The universal service of electronic communications has enabled provision of a range of services which are available to all end-users, regardless of their geographical location, ensuring accomplishment of appropriate quality standards and provision at affordable prices subject to regulatory control, with increases capped at below the rate of inflation.
As such the universal service has been an important factor in achieving info-inclusion, economic development and social welfare, and has also provided a guarantee that every citizen has the means to fulfil their most basic communication needs in a liberalised and competitive environment.
It is therefore of paramount importance to ensure the continuity of universal service provision with economic and technical efficiency, which means that the underlying services are made available at the lowest possible cost, while maintaining the levels of quality of service and evolution in pricing reported to date. For such purpose, it is important, from time to time, to examine the possibility of alternative forms of providing the universal services, while at all times maintaining utmost respect for its characteristics. Under the terms of Law no. 5/2004 of 10 February, as amended by Law no. 51/2011 of 13 September - LCE - Lei das Comunicações Eletrónicas (Electronic Communications Law), which transposes Directive no. 2002/22/EC of the European Parliament and of the Council of 7 March, as amended by Directive no. 2009/136/EC of the European Parliament and of the Council of 25 November - it is made incumbent upon the Government to instigate the process of designating the provider or providers of the univers
al service, guaranteeing that this process is effective, objective, transparent and non discriminatory, while ensuring that no company is barred from such designation at the outset.
As an issue of paramount importance for society in general and having important impact in the field of electronic communications, the Portuguese Government has seen fit to submit the documents to be adopted in the execution of this designation to the public consultation procedure. It does so with the premise that these may benefit from widespread commentary, in terms of finding the best way of accomplishing the objectives which have been put forward.
The approach to be used in selecting one or more universal service providers is to designate providers which, while ensuring quality and the evolution of the prices specified in the documents now submitted to consultation - having as reference the current levels of quality and evolution of prices stipulated to date - deliver lower net costs in providing the services in question, or, in the case of directory and information services, secure the highest levels of revenues for the Portuguese State. That is, the providers which will be designated will be those which, being more efficient: a) require a lower level of funding to provide services to areas or citizens which, because they generate insufficient revenues to cover the costs of providing the services used, would not, under normal conditions, be sufficiently economically attractive to warrant service, or b) in the specific case of directories and information services, those that offer a higher level of revenues in return for providing the universal service.
With this approach, the Government is seeking to achieve two objectives simultaneously: i) to maintain the level of universal service provision, both in terms of quality and pricing, which since 2003 has been kept down to 2.75% below inflation, and ii) to maximize efficiency in the provision of these services, as reflected in the reduction of costs incurred in their delivery.
To further enhance this combination of goals, and under the terms of the law, the process of designating the universal service provider(s) needs to attract the largest number of applicants, while adhering to the principle of technological neutrality. As such, in order to encourage participation in the selection process by the maximum number of entities, the Government chose to split the process into several components. On the one hand, this is done from the perspective of services provided, through the creation of three separate tender procedures covering each one of the provisions of universal service referred to in article 87 of the LCE; on the other hand, the process is split along geographical lines through the creation of three distinct regions (lots) for two of these procedures (provision of a public communications network at a fixed location and of a telephone service through that connection and the provision of public payphones). As such, any barriers to participating in the selection process should
be reduced, thereby increasing levels of response.
Meanwhile, two aspects of the services covered by the concept of universal service need to be highlighted.
The first is that so-called functional access to the Internet, inherent to connection to an electronic communications network at a fixed location and foreseen in the documents now under the public consultation, corresponds to the characteristics of the offer which is currently comprised by the concept of universal service, i.e., connection enabling transmission speeds of 56 kbps. This remains an open matter, and so it is important that contributions are presented in this area, particularly as to whether the market can provide higher data rates, particularly in terms of broadband offers, without recourse to the specifications of the universal service and thereby without additional cost to the electronic communications sector. A final decision in this area will be taken with consideration to the results of the public consultation, as well as to the opinion to be issued by ICP-ANACOM pursuant to paragraph 4 of article 88 of the LCE, which will take the views expressed in this consultation into account.
The second aspect concerns the inclusion, in the same lot, of information services and telephone directories. This option was taken on the grounds that it does not obstruct the goal of reducing barriers to participation by applicants in the tenders. However, in the event that different opinions are expressed and properly reasoned, this matter will be reconsidered.
In addition, and since the process of designating the universal service provider(s) will lead to the conclusion of a contract or contracts with the designated undertaking(s), it is important that interested parties give their views as to the format and content of said contract, particularly in light of the provisions of the tender documents.
It should also be noted that the designation of universal service provider(s) through the selection process under consultation is to be preceded by the definition of the mechanism by which compensation is made of the net costs of the universal service, in particular the conditions under which the compensation fund, as referred to in paragraph 1, point b) and paragraph 2 of article 97 of the LCE, will be implemented. The Government, after consulting ICP-ANACOM, will decide on this matter in due course. This approach ensures the continuity of the universal service in a manner whereby the costs of its provision are self-financed, without recourse to public funds.
The documents now submitted to public consultation, as well as encapsulating the Government's approach to designating the universal service provider(s), also set out the conditions that embody the essential components of the provision which the undertaking(s) designated for this purpose will be charged with undertaking. These conditions are described in terms which are consistent with the determinations taken by ICP-ANACOM in these areas, in proposals of the regulator or in the practice associated with provision of universal service.
