ANACOM - 2 - Facts Relevant to ICP'S Activity

In the area of market regulation, the activity undertaken during 2000 was orientated by increased action directed at the various bodies operating in the sector, of which the following deserve to be mentioned:

Those companies declared to have a significant market power are the following: Portugal Telecom, SA, in the interconnection markets, fixed telephone networks and / or fixed telephone services and rented circuits, and TMN - Telecomunicações Móveis Nacionais, SA and TELECEL - Comunicações Pessoais, SA, on the mobile telephone networks and / or mobile telephone services. In this context, ICP sounded put the interested parties, on the topic Significant Market Power 2000, so as to fine-tune the criteria used in defining market, with special emphasis on the national interconnection market, in view of its intrinsic complexity.
The proposed reference interconnection 2000 (PRI 2000), whose minim elements had been laid down in 1999, provided the framework to follow up the market evolution and the relationship between the operators in this area, since difficulties were identified, thereby leading to the subsequent need to introduce modifications to PRI 2000. This occurred way after Portugal Telecom, SA had published it, especially with a view to completing the interconnection agreements for 2000 with the other service providers, which was why ti became necessary to define a host of principles specifically related to the conditions applicable to access to special services.
The interventions directly related to the fixed-mobile traffic had their the price regime and interconnection rules applicable modified as of October 1st 2000, where the maximum corresponding call termination price had been previously established.
In the interconnection field, the minimum elements to be included in the proposed reference interconnection for 2001 (PRI 2001) were defined, after the parties interested were specifically sounded out.
Furthermore, the economic engineering process model of a fixed telecom network was presented in public, with a view to determining the costs of the fixed telephone services produced on this network, including the survey designed to sound out the parties interested as to the various components of the model and its calibration.
In matters of numbering, the public were consulted about numbering portability as to the operator portability modality, where the report resulting thereof was used by the government to define the timetable for the introduction of this functionality, both in the fixed telephone network and the digital network with Integrated Services Digital Network (ISDN) and in the mobile telephone network. Subsequently, ICP began, in collaboration with the parties involved, the actions necessary to fulfil the rules laid down, which led to the launch at the end of the year of a limited consultation on selecting the Portability Reference Body. This body shall be required to establish and operate the Reference Data Base, containing information on the numbers carried, so that it can interact thereby with ICP and all the legally bound providers to implement and ensure operator portability.
Competition introduced into the Fixed Telephone Service on January 1st 2000 led to the constant follow up of the development of the market and quite an active intervention by ICP, so as to guarantee its balanced development, at the same time making it possible to define the principles applicable by staying close on the heels of the needs felt by the parties interested. In this regard, various measures were adopted, always bearing in mind, as the primary objective, the protection of the consumer interests. These measures, which reflect the decisions of the Institute, are in particular related to the clarification of the regime of the various types of access to the Fixed Telephone Service (direct access and indirect access, on a call by call basis and through pre-selection, with functionalities successively introduced), including the definition eligible calls, the scope of which has been evolving according to the maturity of the market. This also involves mobile networks, in connection with the change in the ownership of the fixed-mobile traffic. Also the objectives linked to the quality of service were defined and so were the conditions of supply of the service of access to virtual call cards and the resale of telephone services, including rules in matters of prices practised between various service providers, with a clear impact on the users at large.
Both with regard to Portugal Telecom, SA, and CTT - Correios de Portugal, SA, ICP carried out some audits on the respective systems of cost accounting for the previous fiscal years, in order to check for compliance.
In connection with the public postal service, CTT and the Directorate General of Trade and Competition signed a Universal Service Price Agreement, valid for three years, in which 2% was stipulated as the maximum for an average weighted variation in the prices of services rendered on an exclusively basis. Also signed with CTT was the Universal Postal Service Quality Agreement, valid for the same period, in which the parameters and minimum levels of quality of service regarding the provision of a universal postal service are laid down.
At the same time registration and licensing were done, as shown in the following chart (Chart 2):

Chart 2

	2000	1999
· Registration of Public Utility	27	51
· Licences for the provision of Fixed Telephone Service	10	13
· Licences for Public Network Telecom	13	18
· Licences for utilization of Fixed Radio Access	-	11
· Authorization for Cable Distribution activity	4	2
· Registration for the provision of Audiotext Services	21	64

Within its scope as an advisory body to the Government, it is worth pointing out that, in addition to following up the process of the 5th phase of privatisation of Portugal Telecom, SA, an initiative was taken on a significant number of legislative measures, subsequently handed over to the Executive Branch for approval.

