Note from the Management Board

Management plan 2009-2011

ICP-ANACOM's Management Plan for the period 2009-2011 followed the approach taken in the previous three-year plan, which marked a departure from previous plans in terms of methodology. This reflects a commitment by the Regulator to a model which enables scrutiny of the implementation of actions which have been acknowledged as strategic and whose execution has been made a priority.

The new methodology was introduced with the aim of improving levels of efficiency and effectiveness, allowing more objective evaluation of this Authority’s performance, including though the refinement of the overall activity indicators introduced in 2008 and their monitoring.

ICP-ANACOM’s mission for the period covered by the present Annual Report (2009) has not changed in relation to the mission established for the previous three years, “to regulate, supervise and monitor the electronic communications market in order to ensure that all citizens are provided with a diverse choice and universal access to (electronic and postal) communications services, in a market with conditions that foster innovation, investment, and efficient service provision, besides its responsibility in contributing for the development of the European Union’s internal market.”

In formulating its mission, emphasis was again given to the fundamental importance of efficient spectrum management, favoring greater flexibility in the use of this scarce resource.

In line with its mission, the vision for 2009 was focused on the following areas: i) ICP- ANACOM’s position as a reference among regulators at a national and international level, striving for the continuous improvement in the management of its assets and resources, in the pursuit of excellence in its accomplishments, the qualification of its people and the use of knowledge; ii) recognition for the way in which ICP-ANACOM relates with all its stakeholders, upholding the rights of users and of citizens in general and promoting the proper functioning of markets; and iii) the recognition of ICP-ANACOM’s proactive role as a participant in international bodies and in providing technical representation of the Portuguese State.

For ICP-ANACOM to accomplish its mission and vision, it must adhere to the values and principles that mark and characterize the way in which it deals with its stakeholders: values and principles based on professional and institutional ethics; integrity, respect and responsibility; independence; transparency; defense and promotion of healthy competition; capacity to take on regulatory risk, achieving a balance between stability and innovation; proportionality; promotion of technological neutrality; pro-activity and anticipation; excellence in performance and a focus on results; and greater individual responsibility among its staff.

In view of the general framework established by its mission, vision and values, ICP-ANACOM identified a number of factors held as critical for its success: i) prioritization and focus on results; ii) organizational efficiency; iii) change management, learning and continuous improvement; iv) people management; and v) consistent integration in the development of the European Union's regulatory process.

Meanwhile the five strategic objectives established for the preceding period were maintained:

• Promote open and competitive markets.
• Uphold and protect the rights of users and citizens in general.
• Improve the regulator's efficiency and its capacity to act.
• Participate in the development of the European Union's internal market, improving its internal performance.
• Promoting institutional and technical cooperation.

In addition, it should be noted that, within the scope of its responsibilities, ICP-ANACOM’s Advisory Council issued (in November 2008) a positive opinion on the 2009 Management Plan.

It was this previously defined general context which gave basis to ICP-ANACOM's activity in 2008, both in its role as adviser to the Government, and in the fulfillment of its duties as National Regulatory Authority (NRA) of the sector.

Furthermore, it is important to note the changes occurring in November 2009, in ICP-ANACOM’s Management Board: on the conclusion of her mandate (in September) Board Member Maria Teresa Rodrigues Xavier Pintado Maury stepped down, replaced by Filipe Alberto da Boa Baptista, appointed by Resolution of Council of Ministers of 12 November (Resolution no. 23/2009, published on 25 November).

Government Advisement

National context

As adviser to the Government, a significant part of the activity of ICP-ANACOM in 2009 focused on continuing works begun previously; these were described and contextualized in the opening note of the 2008 Annual Report and Accounts.

We begin here with Digital Terrestrial Television (DTT).

Firstly, it is important to note the approval, in February 2009, of the basic methodology for the transition to the digital terrestrial television broadcasting system and the deadline for the switch-off, across the entire country, of television broadcasting using the terrestrial analogue system - 26 April 2012 (Resolution of Council of Ministers no. 26/2009, published on 17 March). This Authority was charged with the publication of a detailed plan for the switch-off of the terrestrial analogue transmission of each transmission or relay station. Aiming at providing assistance, the Council of Ministers decided to establish a group to monitor the migration to digital television (GAM-TD), chaired by a representative of this Authority. This monitoring group will bring together the efforts of those most directly involved in the analogue-digital transition.

Meanwhile, it should be recalled that, in December 2008, ICP-ANACOM issued PT Comunicações with the title establishing the right of use of frequencies, on a national basis, for the provision of the digital terrestrial television broadcasting services associated with Multiplexer A, for the transmission of the unrestricted free-to-air television programme service.

The process launched by this Authority culminated in the implementation of the strategy defined by the Government in 2008, including by means of Resolution of Council of Ministers no. 12/2008 of 22 January, and with the resolution of the legal actions which had been ongoing in late 2008, in June 2009 PTC was issued with the allocation titles of the rights of use of frequencies associated with Multiplexers B to F, intended for the transmission of television programme services of non-conditional access with subscription or conditional access.

