ICP-ANACOM approved on 31 October 2007 the decision on the changes to be made to the RIO, to enter into force in 2007, and the new interconnection conditions within PTC's switchboards.
a) Call origin and termination prices
It should be noted that with this decision, which already includes the reduction following the determination of 28 February 2007 regarding the implementation of the US tariffs, the market enjoyed in 2007 an average reduction of about 12 per cent in interconnection prices with PTC.
These reductions were base on two components of the interconnection prices: call set-up price (reductions of about 0.07 to 0.1 Euro cents) and price per minute (reductions between 0.02 and 0.14 Euro cents), depending on the type of interconnection.
Thus, in terms of European comparisons, the established interconnection prices stand for a considerable improvement in Portugal's position regarding the community (EU15) average, both regarding call origin and terminations, as well in comparison with several EU15 countries.
Graph 14. European comparisons - fixed interconnections prices (call origin and termination)1
This price drop, determined according to the principle of price orientation to costs, helped improve competition in the sector. Records show that, at the local and simple transit levels, the most used in the market, and in the regular timetable, termination prices in Portugal in 2007 became lower than the EU15 average (Portugal excluded) in about -18 and -12 percent, respectively (in 2006 these deviations were -4 and +1 percent, respectively), while in the economic timetable, favourable deviations surpass 20 per cent.
|
Countries |
Origin |
|||||
|
Local |
Simple Transit |
Double Transit |
||||
|
N.T.T. |
E.T.T. |
N.T.T. |
E.T.T. |
N.T.T. |
E.T.T. |
|
|
Germany |
0,52 |
0,36 |
0,88 |
0,59 |
1,36 |
0,89 |
|
Austria |
0,82 |
0,48 |
1,28 |
0,71 |
2,90 |
1,10 |
|
Belgium |
0,62 |
0,32 |
0,87 |
0,46 |
0,87 |
0,46 |
|
Denmark |
0,43 |
0,27 |
0,56 |
0,35 |
0,80 |
0,50 |
|
Spain |
0,67 |
0,40 |
1,00 |
0,60 |
1,39 |
0,84 |
|
Finland |
1,99 |
1,99 |
1,99 |
1,99 |
1,99 |
1,99 |
|
France |
0,53 |
0,34 |
1,00 |
0,65 |
1,25 |
0,81 |
|
Greece |
0,52 |
0,49 |
0,85 |
0,79 |
1,09 |
1,02 |
|
Netherlands |
0,70 |
0,43 |
1,06 |
0,66 |
1,50 |
0,87 |
|
Ireland |
0,54 |
0,30 |
0,73 |
0,41 |
0,92 |
0,51 |
|
Italy |
0,42 |
0,28 |
0,74 |
0,49 |
1,18 |
0,80 |
|
Luxemburg |
0,76 |
0,38 |
0,76 |
0,38 |
1,00 |
0,50 |
|
Sweden |
0,67 |
0,54 |
0,90 |
0,72 |
0,97 |
0,76 |
|
United Kingdom |
0,39 |
0,18 |
0,56 |
0,25 |
1,54 |
0,70 |
|
RIO 2006 |
0,64 |
0,41 |
0,93 |
0,58 |
1,44 |
0,88 |
|
RIO 2007 |
0,56 |
0,37 |
0,82 |
0,51 |
1,27 |
0,78 |
|
EU Average |
0,68 |
0,48 |
0,94 |
0,65 |
1,34 |
0,84 |
|
RIO 2007 |
-18.7% |
-24.2% |
-12.9% |
-21.1% |
-5.2% |
-7.0% |
|
Average |
0,60 |
0,38 |
0,89 |
0,57 |
1,25 |
0,77 |
|
RIO 2007 |
-7.3% |
-4.5% |
-7.5% |
-10.1% |
1.3% |
0.7% |
|
Countries |
Termination |
|||||
|
Local |
Simple Transit |
Double Transit |
||||
|
N.T.T. |
E.T.T. |
N.T.T. |
E.T.T. |
N.T.T. |
E.T.T. |
|
|
Germany |
0,52 |
0,36 |
0,88 |
0,59 |
1,36 |
0,89 |
|
Austria |
0,82 |
0,48 |
1,28 |
0,71 |
2,25 |
0,87 |
|
Belgium |
0,62 |
0,32 |
0,87 |
0,46 |
1,12 |
0,59 |
|
Denmark |
0,38 |
0,23 |
0,56 |
0,35 |
0,80 |
0,50 |
|
Spain |
0,67 |
0,40 |
1,00 |
0,60 |
1,39 |
0,84 |
|
Finland |
1,98 |
1,98 |
1,98 |
1,98 |
1,98 |
1,98 |
|
France |
0,53 |
0,34 |
1,00 |
0,65 |
1,25 |
0,81 |
|
Greece |
0,52 |
0,49 |
0,85 |
0,79 |
1,09 |
1,02 |
|
Netherlands |
0,71 |
0,45 |
0,90 |
0,55 |
1,15 |
0,70 |
|
Ireland |
0,56 |
0,31 |
0,76 |
0,42 |
1,03 |
0,57 |
|
Italy |
0,42 |
0,28 |
0,74 |
0,49 |
1,18 |
0,80 |
|
Luxemburg |
0,76 |
0,38 |
0,76 |
0,38 |
1,00 |
0,50 |
|
Sweden |
0,67 |
0,54 |
0,90 |
0,72 |
0,97 |
0,76 |
|
United Kingdom |
0,36 |
0,16 |
0,52 |
0,24 |
1,50 |
0,69 |
|
RIO 2006 |
0,64 |
0,41 |
0,93 |
0,58 |
1,44 |
0,88 |
|
RIO 2007 |
0,56 |
0,37 |
0,82 |
0,51 |
1,27 |
0,78 |
|
EU Average |
0,68 |
0,48 |
0,93 |
0,64 |
1,29 |
0,82 |
|
RIO 2007 |
-18.1% |
