In June 2022, telecommunications prices, measured through the respective sub-group of the Consumer Price Index (CPI), decreased by 0.2% compared to the previous month due to price changes in some bundled services.
Compared with the same month of the previous year, prices increased by 2.1%, mainly influenced by the price increases implemented by MEO, NOS and Vodafone in April 2022. This growth in telecommunication prices was 6.7 percentage points (p.p.) lower than that recorded by the CPI. The average rate of change in telecoms prices over the last 12 months was 1.8%, i.e., 2.3 p.p. below that recorded by the CPI (4.1%).
In Portugal, in June 2022, the average rate of change of telecommunication prices in the last 12 months was higher than in the European Union (EU) (+1.2 p.p.). Portugal recorded the 8th highest price variation (20th lowest) among EU countries. The country with the highest price increase was Poland (+4.9%) while the highest decrease was in Bulgaria (-5%). On average, telecoms prices in the EU increased by 0.6%.
From a long-term perspective and in cumulative terms, telecoms prices have grown 12.3% since the end of 2010 while the CPI grew 20.5%. Between 2015 and 2019 the cumulative change in telecoms prices was higher than the cumulative change in the CPI due to the “price adjustments” made by the main providers. In 2019, the narrowing in the divergence between the two indices was mainly due to the entry into force of Regulation (EU) 2018/1971 of the European Parliament and of the Council https://www.anacom.pt/render.jsp?contentId=1464946which imposed a maximum price for international intra-EU calls and SMS.
Without the price reduction of intra-EU calls, it is estimated that telecommunications prices would have grown by 16% since the end of 2010, being 4.5 p.p. below the CPI variation in this period. From the end of 2021 the CPI started to grow at a higher rate than telecommunications prices.
Between the end of 2009 and June 2022, telecoms prices in Portugal increased by 10.3%, while in the EU they decreased by 9.5%. The gap has narrowed with the entry into force on 15 May 2019 of new European rules regulating intra-EU communications prices.
A finer comparative analysis shows that between the end of 2009 and June 2022, telecoms prices fell by 14.4% in Lithuania, while in Latvia, Finland and Portugal they rose by 1.8%, 5.2% and 10.3% respectively.
NOWO offered the lowest monthly fees in eight cases out of a range of 13 services/offers, while MEO and Vodafone presented the lowest monthly fees for three and two types of services/offers, respectively.
In year-on-year terms, 9 services/offers saw prices rise and 5 saw prices fall. The following price changes stand out:
- the minimum STV monthly fee increased by 7.6% due to the discontinuation of NOS's single play STV offers;
- FBB's minimum monthly fee fell by 4.2%, due to the offer of the first monthly fee of NOWO's basic service;
- the minimum monthly fee of the MTS with Internet increased 43.8%, due to the elimination of MEO's offer (Uzo offer) with a monthly fee of 5 euros;
- the minimum monthly fees of the offers FBB+STV (+11.1%), STV+FTS and 3P (+0.4%), increased following the elimination of NOWO's STV option at 2.5 euros/month;
- the minimum monthly fees of the 4P offers increased by 1.3% due to the elimination of NOWO's STV option at 2.5 euros/month.
Per provider, MEO increased the monthly fees of two services/offers and decreased the monthly fees of three services/offers (increased the base monthly fee of 4P offers supported on ADSL or satellite network by two euros, but started to offer the first monthly fee on 4P and 5P offers). NOS increased the minimum monthly fee of a service/offer in relation to the same month of the previous year, while Vodafone decreased the monthly fee of an offer (mobile broadband offer of Internet through PC/tablet). NOWO increased the minimum monthly fees of six services/offers and decreased the monthly fee of one service/offer (offer of the first monthly fee of the fixed broadband single play basic service).
Consult the statistical report:
- Trends in telecommunications prices - June 2022 https://www.anacom.pt/render.jsp?contentId=1727273