In the area of spectrum engineering, in addition to all the work done with the UMTS call for tenders and the definition of rules applicable to the land digital television platform (TDT/DVB-T), studies were conducted on national planning and European coordination for T-DAB in the Broad band. Also sub-bands were defined for the introduction of the civilian TETRA system (Transeuropean Trunked Radio) in the 410-430 MHz band and new plans have been adopted for the One-way Fixed Service (SFIM) in the band 406.1-430,0 MHz.

In connection with the TETRA system, a market survey was done to analyse the availability of equipment for this service, in the band from 450-470 MHz.

As for the TETRA Mobile Emergency and Security Network, contacts were made with the Ministry of Home Affairs, as the coordinator of the process for the establishment of the system.

Following the coming into force of the Regulation on the Citizen Band Radio Service, under which terms users of equipment and stations of this service are now required to merely register themselves with ICP, some 13,389 users were registered in 2000, corresponding to the 22,196 licences mentioned in Chart 1.

In terms of following up the market, the actions were taken in various areas:

An integrated set of tests on the quality of service of mobile networks (QoS-GSM) throughout the country, using specialized equipment, according to three criteria of analysis (audio quality, coverage and accessibility) including the various types of calls (mobile-mobile and mobile-fixed), the results of which were publicly made available.
Checking for compliance with the obligations to which the audiotext service providers are subject in conducting their respective activity and supervision and control in certain cases, based on complaints. As a result of this check, the access codes of five providers were suspended.
ICP handled many complaints, especially from consumers, and has in that connection sought clarifications from service providers. The complaints against communication services registered a substantial increase vis-à-vis the previous year, of around 435%. The audiotext services were responsible for this increase, accounting for 56% of the total complaints, which can be seen from the following charts (Charts 3 and 4).

Chart 3

	2000	1999
· Complaints received by ICP against communication services	572	107

Chart 4

Distribution of complaints per service	2000
· Fixed Service	105
· Land Mobile Service	101
· Audiotext	318
· Data Transmission	14
· Cable TV	17
· Postal Services	5
· Sundries	12

Checking for compliance with meeting the obligation of the free five seconds in the voicemail service introduced by the mobile operators, following ICP's 1999 recommendation.
In terms of equipment and standardization, sweeping changes occurred in 2000 in the regulatory field, which led to a new dynamic in this area of ICP's action. In this regard, new procedures of market regulation were applied. Most of the actions undertaken in this functional area were especially designed to implement actions and procedures arising from the new regime of telecom infrastructure installation in buildings (ITED), where design technicians and installers were registered, as per the following chart (Chart 5):

Chart 5

Registration of Technicians for ITED	2000
· New registrations of design technicians and installers	45
· Renewals of ex-RITA (Technicians and Companies)	6.092

In connection with the new regime applicable to radio equipment and telecom terminal equipment, laid down by the transposition of the corresponding EU Directive (R&TTE), checking for the placement on the market of radio equipment which does not function in harmonized bands throughout the European Union is to be emphasized, as reflected in the following chart (Chart 6).

Chart 6

Actions on notifications in connection with Directive R&TTE - 2000(Notifications 6.4)	2000
· Notifications received	647
· Notifying bodies	200
· Representatives	38
· Responses to notifications	90
· Reactions to the responses	23

On the other hand, the follow-up activity of the equipment market was intensified, with the number of actions to check the market almost rising fivefold (Chart 7). The actions conducted were designed to check for compliance with the new regime and electromagnetic compatibility, with the latter due to the notifications received in this connection (Chart 8).

