Taking into account the studies already carried out on this issue, ICP-ANACOM concluded, during 2008, a proposed revision of the general model of fees applicable to providers of electronic communications networks and services, including fees associated with use of the radio spectrum. The new model, approved by the Government after hearing the Advisory Council of ICP-ANACOM, was published in Diário da República as Administrative Rule no. 1473-B/2008 of 17 December 2008, thereby implementing the provisions of Article 105 of the LEC as of 1 January 2009.
The new model consists of profound changes to the previous model, and is characterized by the following key features:
- New methodology for the calculation of fees relating to use of the radio spectrum, which entails charging for the amount of spectrum assigned, thereby encouraging its efficient use and discouraging the holding of quantities of spectrum that is surplus to need, taking into account that the cost incurred will be independent of the level of use.
Meanwhile, this approach is designed to address two areas of concern in some way safeguarded by the previous regime. The first, of a competitive nature, refers to the premise that in a model based on the amount of assigned spectrum, the costs of this resource does not reflect, in the first years of an operator's activity in the market, the extent of their customer base, as is reflected in a model based on spectrum use. To maintain this advantage of the current model, without compromising the model now adopted, based on charging for the amount of spectrum allocated, it was decided to incorporate a reduction of 50 percent in the first three years of radio spectrum allocation in cases involving the licensing of new networks which are subject to the allocation of frequency usage rights under the NFAP, and involving the licensing of networks for the railway communications system (GSM-R).
The second concern, which is of a social nature, relates to television broadcasting services. For television and radio broadcasting services, which services are fundamental from the point of view of social cohesion, there is justification that the spectrum which is assigned takes this dimension into consideration. Accordingly, it was decided to apply a fee equivalent to 37.5 percent of the value of spectrum to be allocated for the provision of television broadcasting service and a fee amounting to 15 percent of the value of spectrum allocated for the provision of radio broadcasting services.
- Introduction of fees for numbering resources, aimed at more efficient use of resources, and reflecting scarcity in certain numbering ranges.
- Determination of annual fees associated with the exercise of the activity of provider of electronic communications networks and services, according to the costs of regulation incurred by ICP-ANACOM and the relevant income of the sector. This new approach requires transparency in and the disclosure of the costs incurred by this Authority, and the payment of fees by operators, according to their relevant income.
With this model, the revenue structure of ICP-ANACOM will undergo significant change insofar as radio spectrum fees will cease to represent, as before, almost the entirety of its income. In order to provide for the gradual implementation of the new model, a transition period of two years was put in place until its full implementation, with the exception of the use of frequencies by the broadcasting service (radio and television), for which the transition period shall be five years, given the social character of the services in question.
Since the new model will have a material impact on the spectrum usage fees applicable to GSM, DCS 1800 1 and UMTS mobile stations, resulting in a significant reduction in the amounts paid compared to the current model in 2008, and given the dynamics of the market, the Government proposed and approved (Administrative Rule no 1473-A / 2008, 17 December) a new tariff for each mobile station for the second half of 2008, which represented a reduction of 30 percent.
With regard to numbering resources, Administrative Rule no 1473-B/2008 of 17 December sets out the value of fees applicable to the allocation of rights to use numbers and the use of numbers, both under Article 105 of the LEC, and sets the terms for its implementation in the of two year transition period.
To calculate the annual amount of usage fees due for the use of numbers, four different rates were created, which are applied depending on the type and scarcity of the numbering resources.
1 Digital cellular system 1800 MHz networks.
