Trends in telecommunications prices - October 2022

Executive Summary

Telecoms prices fell by 0.6% in October 2022

In October 2022, telecoms prices, as measured by the respective Consumer Price Index (CPI) group, decreased by 0.6% from the previous month due to changes in mobile broadband offerings via PC/tablet/pen/router made by two providers.

Compared to the same month of the previous year, prices increased by 1.0%, mainly influenced by price increases applied by MEO, NOS and Vodafone in April 2022¹. This growth in telecoms prices was 9.1 percentage points (p.p.) lower than that recorded by the CPI (10.1%), the largest negative difference since this information started to be collected (January 1992).

The average rate of change in telecoms prices over the last twelve months was 1.8%, i.e. 4.9 p.p. below that recorded by the CPI (6.6%).

On a per sub-group basis, according to Eurostat, the average rates of change over the last twelve months were 3.7% and 0.2%, respectively for bundled services and mobile telephone services. In the case of bundled services, the rate was 2.6 p.p. higher than in 2021.

Average change over the last twelve months in Portugal was 1.5 p.p. higher than in the EU

In October 2022, the average rate of change over the last twelve months in telecoms prices in Portugal was higher than in the European Union (+1.5 p.p.). Portugal recorded the 6th highest price change (22nd lowest) among EU countries. The country with the highest price increase was Poland (+4.5%) while the highest decrease was Slovenia (-4.6%). On average, telecoms prices in the EU increased by 0.2%.

On a per sub-group basis, the average rate of change over the last twelve months in prices of bundled services and mobile telephone services in Portugal exceeded the EU average by 2.4 p.p. and 0.9 p.p., respectively.

Telecoms prices up by 11.4% since the end of 2010

In a long-term perspective and in cumulative terms, telecoms prices grew by 11.4% since the end of 2010 while the CPI grew by 23.1%. Between 2015 and 2019, the cumulative change in telecoms prices was higher than the cumulative change in the CPI due to “price adjustments” made by main providers. In 2019, the decrease in the 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 cap on international intra-EU calls and SMS.

Had the price reduction of intra-EU calls not taken place, telecoms prices are estimated to have grown by 15.1% since the end of 2010, being in cumulative terms 8.0 p.p. below the CPI change in this period.

From the end of 2021, the CPI started to grow at a faster rate than telecoms prices.

Since 2009, prices have increased by 9.4% in Portugal and decreased by 10.0% in the EU

Between the end of 2009 and October 2022, telecoms prices in Portugal increased by 9.4%, while in the EU they decreased by 10.0%.

A more detailed comparative analysis shows that between the end of 2009 and October 2022, telecoms prices fell by 27.0% in the Netherlands and 2.1% in Austria, while in Hungary and Portugal they rose by 1.1% and 9.4% respectively.

NOWO with the lowest monthly fee for eight offers

The lowest monthly fees are offered by NOWO in eight cases out of a range of 13 services/offers, while MEO and Vodafone presented the lowest monthly fees for four and two types of services/offers respectively.

On a year-on-year basis, there were 3 services/offers with price increases and 5 with price decreases. The following price changes stand out:

• The PTV minimum monthly fee increased by 7.6% after NOS ended its single play PTV offers. In September 2022, the PTV minimum monthly fee corresponded to a MEO offer.
• The FBB minimum monthly fee decreased by 4.2%, due to the offer of the first monthly fee of NOWO’s basic service.
• The minimum MTS monthly fee with Internet increased by 43.8%, after MEO ended its offer (Uzo offer) with a monthly fee of 5€.

Compared to the same month last year, and on a provider basis, MEO increased the monthly fees of two services/offers and decreased the monthly fees of three services/offers (the company increased the basic monthly fee of 4P offers supported on ADSL or satellite network by 2€, waiving however the first monthly fee of 4P and 5P offers). NOS increased the minimum monthly charge of a service/offer compared to the same month last year while it decreased the minimum monthly charge of a service/offer (discount of 5€ on the first three monthly fees of the basic MBB PC/tablet/pen/router service). NOWO decreased the monthly fee of one service/offer (offer of the first monthly fee of the fixed broadband single play basic service).