3. Comparison with MEO’s CAS data

Elements concerning DTT costs submitted by MEO on 29 April 2014 are comparable, as a whole, with data already available in MEO’s CAS, notwithstanding the fact that data now received present a higher degree of detail than data available through the CAS.

**Table 16. Costs of the DTT service in 2012**
[BCI]
COSTS	2012
TOTAL COSTS
Total direct and joint costs
Total direct costs
Direct costs of products and services
Direct costs of customer-oriented activities
Direct costs of network-oriented activities
Total joint costs
Joint cost of customer-oriented activities
Joint cost of network-oriented activities
Total common costs

Values in Euros
[ECI]

In the information submitted, and in reply to ANACOM’s request, MEO presents CAS profit and loss accounts, breaking down the various direct and joint costs in depreciations, cost of capital and operating costs. This information is in line with MEO’s (more aggregated) CAS data.

**Table 17. Costs of the DTT service in 2012– details of depreciations, cost of capital, operating costs and common costs**
[BCI]
COSTS	2012
COSTS	Depreciations	Cost of capital	Operating costs	Total
TOTAL COSTS
Total direct and joint costs
Total direct costs
of products and services
of customer-oriented activities
of network-oriented activities
Total joint costs
of customer-oriented activities
of network-oriented activities
Total common costs

Values in Euros

[ECI]

Most costs (in specific, [BCI] [ECI]) concerning fixed asset goods (depreciation for the financial year and cost of capital) are direct costs. As regards operating costs, a significant part ([BCI] [ECI]) is also direct costs. In the total of costs, common costs represent only [BCI] [ECI].

From the analysis of DTT costs concerning fixed assets, using MEO’s classification (of specific goods allocated directly to the DTT product and goods allocated via driver) and operating costs, it may be concluded that fixed asset goods contribute with around [BCI] [ECI] of costs, plus operating costs, which represent [BCI] [ECI] of total costs, and common costs (with a weight by [BCI] [ECI] of total costs).

**Table 18. Costs of the DTT service in 2012 – costs of fixed assets**
[BCI]
COSTS	2012			Percentage of total costs
COSTS	Depreciation for the financial year	Cost of capital	Total	Percentage of total costs
COSTS
Costs of fixed assets
Specific goods (properly allocated)
Goods allocated to the DTT product via driver
Others associated to staff drivers or to activities allocated to other activities

Values in Euros
[ECI]

**Table 19. Costs of the DTT service in 2012 – operating costs**
[IIC]
COSTS	2012	Percentage of total costs
COSTS
Operating costs
Direct costs
Joint costs

Values in Euros
[ECI]

Although fixed asset costs broken down according to the classification presented by MEO do not allow a direct analogy with the various CAS items, the data submitted by MEO correspond in general to total CAS data.

It is further noted that, following ANACOM’s request for information, MEO detected some inconsistencies in the information included in CAS for the DTT service. As such, MEO identified some investment items that were made in the scope of the provision of the DTT service which failed to be assigned to this product (rather to ATT). MEO informs that this correction, due to its complex nature, will only be made when costs for 2013 are drawn up. This aspect must be taken in due account in comparisons and analyses that are made on the basis of CAS income statements for the DTT product, specifically in the context of the cost-orientation of prices relevant for this exercise.

The information now submitted by MEO shows a summary of values concerning specific investments (fixed assets) that were incorrectly allocated to ATT, and which should have been assigned to DTT. In the case of 2012, these “additional” costs amount to around [BCI] [ECI] Euros.

MEO further refers that costs with the contract for Head-End maintenance were not assigned to the DTT service, which represents an annual increase of operating costs by [BCI] [ECI] Euros.

Consequently, to total costs of the DTT service for 2012 presented by MEO (in the CAS) around [BCI] [ECI] Euros must be added, which represents an increase by around 4.8% of total costs already presented.