On 25.02.2005, ICP-ANACOM adopted a decision on the analyses of the wholesale markets for voice call termination on individual mobile networks in operation in Portugal (hereinafter 2005 Market Analysis Decision) 1.
This document conducts the definition of product markets and geographic markets, the assessment of Significant market power (SMP) and the imposition, maintenance, amendment or withdrawal of regulatory obligations in the wholesale markets for voice call termination on individual mobile networks, whereby the following three active mobile operators have been identified as having SMP on their respective networks:
- TMN - Telecomunicações Móveis Nacionais, S. A. (TMN)
- Vodafone Portugal - Comunicações Pessoais, S. A. (Vodafone)
- Optimus - Telecomunicações, S.A. (Sonaecom - Serviços de Comunicações, S. A. (Sonaecom) 2
A set of regulatory obligations was then imposed on these operators with a view to a set of objectives, as described in Table 1.
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Respond to reasonable requests for access |
This obligation aims to ensure that situations do not occur where, without basis, there is refusal to negotiate or refusal to grant access. It ensures, specifically, that other operators can complete calls which originate on their networks and terminate on the networks of the mobile network operators concerned. |
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Non-discrimination in the offer of access and interconnection and in the respective provision of information |
This obligation aims to ensure that the operators which benefit from the provision of access and interconnection are not unfairly disadvantaged, insofar as the capacity of these operators to compete is not impacted by any discriminatory behaviour of the mobile network operators. It should be interpreted so that the prices of call termination on a mobile network should be identical, regardless of whether the origin of the call is the fixed network, another mobile network or an international call, given that the service provided is the same. |
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Transparency in the disclosure of information
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Operators are required to submit to ICP-ANACOM, within 10 days, a copy of all Interconnection agreements to which they are party and shall publish the prices of voice call termination services on their networks and respective changes. They shall also provide interconnection applicants with all the information and specifications required for interconnection, including changes with significant impact, whenever their execution is planned. |
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Price control and cost accounting |
This obligation is embodied in an obligation of cost orientation and in the adoption of a cost accounting system. |
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Separation of accounts |
The accounting separation obligation, including the obligation to report financial information (accounting records), is essential for the regulator to ensure compliance with the obligations of non-discrimination and transparency. It is also important in the context of the obligation of implementing a cost accounting system. |
On the same date, ICP-ANACOM took another decision regarding the obligation to control prices in the wholesale markets of voice call termination on individual mobile networks 3 (hereinafter 2005 Price Control Decision) which set out the terms governing the implementation of the price control obligation during the years 2005 and 2006.
ICP-ANACOM opted for a gradual reduction in prices (Glide-Path), whereby the evolution of maximum termination pricing was fixed, as outlined in Table 2.
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Fixed-Mobile Termination |
International - |
Mobile-Mobile |
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TMN and |
Sonaecom |
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Previous price |
0.1850 € |
0.2779 € |
0.1870 € |
0.1870 € |
|
7 March 2005 |
0.1400 € |
0.2050 € |
0.1400 € |
0.1400 € |
|
1 July 2005 |
0.1350 € |
0.1950 € |
0.1350 € |
0.1350 € |
|
1 October 2005 |
0.1300 € |
0.1820 € |
0.1300 € |
0.1300 € |
|
1 January 2006 |
0.1250 € |
0.1700 € |
0.1250 € |
0.1250 € |
|
1 April 2006 |
0.1200 € |
0.1500 € |
0.1200 € |
0.1200 € |
|
1 July 2006 |
0.1150 € |
0.1300 € |
0.1150 € |
0.1150 € |
|
1 October 2006 |
0.1100 € |
0.1100 € |
0.1100 € |
0.1100 € |
Source: ICP-ANACOM
On 07.02.2008, concurring with the validity of the conclusions and regulatory obligations included in the 2005 Price Control Decision and noting that, after more than 18 months, no reduction in practised prices had occurred in terms of the cap stipulated in said determination, ICP-ANACOM decided to intervene again in setting maximum prices for voice call termination on individual mobile networks, taking a further decision on the matter (hereinafter 2008 Price Control Decision).
The view was taken at that time that to maintain very high prices for termination on mobile networks in comparison to costs, as measured through international comparisons, constitutes a factor of distortion of competition between these networks and fixed networks. This consequently led to the maintenance of artificially high prices charged to end-users for electronic communications which originated on fixed networks and which terminated on mobile networks.
It was therefore deemed important to correct these aspects, whereas there were grounds for a more substantial immediate reduction in the maximum prices for termination on mobile networks, in light of the fact that the practised prices had been maintained over a long period of time. As such, it was decided to maintain a regulatory approach - in line with the 2005 Price Control Decision - which would ensure the progressive evolution of termination rates in order to allow operators to adapt as required and avoid disruptive alterations, leading to the establishment of a new Glide-Path.
Additionally, provision was made for a longer transition period for Sonaecom to reduce its termination rates, resulting in a moderate and transitory asymmetry in termination rates charged by this operator in relation to TMN and Vodafone. This provision aimed to reduce problems arising from market failure due to high differentiation between on-net and off-net 4 rates which, heightening the effects of network externalities, contributed to cause that operator a significantly unfavourable level of traffic imbalance.
The Glide-Path established in the 2008 Price Control Decision is shown in Table 3. It is noted that the asymmetric termination rates were eliminated in the last quarter of this regulatory intervention, and accordingly, as of 1 October 2009 (and until the present time) equality is seen in the maximum prices for call termination on the mobile networks of the three operators.
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Fixed-Mobile, Mobile-Mobile and International-Mobile Termination |
|
|
TMN and Vodafone |
Sonaecom |
|
|
15 July 2008 5 |
0.0800 € |
0.0960 € |
|
1 October 2008 |
0.0750 € |
0.0900 € |
|
1 January 2009 |
0.0700 € |
0.0840 € |
|
1 April 2009 |
0.0650 € |
0.0780 € |
|
1 July 2009 |
0.0650 € |
0.0720 € |
|
1 October 2009 |
0.0650 € |
0.0650 € |
Source: ICP-ANACOM
At the moment when the first price reduction stipulated in the 2008 Price Control Decision entered into force, the average for mobile termination rates in Portugal was the 13th lowest among the countries comprising the benchmark of the European Regulators Group (ERG), and is close to the average the rates reported for these countries.
1 Available at Wholesale markets for voice call termination in individual mobile networks (market 16)https://www.anacom.pt/render.jsp?categoryId=216283.
2 It should be noted that Optimus, following the Market Analysis decision merged with the operator Novis (operator of the same economic group also controlled directly and indirectly by Sonaecom SGPS, S.A.); the entity which resulted from this merger is now named Sonaecom - Serviços de Comunicações, S.A.
3 Available at
4 On-net calls correspond to calls originating and terminating on the same network, while off-net calls are those originating and terminating on different networks.
5 Only required from 23 August 2008.