However, in December 2009 a request was received from PTC to repeal the act of allocation of rights of use of frequencies (for Multiplexers B to F), whereupon ICP-ANACOM began an analysis of the situation, leading to the approval of a draft decision in January 2010. Once consideration has been given to the commentary received under the subsequent public consultation procedure, to the contents of the prior hearing of PTC and to the position expressed by ERC - Entidade Reguladora para a Comunicação Social (Regulatory Authority for the Media), this draft decision will be made final.

Furthermore, as part of this Authority’s advisory activity, actions were undertaken with regard to the process of designating the provider(s) of the Universal Service of electronic communications, whereas the final decision on the terms and conditions of the tender process rests assuredly with the Government. In 2009, ICP-ANACOM continued its work preparing the documents governing the tender for the selection of the provider(s) of the Universal Service, taking into account the conclusions and recommendations made by ICP-ANACOM in 2008, following the corresponding public consultation.

These documents will be submitted to the Government in early 2010, so that the process of selecting the entity or entities responsible for the various provisions which comprise the Universal Service can be begun. As such, the goal is to ensure compliance with the requirements set out in the Universal Service Directive (Directive no. 2002/22/EC of the European Parliament and of the Council of 7 March 2002), regarding the designation of the service provider universal, and halting the procedure instituted by the European Commission against the Portuguese State for failure to fulfill its obligations.

Additionally, note should be made of ICP-ANACOM’s advisory activity with regard to Next Generation Networks (NGN), following a process initiated in 2008 and, in particular, of the establishment of promotion of investment in NGN as a national strategic priority (Resolution of the Council of Ministers no. 120/2008 of 30 July, by which approval was given to the strategic guidelines for the development and investment in next generation networks).

In this context, ICP-ANACOM worked to develop the documents governing the five public tenders launched for the installation, management, operation and maintenance of high-speed electronic communication networks in Portugal. Through this initiative, the Government will select the undertaking with which contracts will be made for the installation, management, operation and maintenance of high-speed electronic communication networks covering at least 50 % of the population of the geographical area of each municipality covered by the five regions of the national territory - North, Centre, Alentejo and Algarve, the Azores, Madeira - for which tenders were opened. ICP-ANACOM, which was charged with appointing the selection board for each procedure and was also designated as instructor of the tender process, while, at the request of the Panel, its technical services consulted in the analysis and evaluation of the presented proposals.

In February 2010, the Government announced decisions to award the tenders for the regions of the North (awarded to DSTelecom), Centre (awarded to Viatel) and Alentejo and Algarve (awarded to DSTelecom).

In the same context, note should be made of the support provided to the Government through the work undertaken to prepare legislation giving approval to the regime applicable to the construction of infrastructures for telecommunications in buildings and in housing developments, urban settlements and concentrations of building. This took shape as Decree-Law no. 123/2009 of 21 May (amended by Statement no. 43/2009 of 25 June), which gave effect to the guidelines mentioned in Resolution of Council of Ministers no. 120/2008.

Decree-Law no. 123/2009 reaffirmed the right of access, by electronic communications companies, to the public domain and their right to request the expropriation and the constitution of public easements, as already enshrined in the Law of Electronic Communications (Law no. 5/2004 of 10 February). This legislation also promotes the harmonization of procedures, especially in the relationship between operators and local authorities, which is an issue of unquestionable importance in removing uncertainties and barriers to the installation of infrastructure which is suitable for accommodating next generation networks.

Alongside the rules governing the construction and expansion of infrastructure, this legislation set out that the ducts and infrastructure in possession of the state and other public entities shall be open to electronic communications operators. Various entities are covered by this legislation, including the State, the Autonomous Regions, local authorities, public enterprises and concessionaires, as well as entities in possession of infrastructure encompassed by the public domain. The operators have thus been granted the right of access to said infrastructure according to conditions of equality, transparency and timeliness, whereas the entities in possession of the infrastructure may charge a price for such access, necessarily cost-orientated. This right has not been granted without limitation: rather, the situations in which this right is granted are clearly and comprehensively defined.

The effective exercise of this right of access requires the implementation of a Centralized Information System (CIS) containing information which is relevant to ensuring both the right of use of the public domain and the right of access to ducts and other infrastructure suitable for the accommodation of electronic communications networks, thereby constituting a fundamental tool for the development of next generation networks. In order to realize this initiative, in December 2009, ICP-ANACOM launched a public consultation on the format to be used in the provision of information under this system; the deadline for contributions to this public consultation extends until February 2010.

