Opinion II of the Advisory Council of ICP-ANACOM on the tariff of the universal service 2009


I

1. PT Comunicações, S.A. (PTC) submitted a proposal to ICP-ANACOM on 30/10/09 to amend the tariff of the Universal Service (US) for both the main tariff and the alternative tariff, to take effect from 01/01/10.

2. With respect to the main tariff, the proposal made by PTC consists of: (i) the extension of free traffic to the daytime period of weekends; and (ii) the merger of the Local and National pricing categories.

3. The Management Board of ICP-ANACOM concluded that:

1. The weighted variation of the prices resulting from the proposed main tariff of the fixed telephone service (applicable by default), presented by PTC to take effect from 01/01/10, is compatible with the applicable price-cap, resulting in an average annual change in the basket of -1.26%.

2. For the alternative tariff (applicable on an optional basis upon the request of customers), presented by PTC to take effect from 01/01/10, the variation of the prices results in -1.25%, which is also compatible with the applicable price-cap.

3. The reduction in the number of pricing categories associated with the base tariff represents a major simplification of the tariff structure and comes in a context of technological evolution where the distance of calls will tend to have less influence on costs, whereby PTC can be deemed as being in line with current market practice.

4. Although, with respect to the main tariff, the merger of the Local and National price categories represents a single one-off overall increase in the price of local calls made on working days, given the extension of free traffic to the daytime period of weekends, PTC's proposal actually constitutes a reduction of 0.28% in the average price of local calls. Nevertheless, the existence of the alternative tariff scheme, which maintains the current tariff structure and does not entail any increase in the price of calls, may provide a suitable alternative which ensures continuity with respect to the main tariff which has been in force.

Whereby:

II

4. The Specialist Committee of the Advisory Council sees no obstacle to the application of the tariff proposed by PT Comunicações, S.A.

5. Subsequent to previous opinions, the Advisory Council recommends the development of the works currently underway with respect to the review of the US, specifically in terms of its provision, scope and financing.

6. The present opinion requires submission to the ratification of the Advisory Council.

Specialist Committee.