The present study makes comparisons between the prices for leased linesprovided by PT Comunicações S.A. (PTC) arising from the Deliberation by the Board of Directors of ANACOM of 26/12/02, and the most recent prices charged by the incumbent operators in the other countries of the European Union (EU).
The scope of the international price comparison study was extended so that the overall basket includes prices for 34 Mbps digital circuits, and it is envisaged that future studies shall consider a basket that incorporates circuits with a broader bandwidth, although at the present time the evidence available regarding the prices charged in different countries is limited.
The main conclusions are:
- In Portugal, the price of the overall basket of national circuits (analogue, 64 Kbps digital, 2 Mbps digital and 34 Mbps digital) is 29% lower than the average of the values charged in the other countries of the EU.
- The price of the basket of national analogue circuits is around 8% higher than the average for the baskets offered by the other European incumbent operators. It should, however, be emphasised that these circuits account for a small portion in the overall basket, as a result of the development of electronic communications and of the increased need for bandwidth for business use.
- The price of the basket of national digital circuits (64 Kbps, 2Mbps and 34 Mbps) is around 30% below the average value charged by the EU's other incumbent operators.
- The simple average of prices of international circuits as charged by PT Comunicações is lower than the equivalent average charged by the other operators for 64 Kbps and 2 Mbps digital circuits, by 48% and 30% respectively, and is higher for analogue circuits (+10%).
- The monthly rental of 64 Kbps national digital circuits is between 18% and 38% lower than the average charged within the Community, for 400 Km long and 2 Km long circuits respectively.
- The price of a monthly subscription to 2 Mbps national digital circuits is also lower than the average price charged by the EU's other incumbent operators, and the differences are of between 15% and 38% for renting 400 Km long and 2 Km long circuits, respectively.
- As regards 34 Mbps circuits, the price charged by PT Comunicações is 18% above the average price charged by the other operators considered for a distance of 2 Km. For distances of 200 km and 400 km, PTC's prices are 6% and 10% lower than the average, respectively, and are close to the average for the other distances considered.
- In Portugal, the prices of short-distance circuits (2 Kms) are lower than the average values charged by the EU's incumbent operators, except in the case of 34 Mbps circuits. It should be stated that circuits of a shorter distance account for a greater portion in the basket of national circuits, which is reflected in Portugal's relatively favourable position with regard to the EU average.
- With regard to 400 km circuits, prices in Portugal are also lower than the average for the other countries, except in the case of analogue circuits. It is important to point out that, within a nationwide context, the demand for analogue circuits with 400 Km accounts for a smaller relative portion.
- The following table summarises the main differences in the monthly rental to circuits in Portugal with regard to the European average. The table is set out by distance:
| Km | Analogue | 64 Kbps | 2 Mbps | 34 Mbps |
|---|---|---|---|---|
| 2 | -15% | -38% | -38% | 18% |
| 10 | -18% | -33% | -31% | 1% |
| 20 | 43% | -31% | -28% | -1% |
| 80 | 92% | -28% | -23% | 0% |
| 200 | 102% | -23% | -21% | -6% |
| 400 | 85% | -18% | -15% | -10% |
- The price of installing lower capacity national circuits is below the EU average, as can be seen from the table below.
| Analogue | 64 Kbps | 2 Mbps | 34 Mbps | |
|---|---|---|---|---|
| Installation | -77% | -40% | -60% | -84% |
