Trends in telecommunications prices - August 2020

Executive summary

• In August 2020, telecommunications prices, measured by the sub-index of the Consumer Price Index (CPI), fell by 0.47% compared to the previous month. This reduction was the result of change of a bundled offer by a provider.
• Compared to the same month of the previous year, the observed variation in prices was -1.14%. The year-on-year variation of telecommunications prices has been lower than the growth of the CPI since November 2017.
• The average variation rate of telecommunications prices of the last twelve months was -3.15%, i.e. 3.25 percentage points (p.p.) below that recorded by the CPI (0.10%). This price reduction primarily reflects the entry into force on 15 May 2019 of the new European rules regulating the prices of intra-European Union (EU) communications
• In August 2020, the average variation rate of telecommunications prices in Portugal was lower than that observed in the EU (-3.5 p.p.). The average variation rate of telecommunications prices of the last twelve months in Portugal was the 24th highest among EU countries. The country that recorded the highest increase of prices was Poland (+3.3%) while the largest reduction occurred Czech Republic (-3.8%). On average, telecommunications prices in the EU Increased by 0.4%.
• Between the end of 2009 and August 2020, telecommunications prices in Portugal increased by 6.5%, while in the EU they fell by 10.4%. The difference narrowed following the entry into force on 15 May 2019 of the new European rules regulating the prices of intra-EU communications.
• Compared to the same month of the previous year, ANACOM estimated that the lowest charges of individualised fixed broadband, of the most common double play (2P) packages, which include fixed internet, and quadruple play (4P) and quintuple play (5P) packages increased between 1.4% and 17.3%.
• Minimum monthly charges are offered by Vodafone in the case of seven of the 13¹ services/offers considered, while MEO and NOS show the lowest monthly charges in four and three cases, respectively. MEO increased the minimum monthly charge of six services/offers in relation to the same month of the previous year, while NOS and Vodafone increased the monthly charges in five and two services/offers, respectively. None of the providers reduced the minimum monthly charge of their services/offers when compared to the same month of the previous year.