In November 2020, telecommunications prices, measured by the sub-index of the Consumer Price Index (CPI), increased by 0.12% compared to the previous month. This change was due to the price increase of the triple-play bundles1.
Compared to the same month of the previous year, the observed variation in prices was -1.03%. The average variation rate of telecommunications prices of the last twelve months was -2.43%. 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.
Over a longer time horizon, between the end of 2009 and November 2020, telecommunications prices in Portugal increased by 6.7%, while in the European Union they fell by 10.6%. In particular, while telecommunications prices in Portugal increased by 6.7% during this period, in Spain, Italy and France they fell by 9.4%, 16.9% and 24%, respectively. The difference narrowed following the entry into force on 15 May 2019 of the new European rules regulating the prices of intra-EU communications.
Figure 1 - Evolution of the HICP of telecommunications in the EU between December 2009 and November 2020
Unit: %
Source: ANACOM, based on Eurostat data
Note: Information not available for the United Kingdom, Ireland, Malta, Sweden and Estonia.
The differences between the evolution of the telecommunications prices in Portugal and in the EU was primarily due to the “price adjustments” implemented by the providers during various years, particularly in the first months of each year.
Figure 2 - Evolution of telecommunications prices in Portugal and in the EU (2009M12 = Base 100)
Unit: index (2009M12 = Base 100)
Source: ANACOM, based on Eurostat data
Note: EU telecommunications prices from December 2016 differ from those published previously due to changes made by Eurostat. The information up to November 2016 was gathered on 16 March 2018. The information from December 2016 onwards was gathered on 20 November 2020.
According to information disclosed recently by Eurostat, that compared the price levels of communications in the different countries of the EU, in 2019 telecommunications prices in Portugal were the eighth highest of the European Union, 21.4% above the average2.
Figure 3 - Prices of communications in the EU (2019, EU = 100)
Unit: index (UE27 = Base 100)
Source: ANACOM, based on Eurostat data
Note: Includes prices of telephone and fax equipment, the provision of Internet access, mobile and fixed telephone services, telecommunications bundles and postal services. Prices adjusted to purchasing power parity.
On the other hand, according to the report on the «Trends in telecommunications prices» of November 2020, disclosed today by ANACOM, among the services/offers considered, the lowest monthly charges are offered by NOWO in seven cases of services/offers, while MEO and NOS and NOS show the lowest monthly charges for three types of services/offers, and Vodafone for one type of service/offer. It should be noted that the individualised Internet access service offer of NOWO is the one with the lowest monthly charge (20 euros).
Compared to the same month of the previous year, the following prices variations are noteworthy (Table 1):
- The minimum monthly charge of the most common quintuple play (5P) bundles fell by 0.3%, due to promotions at the end of November, related to “Black Friday”, by MEO and NOS.
- The minimum monthly charge of the most common quadruple play (4P) bundles fell by 0.4%, also due to changes in NOWO offers.
- The minimum monthly charge of the mobile telephone service with Internet on mobile phone fell by 36.1%, due to the reduction of the monthly charge of NOWO's offer from 7.5 euros to 5 euros and the introduction of the free offer of the first monthly charge;
- and the minimum monthly charge of the individualised fixed broadband (BLF) service increased by 4.3%, due to the end of the free offer of the first monthly charge of the basic service provided by NOWO.
|
Total |
MEO |
NOS |
NOWO |
Vodafone |
|
|
TVS |
0.0 |
0.0 |
0.0 |
0.0 |
24.1 |
|
BLF |
4.3 |
-7.4 |
7.2 |
4.3 |
4.0 |
|
STF |
0.0 |
20.0 |
1.0 |
0.0 |
0.0 |
|
STM |
0.0 |
0.0 |
0.0 |
-36.1 |
0.0 |
|
STM with Internet on mobile phone |
-36.1 |
0.0 |
0.0 |
-36.1 |
0.0 |
|
BLM PC/Tablet |
0.0 |
0.0 |
0.0 |
- |
0.0 |
|
BLF+TVS |
0.0 |
3.3 |
24.0 |
0.0 |
24.1 |
|
BLF+STF |
0.0 |
0.0 |
24.0 |
0.0 |
4.0 |
|
TVS+STF |
0.0 |
1.6 |
0.0 |
0.0 |
24.1 |
|
BLF+TVS+STF |
0.0 |
3.3 |
24.0 |
0.0 |
24.1 |
|
BLF+TVS+STF+STM |
-0.4 |
-4.3 |
-0.5 |
-0.4 |
0.0 |
|
BLF+TVS+STF+STM with Internet on mobile phone |
-0.4 |
-4.3 |
-0.5 |
-0.4 |
0.0 |
|
BLF+TV+STF+STM with Internet on mobile phone +BLM PC/Tablet |
-0.3 |
-4.0 |
-4.0 |
- |
0.0 |
Unit: %
Source: ANACOM
Note: TVS – Subscription TV signal distribution service; BLF – Fixed broadband; STF – Fixed telephone service; STM – Mobile telephone service; BLM – Mobile broadband supported by PC/tablet.
In addition to this, MEO decreased its minimum monthly charge of four services/offers in relation to the same month of the previous year, and increased the monthly charge in another four services/offers, while NOS reduced the minimum monthly charges of three services/offers and increased the minimum monthly charges of five services/offers, and Vodafone increased the monthly charges in six services/offers. Some of these variations were related to “Black Friday” promotions. Particular note should be made of the increased monthly charge of the triple play offer of MEO, NOS and Vodafone3.
1 See: MEO, NOS and Vodafone increase monthly charges of 3P bundles by 3.3% and reduce qualityhttps://www.anacom.pt/render.jsp?contentId=1586142.
2 Eurostat, ''How communication prices vary across the EU
3 See: MEO, NOS and Vodafone increase monthly charges of 3P bundles by 3.3% and reduce qualityhttps://www.anacom.pt/render.jsp?contentId=1586142.
Consult the statistical report:
- Trends in telecommunications prices - November 2020 https://www.anacom.pt/render.jsp?contentId=1599528