Chart 7

Regulation fo the Equipment Market	2000	1999
· Actions to check the equipment on the market (1)	1.071	221
· Equipment checked	4.277	655
· Actions to collect the equipment for lab tests	50	16
· Equipment collected	54	80
· Actions to collect and analyse declarations of compliance and technical documentation (technical construction dossier) (2)	105	-
· Declarations of compliance and technical documentation collected	494	-

Note:
(1) - to check marking and the compulsory documentation and to determine who is responsible for placing that equipment on the market
(2) - actions undertaken for the first time in 2000

Chart 8

Notifications of Electromagnetic Compatibility	2000
· Notifications received	210

In connection with the laboratory and standardization activity undertaken by ICP, the renewal of accreditation by IPQ of the electromagnetic compatibility laboratory must be highlighted - Certificate IPQ Nº 95/L.143, to conduct tests according standards EN 50081-1, EN 55014, EN 55022, EN 55011, EN 55015, EN 61000, IEC 1000-4-3, IEC 1000-4-4 and IEC 1000-4-6.

In the area of dissemination of information, the following actions must be emphasized:

Development and dissemination of various studies, linked to the market regulation and follow-up activity, in particular: Development of Postal Service Prices - Priority Mail and Regular Mail, 1989/2000; Overall Perception of Quality of the Postal Services, 1999; Perception of the Quality of the Telecom Service, 1999; Internet - International Tariff Comparisons, 1999; Measuring the Quality of Service of the Mobile Networks (QoS-GSM).
Development of various publications for external dissemination, in particular: National Framework for Granting Frequencies; Publication of Frequencies - biennium 1999/2000; National Agreement for Frequency Sharing in Time of Peace; Statistical Yearbook of Communications Markets, 1999; ICP's presentation brochure; folder on ICP's laboratories; information folders on ICP's activity and on the spectrum; monthly bulletin Spectru.
Development of institutional videos on the following themes: presentation of the communications sector and the Institute, laboratories, radio electric spectrum and 3G mobile systems (UMTS).
Restructuring of ICP's site on the World Wide Web, in its Portuguese and English versions, and its use as a fundamental instrument for disseminating information to various types of actors on the market, including various thematic areas containing information specifically designed for consumers.

As for cooperation with other bodies, protocols were reached with the Portuguese Consumer Protection Association (DECO), the National Statistics Institute (INE), the Observatory of Sciences and Technologies (OCT), the Department of Labour Statistics, Employment and training (DETEFP), the Portuguese Institute of Quality (IPQ), "Empresa de Investigação e Desenvolvimento de Electrónica", SA (EID) and the Centre of Studies on Public Law and Regulation (CEDIPRE), in the field of scientific and technological collaboration, development of studies and / or surveys making it possible to enhance the knowledge of markets in a scenario of convergence of technologies and services, with positive impact on consumer protection and users at large.

Furthermore, in connection with collaborating with other bodies, the following projects merit mention in view of their importance:

Telemedicine Projects, in connection with the protocol between SEHC and SES;
Distance Education Projects for young people at hospitals (Portuguese Institute of Cancer and Centre of Medicine and Rehabilitation of Alcoitão), in partnership with the Regional Directorate of Education of Lisbon (DREL) under the Ministry of Education;
Project for the creation of a CyberCentre network, with a view to promoting information technologies, communication and multimedia, in cities of average size (Guimarães, Castelo Branco, Aveiro, Covilhã, Guarda and Beja). This is to be done in connection with the protocols reached with the Portuguese Youth Institute (IPJ) and local partners from the cities;
Pilot project of Citizens Service Points (PAC), developed in collaboration with the Institute for the Management of the Citizen's Shop (IGLC) and CTT, where in the course of the year two such Service Points were opened.