However, the exercise of the powers conferred upon ICP-ANACOM by the LCE in this area must be properly ensured, while respecting the Regulator's independence. As such, as National Regulatory Authority, the LCE gives ICP-ANACOM authority to define and effect a set of characteristics of universal service provision, in order to enable adoption of the most efficient solutions and the solutions which are most appropriate for ensuring implementation, minimizing the market distortions which may result from the provision of this service, which procedure must, under the same law, be preceded by general consultation.
To simplify the process of designating the provider of the universal service, and to speed up the process, it was decided to launch the present public consultation procedure with inclusion of the draft regarding the conditions of the offer set out by ICP-ANACOM in the specifications of the three tenders.
As such, pursuant to Tender 1 - Connection to a public communications network at a fixed location and provision of a telephone service through that connection, ICP-ANACOM is seeking views from interested parties on:
- Options aimed at ensuring price affordability, as set out in points 1 and 2 of Annex 1 to the tender specifications (Service Specifications), entailing, in particular, requirements of non-discriminations, tariff uniformity, rules on the pricing of monthly charges and calls to the network' of the co-contractor or terminated on other networks and offers, as well as the options set out in paragraph 7 of the same Annex with regard to retirees and pensioners;
- The scope of the obligations set out in point 4 of the same Annex 1 to the tender specifications related to the features of the service to be provided by the universal service provider(s), in which respect the obligations set out under article 94 of the LCE have been maintained;
- The minimum speeds to be supported on the access network to be provided as part of the universal service in order to enable functional Internet access (article 88, paragraph 4 of the LCE) - in accordance with paragraph 5 of Annex 1 - so that, when formulating its position on the matter, ICP-ANACOM might take the views now expressed into account;
- Options in respect of offers to be provided to people with disabilities, in accordance with paragraph 6 of Annex 1 to the specifications, with regard both to the beneficiaries covered and to the offers provided for (article 91 of the LCE);
- The quality of service parameters and performance objectives set out in Annex 2 to the tender specifications (Quality of Service Parameters and Performance Objectives);
- The requirements set out in Annex 3 to the tender specifications regarding data to be submitted to ICP-ANACOM.
With respect to Tender 2 - Provision of public payphones, ICP-ANACOM is seeking views from interested parties on:
- Requirements relating to the availability and characteristics of the public payphone offer, as provided for in paragraph 1 of Annex 1 to the tender specifications (Service Specifications), as well as the limits and rules set out in point 2 of the same Annex as to the totality of public payphones to be installed in each of the areas covered by the tender schedule;
- The large part of the obligations governing the provision of public payphones, particularly as regards sites of social interest where the deployment of payphones is required, forms of payment, obligations with regard to publicising available services and requirements established for removing installed payphones in accordance with point 2 of Annex 1, the establishment of which is incumbent upon ICP-ANACOM pursuant to article 90 of the LCE;
- The requirements set out in paragraph 3 of Annex 1 of the tender specifications in order to ensure affordability, particularly with regard to requirements in respect of non-discrimination, geographical uniformity and pricing rules;
- The wholesale conditions set out in paragraph 4 of Annex 1 to the tender specifications;
- The quality of service parameters and performance objectives set out in Annex 2 to the tender specifications (Quality of Service Parameters and Performance Objectives);
- The requirements set out in Annex 3 to the specifications with regard to data to be submitted to ICP-ANACOM and requirements in respect of the publication of the information indicated in paragraph 5 of Annex 1.
With respect to Tender 3 - Provision of a comprehensive telephone directory and a full directory enquiry information service, ICP-ANACOM is seeking views from interested parties on:
- The requirements set out in Annex 1 to the tender specifications (Service Specifications), concerning the form and conditions of provision to end-users of directories (point 1), as well as information to be compiled from telephone service providers, as foreseen in point 2, the information to be made available in the telephone directory in accordance with point 3 and also the ways in which the obligations of providing directory information lists are defined in point 4;
- The obligations set out in point 5 of Annex 1 to the tender specifications regarding the inclusion of advertising in telephone directories and information services, as well as the requirements set out in paragraphs 6 and 7 of the same Annex regarding the publication and free availability of the comprehensive telephone directory, the terms governing the setting of remuneration levels in respect of the provision of a full directory enquiry information service, and also the obligations regarding offers to be provided to people with disabilities;
- The quality of service parameters and performance objectives set out in Annex 2 to the tender specifications (Quality of Service Parameters and Performance Objectives);
- The requirements set out in Annex 3 of the tender specifications with regard to data to be submitted to ICP-ANACOM.
The present consultation shall remain open for a period of 30 working days. Responses should be sent, identified with "Consulta Pública sobre a designação do(s) prestador(es) do serviço universal de comunicações eletrónicas" (Public Consultation on the designation of provider(s) of the universal service of electronic communications) to ICP-ANACOM, Av. Jose Malhoa, no. 12, in Lisbon, or by email to consulta-prestadorsu@anacom.ptmailto:consulta-prestadorsu@anacom.pt. Any items which are included in responses and which are considered as confidential should be properly identified as such.
Taking into account the contributions which it receives, ICP-ANACOM will: a) approve the duly reasoned formulation of the decisions stemming from the powers and responsibilities conferred upon it under the LCE in this respect, b) prepare a report on the public consultation in areas related to the competence of the Government, which report it will send to the Office of the Secretary of State for Public Works, Transport and Communications, in order that a final decision may be taken on this matter with due consideration to the views compiled in the meantime.
