IV. Results


Below is a brief summary of the individual results per service:

A) Installation

The price charged by the Portuguese incumbent operator for installing circuits is significantly lower than the EU average for the categories of circuits considered. The greatest difference consists in the price for installing 34 Mbps circuits (84% lower than the average for the other operators), which is the second lowest in the EU, higher only than the price charged by the incumbent operator in Austria. As regards analogue circuits, the price of installation charged by PTC is the lowest in the EU.

Figure 1 - Difference in the price of Installation with regard to the average for the other incumbent operators in the EU

Figure 1 - Difference in the price of Installation with regard to the average for the other incumbent operators in the EU
(Click on the image to see the graphic in a new window)

Annex 1 sets out the individual results per country.

B) Monthly rental  for Analogue Circuits

In Portugal, the value charged for the monthly subscription to an analogue circuit is lower than the average for short-distance circuits, and is higher for longer distances.

Figure 2 - Difference in the national price for a monthly rental foranalogue circuits, with regard to the average for the other incumbent operators in the EU

Figure 2 - Difference in the national price for a monthly rental foranalogue circuits, with regard to the average for the other incumbent operators in the EU
(Click on the image to see the graphic in a new window)

Despite the fact that for longer distances the price differences are significant, owing to the fact that circuits of shorter distances make up the largest portion, the price of the basket of analogue circuits is just 8% higher than that levied in the other countries of the EU.

Figure 3 - Index of prices for the analogue circuit basket

Figure 3 - Index of prices for the analogue circuit basket
(Click on the image to see the graphic in a new window)

C) Monthly rental for Digital Circuits

With regard to national digital circuits, the prices offered by the incumbent operator in Portugal are generally lower than those charged in the other countries considered. The difference between that and the average price charged by the other operators is most significant for 64 kbps and 2 Mbps circuits with a length of 2 Km (-38% in both cases). 

Only the price of 34 Mbps digital circuits for distances of 2 km and 10 km is above the average of the EU's other incumbent operators, by 18% and 1%, respectively.

The price of the basket of digital circuits (including 64 Kbps, 2 Mbps and 34 Mbps capacities) is 30% below the average prices charged in the other EU countries, and is the second most economical, surpassed only by the basket relating to Denmark.

Figure 4 - Index of prices for the basket of national digital circuits (64 Kbps, 2 Mbps and 34 Mbps)

Figure 4 - Index of prices for the basket of national digital circuits (64 Kbps, 2 Mbps and 34 Mbps)
(Click on the image to see the graphic in a new window)

C1) Monthly rental forto 64 Kbps Digital Circuits

In this type of circuit, and for the distances considered, PTC charges prices lower than the average for the EU's other incumbent operators. With regard to circuits with a distance of 2 km, national prices are  about  38% lower than the average, and the minimum difference is 18% (400 km).

Figure 5 - Difference in the national price for a monthly rental for 64 Kbps digital circuits, with regard to the average of the other incumbent operators in the EU

Figure 5 - Difference in the national price for a monthly rental for 64 Kbps digital circuits, with regard to the average of the other incumbent operators in the EU
(Click on the image to see the graphic in a new window)

The basket of 64 Kbps digital circuits is the third most economical in the EU,  33% less than the average for baskets offered by the other operators considered.

Figure 6 - Index of prices for the basket of 64 Kbps digital circuits

Figure 6 - Index of prices for the basket of 64 Kbps digital circuits
(Click on the image to see the graphic in a new window)

C2) Monthly Subscription to 2 Mbps Digital Circuits

For this type of circuit , Portugal also charges prices which are lower than the average in the other countries of the EU. The differences are most significant in circuits with a distance of 2 km, where PTC, amongst other similar operators, charges the third lowest price in the EU, surpassed only by the price charged by Austria TeleKom and by TeleDanmark.

Figure 7 - Difference in the national price for a monthly subscription to 2 Mbps digital circuits, with regard to the average of the other incumbent operators in the EU

Figure 7 - Difference in the national price for a monthly subscription to 2 Mbps digital circuits, with regard to the average of the other incumbent operators in the EU
(Click on the image to see the graphic in a new window)

The price of the basket of circuits with a 2 Mbps capacity is the third lowest charged by the EU's incumbent operators, around 30% below the corresponding average.

Figure 8 - Index of prices for the basket of 2 Mbps Digital Circuits

Figure 8 - Index of prices for the basket of 2 Mbps Digital Circuits
(Click on the image to see the graphic in a new window)

C3) Monthly rental for 34 Mbps Digital Circuits

As regards national circuits with a 34 Mbps capacity, the prices charged by PTC, which were considerably above the average prices levied by the other operators considered, are, in 2003, lower than or nearing those charged by the other operators considered. Only the monthly rental of short-distance circuits (2 km) is around 18% above average.

Figure 9 - Difference in the national price for a monthly rental for 34 Mbps digital circuits, with regard to the average of the other incumbent operators in the EU

Figure 9 - Difference in the national price for a monthly rental for 34 Mbps digital circuits, with regard to the average of the other incumbent operators in the EU
(Click on the image to see the graphic in a new window)

D) Monthly rental for  International Circuits

The prices implemented by PT Comunicações for international circuits are generically lower than the average prices charged by the other operators, except with regard to 64 kbps and 2 Mbps circuits whose destination is the United States of America.

