In March 2023, telecom prices, as measured by the relevant Consumer Price Index (CPI) group, increased by 1.7 per cent compared to the previous month as a result of an inflationary “price adjustment” by providers affecting bundled and mobile phone service offers.
Compared to the same month a year earlier, prices increased by 5.7%, the highest rate of change since April 1994. This change in telecommunication prices was 1.8 percentage points (p.p.) lower than that recorded for the CPI (7.4%).
The average rate of change in telecom prices over the last twelve months was 2.0%, which is 6.8 p.p. lower than the CPI (8.7%).
On a sub-group basis, the average rate of change over the last twelve months was 3.8% for bundled services and 0.5% for mobile telephony services, according to Eurostat.
In March 2023, the average rate of change in telecommunications prices over the last twelve months in Portugal was higher than in the European Union (+1.7 p.p.). Portugal recorded the 10th highest price change (18th lowest) among EU countries. The highest price increase was in Poland (+5.4%), while the highest decrease was in the Netherlands (-3.8%). On average, telecom prices in the EU increased by 0.2%.
On a sub-group basis, the average rates of change over the last twelve months for bundled services and mobile telephone services in Portugal were 2.5 p.p. and 1.3 p.p. respectively above the EU average.
From a long-term perspective and in cumulative terms, telecom prices have increased by 17.2% since the end of 2010 while the CPI has increased by 24.4%. Between 2015 and 2019, the cumulative change in telecom prices was higher than the cumulative change in the CPI due to “price adjustments” made by the main providers. In 2019, the narrowing of 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.
Without the reduction in the price of intra-EU calls, it is estimated that telecom prices would have increased by 21.1% since the end of 2010, being cumulatively 3.4 p.p. below the change in the CPI over this period.
From the end of 2021, the CPI started to grow at a faster rate than telecom prices.
Between the end of 2009 and March 2023, telecom prices in Portugal increased by 15.1%, while in the EU they fell by 8.4%. A more detailed comparative analysis shows that between the end of 2009 and March 2023, telecom prices in Croatia decreased by 11.6%, while in Cyprus, Slovenia and Portugal they increased by 0.9%, 1.0% and 15.1% respectively.
The lowest monthly charges are offered by NOWO in eight cases out of a total of 13 services/offers, while MEO and Vodafone offer the lowest monthly charges for four and two types of services/offers, respectively. NOS had the lowest monthly fee for one service/offer.
Compared to the previous year, there were 32 services/offers with price increases and six with price decreases. The most notable price changes were as follows:
- The PTV minimum monthly charge increased by 7.6% after NOS discontinued its PTV single-play offers. In March 2023, MEO’s single-play offer showed the PTV minimum monthly charge.
- The minimum FTS charge increased by 5.3% due to the increase in the price per minute of calls to the fixed network of Vodafone’s Fixed Voice Tariff from EUR 7 cents to EUR 7.38 cents.
- The minimum monthly charge of the MTS offer with mobile Internet increased by 4.3% due to the end of the first monthly charge offer of NOWO’s tariff, and to the end of the Uzo post-paid tariff with a monthly charge of EUR 7.50 and MEO’s offer of the first monthly charge.
- The minimum monthly charges for 3P, 4P and two 2P offers have decreased due to an increase of the discount value of NOWO’s offer, during the first 6 months.
- The minimum monthly fee of the 5P offer increased by 6.3% due to the increase in the monthly fee of Vodafone’s Fibre 4 Light offer.
Compared to the same month last year, and per provider, MEO increased the monthly charge for seven services/offers, while NOS increased the monthly charge for ten services/offers. Vodafone increased the minimum monthly charge for all 13 relevant services/offers. NOWO reduced the monthly charge for six services/offers (increase in the discount value, during the first six months, of the NOWO offer) and increased the monthly charge for two services/offers.
Consult the statistical report:
- Trends in telecommunications prices - March 2023 https://www.anacom.pt/render.jsp?contentId=1743784
