6. Conclusion and Determination

Whereas:

a. In accordance with paragraph 4 of article 96 of the LCE, on 09.06.2011, ICP-ANACOM ordered PTC to present the preliminary calculation of CLSU;

b. On 28.11.2011, PTC submitted CLSU estimates to ICP-ANACOM for 2007, 2008 and 2009, which were subject to auditing;

c. During the audit, on 19.02.2013, PTC sent new CLSU estimates, while the auditors concluded that "in general, the results and calculations reviewed by PTC are in accordance with the principles, criteria and conditions laid down in the determinations of ANACOM, and the data, assumptions and calculations used are sufficiently appropriate"; however, as exceptions to this conclusion, three aspects were cited as having minor to negligible impact on the results and one aspect, regarding the treatment of non-recurring costs and revenues with respect to non-profitable customers in profitable areas, was cited as having material impact on the results;

d. On 20.06.2013, ICP-ANACOM approved a decision on the results of the audit of the CLSU of PTC in respect of the 2007 to 2009 financial years, noting that the CLSU calculation estimates presented by PTC on 19.02.2013 "are generally in compliance with the methodology for calculation of CLSU as defined by ICP-ANACOM, that their distinctive features are duly justified and deemed to be reasonable, and that discrepancies identified, namely at the level of reconciliation of CLSU values with information in the SCA, correspond to situations which were duly justified and which result in the underestimation of CLSU, thus they are without prejudice to other companies, such as those that may contribute to universal service financing, along with PTC itself";

e. In this decision, ICP-ANACOM ordered PTC to re-submit new CLSU estimates for 2007-2009 so as to reflect the final results of the SCA for 2007-2009, and in particular the stipulations of points 1 e) and 1g) of the decision, as regards the consideration of non-recurring installation costs/revenues in an annualised manner and as regards correction to the area model as regards the number of access lines; these estimates were likewise made subject to a new audit procedure.

f. On 28.06.2013, PTC submitted new CLSU estimates for the 2007-2009 period, in compliance with ICP-ANACOM's determination of 20.06.2013, on the results of the audit of the CLSU of PTC for the years 2007-2009;

g. These estimates were subject to new auditing performed by AXON, which had already performed the first audit;

h. This first audit took place between 28.06.2013 and 25.07.2013 and sought to verify, following this decision of 20.06.2013, conformity of the re-submitted values with changes made to the SCA used by PTC with respect to these years and compliance with the stipulations of points 1 e) and 1g) of this decision with regard to the consideration of non-recurring installation costs/revenues in an annualised manner and as regards correction of the area model as to the number of access lines;

i. The auditors concluded that, with the exception of the situations referred to as regards the reconciliation, which may undervalue the CLSU, the values re-submitted by PTC on 28.06.2013 are now in accordance with the principles, criteria and conditions stipulated by ICP- ANACOM;

j. The situations referred to in the preceding paragraph, concerning reconciliation correspond to a situation already reported in the previous audit report; the auditors maintained their view that this may have had the effect of undervaluing the final value of the CLSU, and they also stated that, notwithstanding the situations mentioned, the explanations given by the PTC on the matter, which also appear in the previous audit report, are acceptable for 2007-2009;

k. The determinations imposed by ICP-ANACOM pursuant to the decision of 20.6.2013 had a considerable impact on the final value of the CLSU, providing for an overall reduction in the 2007-2009 period of 6.7 million euros, i.e., to the order of 9 percent.

l. The declaration of conformity issued by Grant Thornton states the following:

"Accordingly, we are of the opinion that, with the exception of the situations described in paragraph 10 above, which may have the effect of undervaluing the CLSU, the reformulated estimates of the net costs of Universal Service provision as presented by PTC for the years 2007-2009 are consistent with the methodology, assumptions and determinations of ICP-ANACOM contained in the Technical Specifications and correspond to the following values:

• Year 2007: 23,584,976.93 euros (twenty-three million, five hundred and eighty-four thousand, nine hundred and seventy-six euros and ninety-three cents);
   
• Year 2008: 20,168,431.93 euros (twenty million one hundred and sixty-eight thousand, four hundred and thirty-one euros and ninety-three cents);
   
• Year 2009: 23,057,573.48 euros (twenty-three million, fifty-seven thousand, five hundred and seventy-three euros and forty-eight cents);

resulting, for the 2007-2009 period, in a total amount of 66,810,982.35 euros (sixty-six million, eight hundred and ten thousand, nine hundred and eighty-two euros and thirty-five cents)";¹

m. The general consultation procedure and prior hearing of interested parties was conducted over 20 working days, in accordance with the provisions of article 8 of the LCE and with articles 100 and 101 of the CPA - Código de Procedimento Administrativo (Administrative Proceeding Code); in response to these procedures, contributions were received from six operators, which were summarized and analysed in the report of the public consultation and prior hearing, which report forms part of this decision;

n. The contributions received pursuant to the general consultation procedure and the prior hearing essentially reiterate the aspects which had already been raised pursuant to the consultation conducted on the draft decision of 11.04.2013;

Pursuant to the powers set out in points b) and d) of paragraph 1 of article 6 of ICP-ANACOM's Statutes, as approved by Decree-Law no. 309/2001 of 7 December, and in the exercise of its powers and responsibilities as set out in articles 95 and 96 of Law no. 5/2004 of 10 February, as amended and republished by Law no. 51/2011 of 13 September, the Management Board of ICP-ANACOM determines:

While taking into account the results of the audit and respective declaration of conformity, to approve the latest accounts submitted by PT Comunicações, S. A., on 28.06.2013, and determine that the final values of the CLSU are those expressed in the following table for the 2007 to 2009 financial periods.