Within the categories analysed, those circuits whose destination is Brazil, United Kingdom, Germany, France and Spain, have prices  lower than the average for the other operators considered.

As regards international circuits, the geographical proximity between countries is one of the main factors which influences the price of the circuit, and, within this scope, for those circuits whose destination is Spain and Brazil, PTC's subscription prices are significantly lower than the aforementioned average.

Figure 10 - Percentage difference, with regard to the average of the other incumbent operators in the EU, of the price of a monthly rentalfor international digital circuits whose destination is the countries identified and originating in the other countries of the EU

Figure 10 - Percentage difference, with regard to the average of the other incumbent operators in the EU, of the price of a monthly rentalfor international digital circuits whose destination is the countries identified and originating in the other countries of the EU
(Click on the image to see the graphic in a new window)

When the reciprocity 2https://www.anacom.pt/render.jsp?contentId=55130 of the prices of international circuits is analysed, it can be seen that as regards 64 Kbps circuits, only those circuits whose destination is France have prices close to those charged for the opposite direction (rented from France Telecom). In the remaining cases analysed, the prices implemented by PTC are much lower than those of their European counterparts.

Figure 11 - Prices of 64 kbps interantional circuits
Euros Spain France United Kingdom Germany
From Portugal 550 700 700 920
To Portugal 1.082 701 1.394 1.350
Difference (%) -49% 0% -50% -32%

For 2 Mbps international circuits also, it can be seen that the prices for circuits terminating at the destinations identified are lower than the prices of equivalent circuits rented from the incumbent operators from those countries. The least significant difference relates to those circuits that connect Portugal and the United Kingdom.

Figure 12 - Prices of 2 Mbps interantional circuits
Euros Spain France United Kingdom Germany
From Portugal 7.000 8.900 8.900 11.600
To Portugal 15.025 11.161 9.103 13.610
Difference (%) -53% -25% -2% -15%

In order to overcome, to a certain extent, the effect which geographic proximity between countries produces in terms of comparisons of the prices of international circuits, Figure 13 sets out the differences from the EU average prices charged by each incumbent operator for 64 Kbps and 2 Mbps international circuits terminating in the neighbouring Member State and in the furthest Member State. In order to define the countries considered to be neighbouring and furthest away from each Member State, we followed the criterion used by the European Commission in the Reports on the Implementation of the Telecommunications Regulatory Package. It is, however, important to emphasise that, when we consider the prices of circuits whose destination is the furthest country, this methodology benefits the countries of central Europe, given their geographical location.

Figure 13- Difference in prices of 64 kbps and 2 Mbps international circuits, to neighbouring countries and countries furthest away from each Member State, with regard to the EU avera
  Difference from the EU average price for 64 kbps circuits to the  Difference from the EU average price for 2 Mbps circuits to the
Neighbouring Country Furthest Country Neighbouring Country Furthest Country
Portugal (E;DK) 3https://www.anacom.pt/render.jsp?contentId=55131 -30% -20% -18% -16%
Germany (F;EL) 61% 21% 14% 6%
Austria (D;EL) nd Nd nd nd
Belgium (F;EL) 2% 51% 8% 18%
Denmark (SWE;EL) -51% -12% -68% -34%
Spain (P;DK) 37% -5% 76% 15%
Finland (SWE;EL) -31% 41% -41% 42%
France (B;EL) -28% -44% 29% -26%
Greece (I;DK) 86% 52% 113% 61%
Holland (D;EL) -19% -32% -13% -20%
Ireland (UK;EL) -46% -9% -57% -9%
Italy (EL;DK) 15% -28% 15% -35%
Luxemburg (D;EL) -53% -45% 7% -39%
United Kingdom (F;EL) 72% -23% -36% -33%
Sweden (DK;EL) -46% 39% -45% 35%

By looking at Figure 13, we can see that the prices charged by the Portuguese incumbent operator for circuits with a 64 Kbps capacity to the nearest country (Spain) and to the furthest country in the EU (Denmark) are 30% and 20% lower than the average price, to equivalent destinations, as implemented by the EU's incumbent operators. With regard to 2 Mbps circuits, prices are 18% and 16% lower than the aforementioned average, to the neighbouring country and to the furthest country, respectively.

The majority of the EU's incumbent operators do not publish prices for 34 Mbps international circuits. It can also be seen that those incumbent operators which do publish a price list for the aforementioned circuits, sometimes fail to provide prices for all the destinations. With regard to the above, the bilateral nature of the prices, in this type of circuit, can only be analysed for the destinations of Spain and Italy. In both cases, the prices of circuits rented to the incumbent operator in Portugal and terminating in Spain or Italy are lower than the price of equivalent circuits rented from the incumbent operators in Spain and Italy, with particularly emphasis on the difference in price to the neighbouring country.

Figure 14 - Prices available for 34 Mbps international circuits
Euros Spain Italy
From Portugal 40.000 72.600
To Portugal 105.177 89.025
Difference (%) -62% -18%

2 Price comparison, for example, between Lisbon and Madrid, of equivalent circuits as charged by PTC and by Telefónica. 
3 (X;Y) equivalent to (Neighbouring Country; Furthest Country). Portugal - P; Germany - D; Austria - AUT; Belgium - B; Denmark - DK; Spain - E; Finland - FIN; France - F; Greece - EL; Holland - NL; Ireland - IRL; Italy - I; Luxemburg - L; United Kingdom - UK; Sweden - SWE