving significant penetration in Portuguese households - according to various sources, about one third of households had a bundle of services as at the end of 2009 -, driving expansion of the broadband market and helping to reverse the trend of fixed telephone access disconnection, which was evident in Portugal a few years ago. In 2009, triple-play bundles obtained the most sales.

Consumers can be divided into two groups according to their characteristics: (i) those who do not have a bundle of services or who have a bundle that does not include broadband; and (ii) consumers who have a bundle of services with broadband (double-play or triple-play bundles). Compared to the first group, the second group appears to be younger and more educated, comprising people of a higher social class and more likely to be employed.

Finally, in order to better illustrate the current reality, the study discusses the opportunity of revisiting the definition of bundle of services adopted by the European Commission and the indicators used in the analysis of bundles of services (new subscriptions and disconnection rates associated with each bundle of services and the inclusion of Mobile IAS statistics).

  • Studies on the postal sector

ICP-ANACOM conducted a study entitled "Comparison of prices of Universal Postal Service providers in the European Union in 2010". The study is available on ICP-ANACOM's website. This study, which is conducted on an annual basis, provides a comparison of prices based on current exchange rates and also based on purchasing power parity (PPP).  It also tracks developments over the past three years and includes a systematic comparison of the prices of the most commonly used postal services within the scope of the universal service, as provided by the USP in each of the Member States of the EU.

Finally, ICP-ANACOM took in part in two EC studies: "Main developments in the postal sector 2008-2010" (mentioned above), developed by Copenhagen Economics, and "External dimension of the EU postal acquis" conducted by WIK Consult and James I. Campbell.

  • 2009 Inquérito ao consumo dos serviços de comunicações electrónicas (Electronic Communications Services Consumer Survey)

ICP-ANACOM compiled, analysed and published the results of the 2009 Electronic Communications Services Consumer Survey. The issues examined included access and barriers to access of various electronic communications services, consumer profiles, choice of provider and provider switching and customer satisfaction.

Meanwhile, on its website, ICP-ANACOM published the 2009 ECSI Portugal Study - National Customer Satisfaction Index, covering the communications sector, and in particular, the fixed and mobile network services, the Internet access service (fixed and mobile), the subscription television distribution and the postal service. This part of the study was sponsored exclusively by ICP-ANACOM.

  • Identification and characterization of the principle nodes and routes of international traffic flow between the mainland and the Autonomous Regions

This study was completed at the end of the first half of 2010. The first part, relating to communications between Mainland Portugal and the Autonomous Regions, including intra-regional communications, was completed in the previous year. The study involved fieldwork visits to key sites in Mainland Portugal, the Azores and Madeira, preparation of questionnaires and direct contact with those responsible for the relevant infrastructure.

The study accomplished the proposed objective of identifying and characterizing the principle nodes and routes of international traffic flow between the mainland and the Autonomous Regions.

Together with the results of other ICP-ANACOM initiatives, its conclusions and recommendations provide a prospective view as to the strategic actions to be undertaken in the context of communications security.

In the context of this study, an assessment was made of the impact of a possible double fault in the submarine cable connection between these Regions and Mainland Portugal, with subsequent analysis due on the implementation and testing of an appropriate contingency plan.

In addition, ICP-ANACOM gave support to an initiative of the Government of the Azores, through the Secretaria Regional da Ciência Tecnologia e Equipamentos (Regional Secretariat for Science, Technology and Equipment) to develop a pilot project in the area of communications for data recovery in crisis or disaster situations.

  • Identification and characterization of interdependencies between the infrastructure of the State's private networks and the infrastructure of public electronic communications networks

ICP-ANACOM conducted a study on this subject seeking, as a follow up to MOPTC order no. 16025/2009 of 2 June, to analyze the factors which, being beyond the control of the entity that oversees the management of the network and respective services, could compromise the security objectives of the network and the services provided thereon, particularly in terms of availability, integrity and confidentiality. ICP-ANACOM also examined interdependencies and their impacts including of an organizational, physical and operational nature and in terms of interconnection.

The methodology defined and adopted considered three main stages, over which it was intended to ascertain the extent to which the guarantee of continuity of services provided by the State, in this case through its private networks, is dependent on public electronic communications networks and services. Relevant information was compiled through various means and was systematized according to the defined methodology.

In the final stage, an analysis was made of the key findings obtained in the previous stages of the study and a set of recommendations was formulated on how to increase the capacity of Portugal and its agencies in terms of security and resilience of private electronic communications networks, in the light of good practice, international standards and reference studies.

  • Evaluation and characterization of the security of communications on public electronic communications networks

ICP-ANACOM conducted a study to evaluate this issue and characterise SCEN - segurança nas comunicações electrónicas nacionais (security in national electronic communications).

The main objective was to evaluate the infrastructure and resources of a significant sample of operators and providers of electronic communications services, in terms of network and information security, as well as the policies, measures, practices, plans, means and resources allocated to this issue.

Notes
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1 Specifically locations belonging to the parishes of Escarigo, S.Pedro da Gafanhoeira, Nª Srª de Guadalupe, Piódão, Fajão, Pessegueiro and Pampilhosa da Serra.
2 This study is available on ICP ANACOM's web site.
3 The regions correspond to the districts of the Portuguese mainland and to the autonomous regions, Azores and Madeira.