ANACOM imposes on MEO a reduction by 50% in the price of lines for the islands

ANACOM imposed on MEO the reduction of the price of Ethernet leased lines (capacity not exceeding 10 Gbps) between the Mainland and the Autonomous Regions of the Azores and Madeira (MAM lines) and between the various islands of each region (inter-island lines), using undersea cables. The imposed decrease by 50% must take effect within 30 days from MEO’s notification of the decision. An additional reduction of prices is expected to take place in the scope of the final decision of the market analysis, aiming at their cost-orientation.

ANACOM intends with this urgent measure to improve competition conditions in the market, with benefits for operators who must lease this infrastructure in order to develop their activity and for consumers in general, which will be able to enjoy a wider range of offers. Competition problems identified by the analysis carried out by ANACOM result, in particular, from the fact that prices applied are excessively higher than costs.

The growth of broadband offers, the increase of Internet speed and of bundled offers have led to greater demand of capacity of the referred undersea cables. This fact has generated an increase of operational costs of operators competing with MEO who provide services in the Autonomous Regions (costs with MAM and inter-island lines have a significant weight in these operators' cost structure) and the degradation of the quality of service, this decision aiming to address these shortcomings.

The price decrease which is now imposed, as an urgent and provisional measure, will remain in force until the analysis of the wholesale high-quality access market provided at a fixed location is completed, in the scope of which final measures will be adopted.