1. Summary

This text sets out to:

- Present the evolution of the prices of priority ("Correio Azul") and non-priority ("Correio Normal") mail services provided by CTT ? Correios de Portugal, S.A. (CTT) between 1993 and 2003^{(1)https://www.anacom.pt/render.jsp?contentId=55129};

- compare Domestic and International Basic price figures (prices of standard letters^{(2)https://www.anacom.pt/render.jsp?contentId=55130} weighing up to 20 g) practised in European Union (E.U.)^{(3)https://www.anacom.pt/render.jsp?contentId=55131} countries in 2003.

The following conclusions can be drawn from an analysis of this work:

• The price basket for priority and non-priority mail fell 5.9% in real terms between 1993 and 2003;
• The average price of non-priority mail fell 4.2% in real terms between 1993 and 2003;
• The average price of priority mail fell 25.2% in real terms between 1993 and 2003;
• In global terms this period saw the gradual rebalancing of prices achieved by reducing:
   
  - the prices of the higher weight scales compared with the prices of the lower weight scales;
  - the price of the international service compared with the domestic service;
  - the price of priority mail compared with non-priority mail;

Despite the progress made, the liberalisation of the sector has made it imperative that the process of relating prices to costs be continued;

• The domestic and international basic prices charged in Portugal are lower than the EU average;
• As far as the domestic service is concerned, the prices of non-priority mail in Portugal are significantly lower than average European costs (-29.0%). With regard to priority mail, lower prices are also charged though they are nearer the European average    (-10.4%);
• Comparing the international service with the EU average, the prices charged in Portugal for non-priority mail are:
   
  (i) ?2.2% in the E.U. segment; (ii) ?3.9% in the other European countries segment; (iii) ?10.7% in the Rest of the World segment.