In terms of cooperation with other countries, a larger number of actions of cooperation was registered in 2000 compared with 1999, which are:

Bilateral meetings held with their opposite numbers in the USA, Russian Federation, Spain (Catalonia), France, Brazil and Hungary.
Development of bilateral technical cooperation with Cape Verde, Mozambique, Angola, and Guinea-Bissau;
Support to East Timor, including the follow-up of the works leading to the signing of the Memorandum of Understanding in matters of cooperation between the Portuguese Government and the Transition Government of East Timor, in the field of infrastructure.

In addition to the assistance provided to the Government in the field of legislation, it is important to point out the regulatory framework applicable to the sector, specifically or generically, taking into account the legal texts published during the year 2000:

I - On ICP's initiative

In the Telecommunications field:

Introduction of operator portability - Order of the Ministry of Social Equipment (MES) nº 12 809/2000 (II Série) of June 6th, published on June 23rd.

In the area of UMTS:

Publication of frequencies for IMT2000/UMTS - Notice published in the Official Gazette (DR) nº 174 (III Série), of July 29th.
Regulation on the call for tenders to grant four licences of national scope for the international mobile telecommunications systems (IMT2000/UMTS) - Ministerial Ruling nº 532-A/2000, of July 31st.
Setting the sum of the rate due to frequencies granted to each of the bodies granted a licence for the international mobile telecommunications systems (IMT2000/UMTS) - Ministerial Ruling nº 532-B/2000, of July 31st.
Launch of Call for Tenders - Notice nº 11 914-A/2000, published in the Official Gazette (DR) nº 176 (II Série), of August 1st.
Appointment of the UMTS Committee - Order of MES nº 15 661-A/2000, published in the Official Gazette (DR) nº 176 (II Série), of August 1st.

In the area of radio communication:

Regulation of the Citizen's Band Service - Decree Law nº 47/2000, of March 24th.
Regime applicable to the licensing of radio communication networks and stations and supervision of the installation of the said stations and the utilization of the radio electric spectrum - Decree Law nº 151-A/2000, of July 20th.
Categories of stations requiring radio electric licence, situations of exemption of network licence, elements which are to instruct the applications for grating radio electric licences and requirement of technical projects - Notice published in the Official Gazette (Diário da República), III Série, of October 24th 2000.
Publication of frequencies for the year 2000 - Notice published in the Official Gazette (DR) nº 120 (III Série), of May 24th.
Amendment of section "2.6 - Citizen's Band Service (CB)" of Ministerial Ruling 462/98, of July 30th - Ministerial Ruling nº 329/2000, of June 9th.

With regard to Telecommunication Infrastructure in buildings:

Legal regime for the installation of telecom infrastructure in buildings and respective connections to the pubic telecom networks - Decree Law nº 59/2000, of April 19th, subject of a subsequent rectification by Declaration of Rectification nº 7-C/2000, of June 30th.
Fees to be collected by ICP under Decree Law nº 59/2000, of April 19th - Order nº 13 877/2000, of June 15th, published in "DR" (II Série) on July 7th).

In the field of terminal equipment:

Regime of free movement, placement on the market and in service of radio equipment and telecom terminal equipment, as well as the regime of the respective evaluation of compliance and markings: Decree Law nº 192/2000, of August 8th.
Notice published in the Official Gazette (DR) of December 6th 2000 (III série), in compliance with art. 36 of Decree Law 192/2000.
Notice published in the Official Gazette (DR) of August 31st (III série), in compliance with para a) of nº 3 of art. 27 of Decree Law 192/2000.