-23.8% |
-11.7% |
-20.1% |
-1.5% |
-5.1% |
|
Average |
0,60 |
0,38 |
0,87 |
0,56 |
1,25 |
0,75 |
|
RIO 2007 |
-6.9% |
-4.1% |
-6.3% |
-8.8% |
1.5% |
3.7% |
Source: ICP-ANACOM
b) Capacity interconnection (interconnection flat rate)
The capacity interconnection model is the transparent and non-discriminatory offer, by PTC to the OSPs, of a given capacity of interconnection services at a fixed monthly price, as an alternative to the traditional time-based interconnection model, thus establishing an interconnection flat rate.
Following the mentioned price reduction decided for time-based interconnection, monthly fees connected to capacity interconnection were also reviewed, considerably improving the conditions associated to this offer.
c) Billing, collection, and non-collection risk service prices
With the mentioned determination of 31 October 2007, it was decided to maintain the maximum prices of PTC's billing, collection, and non-collection risk service established on RIO 2006, considering its associated costs.
d) Pre-selection activation price
A new price was set for pre-selection activation, establishing a 58 per cent reduction, which changed from 5.10 Euros to 2.12 Euros, a figure that stands among the best European practices and 69 per cent below the EU15 average (Portugal excluded), as shown on the following graph.
Graph 15. European practices regarding the pre-selection activation price (2007)
e) Number portability activation prices
Number portability is an important function in the promotion of increased competition in telephone service, since it attenuates one of the barriers concerning changes in this market.
There was a 60 per cent reduction (from 13.60 Euros to 5.39 Euros) in the individual number portability price that placed Portugal among the lowest EU15, and about 44 per cent bellow the corresponding average (Portugal excluded), as shown on the graph bellow.
Graph 16. European practices regarding individual number portability price (2007)
It was also decided to considerably simplify the tariff scheme applying to the portability of number blocs. It is no longer in connection with the total amount of portations during the previous quarter and to the figures set by the Reference Entity. Reductions were established which, in the higher numbering ranges, surpassed 50 per cent.
This measure also made it possible to considerably improve Portugal’s stand in this matter regarding the EU15, while also contributing to a favourable position on the amount of ported numbers, as analysed on section 2.5.5.1.
Graph 17. European comparisons - portability prices (2007)
f) Interconnections within PTC's switchboards
As mentioned regarding the LLRO, an important measure was adopted regarding the conditions of interconnection at PTC's switchboards among OSPs co-installed therein or with PT Group companies with an interconnection point installed at the same building.
RIO - Interconnection agreement model
Determination of 12 July 2007 approved the DD on the changes to the interconnection agreement model included in PTC's RIO. The approval of the mentioned determination aimed to assure a greater compatibility between the interconnection agreement model included in the RIO and the applying regulatory framework, in order to adopt transparent, efficient and non-discriminatory procedures, the mentioned DD also promoting a specific consultation on this matter.
In the context of the previous hearing concerning the mentioned DD, several comments were received that justified a proper weighting and delayed of the final decision to 2008.
1 Figures presented above for each country were obtained by applying the estimated interconnection traffic weightings to the interconnection tariff scheme in force in each Member State (average price per minute for a three minute call), in order to obtain, both for call origin and call termination, an indicator which is liable to evaluate the several interconnection elements in an aggregated way.
