Trends in telecommunications prices - August 2022

Executive Summary

Telecom prices in Portugal were unchanged in August 2022

In August 2022, telecommunications prices, as measured through the respective sub-index of the Consumer Price Index (CPI), were unchanged from the previous month.

Compared to August 2021, prices increased by 1.8%, mainly as a result of the price increases implemented by MEO, NOS and Vodafone in April 2022¹. The increase in telecommunications prices was 7.2 percentage points lower than the increase in CPI.

The average rate of change in telecommunications prices in Portugal over the last twelve months was 1.8% (3.5 percentage points below the CPI rate of 5.3%).

According to Eurostat, by subgroup, the average variation in the prices of bundles services was 3.8% and the average variation in mobile telephone services was 0.2%.

Average variation over the last twelve months in Portugal was 1.3 percentage points higher than the EU

In August 2022, the average variation in telecommunications prices in Portugal over the last twelve months was higher than in the European Union (+1,3 percentage points). Portugal reported the 6th highest increase in prices (22nd lowest) among EU countries. The country with the biggest price increase was Poland (+5.0%) while the biggest decrease occurred in Slovenia (-4.5%). On average, EU telecom prices rose by 0.5%.

By subgroup, the average rate of change in prices over the last twelve months in Portugal exceeded the EU average by 2.3 percentage points (for bundled services) and by 0.6 percentage points (mobile telephone services).

Telecommunications prices have increased 12.3% since the end of 2010

From a long-term perspective and in cumulative terms, telecommunications prices have increased by 12.3% since the end of 2010, while CPI has increased by 20.1%. Between 2015 and 2019, the cumulative change in telecommunications prices was higher than the cumulative change in CPI due to “price adjustments” made by the main providers. As of 2019, the narrowing divergence between the two indexes was mainly due to the entry into force of Regulation (EU) 2018/1971 of the European Parliament and of the Council, which imposed a maximum price on international calls and intra-EU SMS.

If it were not for the price reduction in intra-EU calls, it is estimated that telecommunications prices would have increased by 16.0% since the end of 2010 (4.1 percentage points below the variation in CPI through this period).

Starting in late 2021, CPI began to grow at a faster rate than telecommunications prices.

Since 2009, prices have increased by 10.3% in Portugal and decreased by 9.7% in the EU

Between the end of 2009 and August 2022, telecommunications prices in Portugal increased by 10.3%, while in the EU they decreased by 9.8%.

A finer comparative analysis shows that, between the end of 2009 and August 2022, telecommunications prices fell by 12.3% in Croatia while increasing 1.9% in Slovenia, 2.3% in Cyprus and 10.3% in Portugal.

NOWO has the lowest monthly fee for eight offers

The lowest monthly charges are offered by NOWO in eight cases out of a total of 13 services/offers; MEO and Vodafone reported the lowest monthly charges for four and two types of services/offers respectively.

In year-on-year terms, there were three services/offers with price increases and four with decreases. The following price variations stand out:

• The lowest monthly charge for subscription television increased by 7.6%, due to the discontinuation of single-play subscription TV offers from NOS.
• The lowest monthly charge for fixed broadband fell by 4.2%, due to NOWO's offer waiving the first monthly charge for its basic service.
• The lowest monthly charge of the Mobile Telephone Service with internet increased by 43.8%, due to discontinuation of MEO's offer with a monthly charge of five euros (Uzo offer).

Compared to the same month of the previous year, and by provider, MEO increased the monthly charge for two services/offers and reduced the monthly charge for three services/offers (increased the base monthly charge for 4P offers supported over ADSL or satellite networks by two euros, but started offering a waived first monthly charge in 4P and 5P offers). Meanwhile, NOS increased the lowest monthly charge for one service/offer in relation to August 2021, while NOWO reduced the monthly fee for one service/offer (waiver of first monthly charge for the single-play basic fixed broadband service).

According to Cable.co.uk, Portugal had the 4th highest average price among the EU27 countries for 1 GB of mobile data

According to the “Worldwide mobile data pricing 2022” study undertaken by Cable.co.uk, in the second quarter of 2022, the average price of 1 GB of mobile data in Portugal was the 4th highest in the EU27 (76.5% above the average).

Analysing only the cheapest offers available in each country, Portugal had the 3rd highest prices in the EU27. The price of 1 GB under the cheapest offer in Portugal was about 107.8% higher than the average of the cheapest offers in the EU27.