4. Results of price evolution between 1998 and 2002 - Including EP beneficiary customers


/ Updated on 23.02.2007

This chapter briefly summarises the results of FTS price evolution, including EP customers, between January 1998 and 31 December 2002.

Table 4: Summary of the Nominal Evolution of FTS prices, including the EP
  1999 2000
Standard EP Global Standard EP Global
Installation 99,0 99,0 99,0 99,0 99,0 99,0
Monthly Rental 103,7 97,6 101,5 111,0 101,5 107,5
Local 106,5 99,1 105,6 109,4 102,4 108,5
Regional 102,5 95,7 102,1 100,8 97,7 100,6
Long Distance 90,3 89,7 90,3 56,3 56,4 56,3
International 80,2 80,2 80,2 67,7 67,7 67,7
Traffic 97,1 95,0 96,9 87,8 90,0 88,0
Total 99,4 97,1 98,9 95,0 98,8 95,8

 

  2001 2002
Standard EP Global Standard EP Global
Installation 99,0 99,0 99,0 99,0 99,0 99,0
Monthly Rental 117,1 107,0 113,4 117,7 107,6 114,0
Local 109,3 102,4 108,5 109,3 102,4 108,5
Regional 83,9 94,9 84,6 82,1 94,6 82,8
Long Distance 48,2 46,8 48,1 47,3 45,8 47,2
International 60,7 60,7 60,7 60,6 60,6 60,6
Traffic 80,7 87,2 81,3 80,1 86,9 80,6
Total 91,3 102,0 93,5 90,9 102,3 93,2

1998 (Base year) =100

Table 4 shows that customers benefiting from the economy package supported a nominal increase of 2.3% in FTS prices between 1998 and 2002, while customers of the standard price table benefited from a nominal accumulated reduction in the same period of 9.1%. As stated above, this result is due to the high weight that the tariff components whose prices increased in nominal terms have in the invoices of EP beneficiaries.

  

Table 5: Average annual nominal variation rate of FTS prices (1998-2002) - Including EP customers
  Standard EP Global
Installation -0,2% -0,2% -0,2%
Monthly Rental 4,0% 1,7% 3,2%
Local 2,3% 0,6% 2,1%
Regional -4,3% -1,3% -4,1%
Long Distance -16,7% -17,3% -16,7%
International -11,7% -11,7% -11,7%
Traffic -5,2% -3,4% -5,1%
Total -2,3% 0,5% -1,7%

Table 5 effectively shows that the prices for local calls and monthly rental increased in average annual nominal terms by 2.1% and 3.2% respectively. For the set of EP beneficiary and non-beneficiary customers in the years from 1998 to 2002, FTS prices dropped by an average of 1.7% a year, in nominal terms.

  

Table 6: Accumulated real variation of FTS prices (1998-2002) - Including EP customers
  Standard EP Global
Installation -13,0% -13,0% -13,0%
Monthly Rental 3,4% -5,5% 0,1%
Local -4,0% -10,0% -4,7%
Regional -27,9% -16,9% -27,2%
Long Distance -58,4% -59,8% -58,5%
International -46,8% -46,8% -46,8%
Traffic -29,7% -23,7% -29,2%
Total -20,2% -10,1% -18,1%

In real terms, only the monthly rental price increased. The FTS invoice for the set of FTS customers (EP beneficiaries and non-beneficiaries) benefited from an accumulated real drop of 18.1%.

Graphic 2: Real Evolution of the FTS Price Index (Includes EP)

Graphic 2: Real Evolution of the Fixed Telephone Service Price Index (Includes Economic Package)

(Click on the image to see the graphic in a new window)