In the field of Postal Services:

Universal Postal Service Concession Agreement, singed on September 1st.
Price Agreement singed between DGCC, ICP and CTT, S.A. - Notice published in the Official Gazette (DR) nº 230 (III Série), of October 4th.
Universal Postal Service Price Agreement, singed between DGCC, ICP and CTT, SA - Agreement singed on December 21st 2000 (published in the Official Gazette (DR) nº 51, III série, of March 1st 2001).
Universal Postal Service Quality Agreement, singed between ICP and CTT - Agreement singed on December 21st 2000 (published in the Official Gazette (DR) nº 51, III s

II - From other bodies

Major Options of the Plan for 2001, for the Communications Sector - Law n.º 30-B/2000, of December 29th.
Repeal of nºs 4 and 5 of article 15 of the Regulation on Call for Tenders Land Mobile Service - GSM and DCS 1800, approved by Ministerial Ruling nº 447-A/97 - Ministerial Ruling nº 800/2000, of September 21st.
Creation of an emergency and security mobile network - TETRA - Order of Ministry of Home Affairs (MAI) nº 10 082/2000 (II Série), of May 17th.
Approval of the restructuring of Portugal Telecom, SA - Decree Law nº 219/2000, of September 9th.
Approval of the 5th phase of privatisation of the privatisation process of the share capital of Portugal Telecom, SA - Decree Law nº 227-A/2000, of September 9th, modified by Decree Law nº 268-A/2000, of October 26th.
Approval of the list of resources allocated to the operational activity of Portugal Telecom, SA, corresponding to the entries in kind to form PT Comunicações SA - Joint Order of the Ministers of Social Equipment and Finance nº 936-A/2000, published in the Official Gazette (DN) nº 213 (II Série), of September 14th.
Final and concrete conditions for the operations necessary for the implementation of the 5th phase of the privatisation process of Portugal Telecom, SA - Council of Ministers Resolution nº 148/2000, of November 3rd.
Determining the final and concrete conditions of the 5th phase of the privatisation process of Portugal Telecom, SA, setting the quantities to be sold in each segment - Public Offer of Sale, institutional and referential - Council of Ministers Resolution nº 169/2000, of December 5th.
Information procedures in the area of technical standards. Rules on the information society services - Decree Law nº 58/2000, of April 18th, subsequently rectified by the Declaration of Rectification nº 6-C/2000.
Approval of the Internet Initiative and adoption of the respective plan of action - Council of Ministers Resolution nº 110/2000, of August 22nd.
Institutional Framework on the information society - Council of Ministers Resolution nº 114/2000 (II Série) and Order nº 20 657/2000 (II Série), of September 25th, published on October 14th.
Technical Accreditation Board as a supporting structure to the Institute of Information Technologies in Justice in carrying out its duties as a body granting accreditation to organizations certifying digital signatures - Decree Law nº 234/2000, of September 25th.
Condition and requirements for the use of an invoice or its equivalent, transmitted electronically by those liable to a legal tax relationship - Regulatory Decree nº 16/2000, of October 2nd.
Rules complementary to the regime on the broadcast of parliamentary sessions on public and private cable TV networks - Parliamentary Resolution nº 23/2000, of March 22nd.
Powers of CTT, parish councils, chambers of commerce and industry, lawyers and solicitors to confirm photocopies as true copies - Decree Law nº 28/2000, of March 13th, rectified by the Declaration of Rectification nº 5-H/2000, of March 31st.

EVENTS IN THE SECTOR

As for the sector, the following events, which occurred in 2000 deserve special attention:

Conference on Land Digital TV (DVB-T), in connection with the Portuguese Presidency of the EU Council, a joint organization by ICP and ICS, in Lisbon, in February.
IV Ministerial and Administrative Bodies Meeting of the Postal and Telecommunications Services of the Portuguese Speaking Community, in Brazil, in April, with ICP's participation.
World Telecom Day, 135th Anniversary, dedicated to "Mobile Communications", in Lisbon, in May, with ICP as organizer at the national level.
Quality Fair, in Lisbon, in June, with ICP's participation.
World Post Day, dedicated to the topic "One world: one postal network", including the 29th Letter Contest, in Lisbon, in October, with ICP's organization in collaboration with CTT.
Expotelecom, in Lisbon, in November, with ICP's participation.

I - On ICP's initiative https://www.anacom.pt/render.jsp?categoryId=7562
II - From other bodies https://www.anacom.pt/render.jsp?categoryId=7563
Events in the Sector https://www.anacom.pt/render.jsp?categoryId=7565