3.5. Retired persons and pensioners


The methodology for calculating CLSU refers that the net cost resulting from this offer corresponds to the value of the discount associated to the US pricing for “Retired Persons and Pensioners”, taking into account the effect of price elasticity of demand. The determination of 25.11.2011 approved the value of the price elasticity of demand for the purpose of the calculation of CLSU associated to retired persons and pensioners.

MEO’s approach consists in obtaining an average monthly number of “retired people and pensioners” in each year on the basis of annual information contained in its financial records at the level of the total invoicing associated to “retired people and pensioners”.

This approach has been accepted by ANACOM in the scope of previous audits.

In the scope of the decision on the methodology for calculation of CLSU for 2014, no amendments were made to how calculations were made, having been established that the full costs allocated to retired persons and pensioners must be taken into account in the FTS component.

AXON’s Audit Report

The audit report describes the approach adopted by MEO and mentions that the calculation of CLSU for 2014 took into consideration accounting values and operational data for the first five months of the year.

Auditors conclude that the approach followed by MEO and its adjustment for 2014 is consistent with the methodology established by ANACOM, whereby AXON has not found situations to report in terms of verification of calculations or review of inputs.

Line taken by ANACOM

Taking into account the conclusion presented by AXON on the consistency of the approach followed by MEO with the methodology established by ANACOM, it is deemed the process followed is in compliance with ANACOM’s determinations.