Dispersion on leased lines prices in Portugal


/ Updated on 08.04.2002

The prices of leased lines in Portugal show a significant dispersion when compared to average prices practised in the European Union. A comparative study carried out by the Instituto das Comunicações de Portugal (ICP), concludes that prices are either significantly below or above the EU average.

This finding establishes grounds for a tariff rebalancing of prices of such lines in the near future, in order to achieve greater equilibrium in the market.

In general terms, leased lines correspond to the supply of capacity supported within a telecommunication network, leased by one operator to another as a complement to the latter's network. Such lines are of variable distance, measured in kilometres, of variable capacity and may be either analogue or digital. Leased lines may be used, for example, to transfer data or to offer dedicated Internet access.

Analysis of the lines by their respective capacities, reveals that the prices of short-distance analogue leased lines and low-capacity digital leased lines are generally lower in Portugal than those prevailing in the rest of Europe. On the other hand, for certain higher capacity digital lines the opposite is true, and the prices practised by PT Comunicações are higher than those of other European historic operators.

Differences are also recorded in installation charges: in the case of low capacity national lines, prices in Portugal are below the EU average; whereas in the case of 2 Mbps and 34 Mbps lines the prices practised by PT Comunicações are the highest in the EU.

In relation to international lines, it was found that the prices charged by Portugal's historic operator are below the EU average for 64 Kbps and 2 Mbps digital lines, and above in the case of analogue lines.

The study conducted by ICP, is entitled International Comparisons: Prices of the Leased Lines Service, and compares the prices charged by PT Comunicações in March, 2001 with those practised by Europe's other historic operators.


Consult: