ANACOM - Trends in telecommunications prices

According to INE (Statistics Portugal)¹, in October 2014, telecommunications prices² rose in both nominal and real terms, increasing 0.86 percent versus September, by 0.12 percent versus October 2013 and by 0.69 percent on average over the last twelve months.

**Table 1 - Change in Consumer Price Index (CPI) and in telecommunications prices**
	October 2014			2013
	Year-on-Year change	Average change 12 months	Change versus prior month	Average change 12 months
CPI	0.00%	-0.25%	0.33%	0.27%
Telecommunications³	0.12%	0.69%	0.86%	0.15%
Ranking in descending order (43 groups)	22	15	12	24

Source: INE (Statistics Portugal)

In average terms, the annual increase in prices reported was the 15th highest among 43 products/service considered. The sectors where prices rose more than in the telecommunications sector were sectors of non-transactional goods, regulated prices or subject to specific control.

In recent years, telecommunications prices have increased in nominal and real terms at the beginning of each year, as a result of the ''price adjustments'' brought in by providers.

Graph 1 - Monthly change in CPI and telecommunications prices

Graph 1 is a line graph that shows the historical series of the monthly rate of change in CPI and telecommunications prices since 2009.

Source: INE (Statistics Portugal)
Unit: %

Since January 2014, the average annual increase in telecommunications prices has exceeded the variation in CPI. In October 2014, the difference between the two rates was reported at 0.94 percentage points.

Graph 2 - Twelve month average rate of change of CPI and telecommunications prices

Source: INE (Statistics Portugal)
Unit: %

According to EUROSTAT⁴, telecommunications prices⁵ in Portugal have increased, while falling in the EU⁶. On average terms, in October 2014, the annual increase in prices reported in Portugal was 3.01 p.p. above the EU average, so that price increases in Portugal are the 5th largest among EU countries.

**Table 2 - Change in telecommunications prices: Portugal vs EU**
	October 2014			2013
	Year-on-Year change	Average change 12 months	Change versus prior month	Average change 12 months
EU	-1.88%	-2.32%	-0.19%	-4.48%
Portugal	0.12%	0.69%	0.86%	0.15%
PT / EU difference	2.01 p.p	3.01 p.p	1.04 p.p	4.64 p.p
Ranking in descending order (23 countries)	6	5	3	4

Source: EUROSTAT
Unit: %, p.p.
Note: Information for Ireland, Malta, Netherland, Sweden and United Kingdom not available.

Since March 2011, telecommunications prices⁷ have risen more in Portugal than in the EU (in terms of average annual change).

Graph 3 - Average rate of change over previous twelve months - telecommunications prices: Portugal vs EU

Graph 3 is a line graph that shows the historical series of the average annual rate of change in telecommunications prices since 2010 in Portugal and in the EU.

Source: EUROSTAT
Unit: %

Notes

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¹ See ''Consumer Price Index - October 2014'' (INE, 2014), available at Taxa de variação homóloga do IPC foi nula em Outubro - Outubro de 2014 Link externo.

http://www.ine.pt/xportal/xmain?xpid=INE&xpgid=ine_destaques&DESTAQUESdest_boui=211221900&DESTAQUESmodo=2.
² ''Telephone, telegraph and telefax services'' sub-index of the Consumer Price Index (CPI) and of the Harmonised Indices of Consumer Prices (HICP), which comprises voice, Internet and subscription TV (STV) services acquired on a stand-alone basis or as part of a bundle of services.
³ ''Telephone, telegraph and telefax services'' sub-index of the Consumer Price Index (CPI) and of the Harmonised Indices of Consumer Prices (HICP), which comprises voice, Internet and subscription TV (STV) services acquired on a stand-alone basis or as part of a bundle of services.
⁴ See HICP - monthly data (EUROSTAT, 2014), available at Eurostat - Data Explorer Link externo.

http://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=prc_hicp_midx&lang=en.
⁵ ''Telephone, telegraph and telefax services'' sub-index of the Consumer Price Index (CPI) and of the Harmonised Indices of Consumer Prices (HICP), which comprises voice, Internet and subscription TV (STV) services acquired on a stand-alone basis or as part of a bundle of services.
⁶ Information for Ireland, Malta, Netherland, Sweden and United Kingdom not available. Information for Estonia available from 2010.
⁷ ''Telephone, telegraph and telefax services'' sub-index of the Consumer Price Index (CPI) and of the Harmonised Indices of Consumer Prices (HICP), which comprises voice, Internet and subscription TV (STV) services acquired on a stand-alone basis or as part of a bundle of services.