2.2 Universal telecommunications service


Context

The State assumes the existence and availability of a universal service, held to be a basic level of quality communications services, accessible to all users.

The definition of universal service was established in Law no. 91/97 of 1 August (The Telecommunications Act), based on an economic/social notion whose outlines aim to accompany the changing needs of the population, and of economic and social activities.

The scope of universal telecommunications service and the regimes for price-setting and financing applicable to same are defined in Decree-Law no. 458/99 of 5 November, which transposes into the internal legal order the norms of Directive 98/10/EC of the European Parliament and of the Council of 26 February, concerning application of open network provision (ONP) to voice telephony and to universal telecommunications service in a competitive environment, and of Directive 97/33/EC, also of the European Parliament and of the Council of 30 June, on interconnection in the telecommunications sector, with the aim of assuring universal service and interoperability via application of open network provision principles.

Governed by the principles of universality, equality, continuity and affordability, the provision of universal service is important to guarantee a basic level of quality telecommunications services, accessible to all users and including the following: connection to the fixed telephone network and access to fixed telephone service; supply of public payphones; and availability of telephone directories and a directory enquiry service which include the numbers of the fixed telephone service and mobile telephone service subscribers. 

That measure envisages that the service may be provided by one or more entities to be designated by tender, although PT Comunicações remains the designated universal service provider until the public telecommunications service concession contract expires. Meanwhile, the new concession bases, approved by Decree-Law no. 31/2003 of 17 February, include universal telecommunications service provision in the scope of the concession, under the terms set in the said Decree-Law no. 458/99 of 5 November, including aspects related to the price regime.

Universal telecommunications service prices regulation is accomplished through a price convention signed by the Directorate General of Trade and Competition (DGCC), ICP-ANACOM and PT Comunicações.

The convention may according to law establish a system of maximum prices, or one involving geographic weighting or other similar systems, specifying criteria for the eventual inclusion of special or differentiated prices meant to ensure that the universal service prices are affordable for users.

Regarding the universal service financing mechanism, the possibility of setting up a compensation fund was envisaged. Those entities that operate public telecommunications networks and the fixed and mobile telephone service providers would contribute to the fund, which is to compensate any eventual negative margins resulting from their provision.

Activity pursued in 2002

The Price Convention for Universal Telecommunications Service was signed on 30 December 2002. It established the price regime applicable to the following universal telecommunications service provisions: fixed telephone service in subscriber mode (installation of the analogue network line, subscription of the analogue network line and telephone communications in the country); fixed telephone service in the public payphone mode (telephone communications in the country); and telephone directories and directory enquiry service. The Convention also determines the obligations of PT Comunicações with regard to retired customers, low-income pensioners, low-consumption residential customers and customers with special needs.

Prices for the provision of Universal service, by guaranteeing user access, should take into account their gradual adjustment to costs and obey the principles of transparency and non-discrimination. To that end, PT Comunicações is obliged to maintain a system of cost accounting that allows determination of the costs associated to the various provisions and to publicise the prices in effect and the respective application conditions.

In practice, for fixed telephone service subscribers, application of the requirements for gradual adjustment of prices to costs in 2003 implied a nominal average weighted price variation of not more than IPC-2.75 p.p. for domestic calls. PT Comunicações was also obliged to make available an optional price plan benefiting residential customers with lower telephone consumption.

In the context of the universal telecommunications service cost assessment carried out by ICP-ANACOM, the probable outcome of the decision on net costs of the obligation to provide universal service was approved (determination of 12 September 2002), envisaging the non-acceptance of any compensatory mechanisms for the period before full liberalisation of the telecommunications market. Study of the comments from interested parties and adoption of the corresponding decision were passed on to 2003.

After consulting the interested parties, a decision on the conditions for providing telephone directory service and directory enquiry service in the scope of universal service (determination of 14 June 2002) was likewise approved. To that end, ICP-ANACOM ruled specifically that other fixed telephone service and land mobile service providers should submit data on their subscribers to PT Comunicações, and that same should be included in the information service provided in the scope of universal service.

Subsequently, having verified that only some operators had submitted subscriber data to PT Comunicações for inclusion in the information service and directories, ICP-ANACOM began to assess the set of envisaged obligations and consider the application of sanctions.

ICP-ANACOM also decided (determination of 26 September 2002) that information on the direct customers of other providers, obtained in the scope of directory enquiry service provided under conditions of universal service, can only be used for its original purpose. Its respective use by PT Comunicações in other information services not associated to the provision of universal service, such as for example in 12118, can only take place after explicit authorisation from the other licensed operators (OLOs).

In 2001, the then ICP also carried out a public consultation on the universal service provider?s supply of public payphones. The report with the results of this consultation, including ICP-ANACOM?s understanding on the matter, was approved in April 2002.

Complementing this, with the aim of learning in detail the characteristics of the current PT Comunicações public payphones, a decision was made to ask the said company to submit information identifying each public payphone and any planned modifications of the installed public pay phones, including removal and installation of new public payphones (determination of 4 April 2002). PT Comunicações was likewise asked to submit a proposal on the parameters and levels to consider in the provision of this service, taking results of the public consultation and the ICP-ANACOM understanding into account. The study of the submitted proposal was not finished in 2002. A recommendation was also made for PT Comunicações to disclose to entities representing people with special needs the list of public payphones such customers are able to use.