A further important innovation of Decree-Law no. 123/2009 was the creation of the ITUR regime, imposing the mandatory provision of infrastructure in housing developments, urban settlements and concentrations of buildings, associated with the creation of new standards related to Telecommunications Infrastructure in Buildings (ITED), including the imposition of optical fibre. Under the new scheme, the installer is bound to declare the compliance of the infrastructure by means of a term of responsibility, whereas the certification activity is discontinued. Standards were also established governing alterations made to infrastructure in existing buildings to adapt it to optical fibre.

Acting on the provisions of the law on the ITED and ITUR regimes, on 25 November, after extensive consultations launched for this purpose and following notification of the European Commission, ICP-ANACOM gave approval to the final drafts of the corresponding manuals which set out the technical requirements and specifications of ITED (ITED Manual) and ITUR (ITUR Manual). These Manuals came into force on 01 January 2010, with provision made for a transitional period with respect to the ITED Manual until 31 March 2010.

Decree-Law no. 123/2009 was amended so as to extend its application to infrastructure which is suitable for accommodating electronic communications networks held, managed or used by the electronic communications companies, subjecting them to the open access regime. The corresponding legislation - Decree-Law no. 258/2009 of 25 September, adopted under the legislative authorization granted by Law no. 32/2009 of 9 July - also amended the Law of Electronic Communications with respect to regime governing the appeal of ICP-ANACOM acts.

Meanwhile with respect to the issue of network security, this Authority was called upon to formulate a position on a number of initiatives. One of these was the draft constitution of a National Authority for the Registration of Object Identifiers, the need for which was identified in the Managing Council of the Electronic Certification System of the State (Conselho Gestor do Sistema de Certificação Electrónica do Estado) arising as a result of the evolution of networks and electronic communications services to next generation networks. As such, a draft decree-law setting out the respective powers and responsibilities in this context was prepared and presented to the Government.

In addition, a study was undertaken with the aim of defining and characterizing the different types of interdependencies existing between public electronic communication networks and certain private networks of the State, in order to promote their resilience by better controlling the factors which may influence their integrity and availability. The framework of this study was provided by the order of the Minister of Public Works, Transports and Communications of 2 June 2009 (Order no. 16025/2009, published on 14 June), which also determined that it be presented with a period of one year.

ICP-ANACOM further undertook, over the course of 2009, the monitoring of the UMTS Working Group (WG-UMTS), presiding over this group, as also in relation to the associated Validation Committee, all in accordance with Resolution of Council of Ministers no. 143/2006, published on 30 October.

Finally, note should be made of ICP-ANACOM’s involvement, pursuant to the obligations to which it is legally bound (Decree-Law no. 153/91 of 23 April which created SNPCE - Sistema Nacional de Planeamento Civil de Emergência (National System of Civil Emergency Planning), as amended by Decree-Law no. 128/2002 of 11 May), in the work of the Comissão de Planeamento de Emergência das Comunicações (Emergency Communications Planning Committee) - CPEC. In this respect, ICP-ANACOM is charged with providing necessary technical and administrative support, whereby, since 1994, it has assumed all payments arising from the operating expenses of this Committee. Over the course of 2009, the CPEC responded, including through prior consultations of entities of the sector to consolidated positions, to the solicitations of the CNPCE - Conselho Nacional de Planeamento Civil de Emergência (National Council for Civil Emergency Planning) on various matters related to the communications sector (postal and electronic). At an international level, the CPEC provided national representation at various fora and NATO initiatives addressing the issues of communications.

Under its remit with regard to the postal sector and also as part of its role of adviser to the Government, during 2009 ICP-ANACOM engaged in preparatory work for the implementation of Directive no. 2008/6/EC of the European Parliament and of the Council of 20 February 2008, amending Directive 97/67/EC with regard to the full accomplishment of the internal market of postal services, the deadline for which expires on 31 December 2010.

The legal framework for the communications sector likewise merits reference, particularly as it relates to the changes made to its functioning.

Note is made, from the outset, of the approval of the framework regime governing administrative offences within the communications sector - Law no. 99/2009 of 4 September (rectified by Statement no. 75/2009 of 12 October).

In addition, the general regime governing radiocommunications was amended by Decree-Law no. 264/2009 of 28 September, in whose preparation ICP-ANACOM was involved. This law amended Decree-Law no. 151-A/2000 of 20 July, regarding the obligations of users, the transmissibility and revocation of radio licenses and fees. The law made minor updates and amendments to the previous legislation, resulting above all from the experience gained from its application and from the entry into force in 2004 of new legislation on the activity of the electronic communications sector. The new regime also established, as a measure of simplification, that electronic media, as defined and announced by ICP-ANACOM, may be used in procedures which involve communication between this Authority and holders of network or station licensees, in particular as regards the issue, amendment, transfer and revocation of licenses, as well as all requests submitted to this Authority.

In addition, the regime governing the amateur and amateur satellite services was substantially changed with the approval of Decree-Law no. 53/2009 of 2 March, which established rules applicable to these regimes, as well as the regime governing the allocation of certificates and special authorizations for amateurs and the licensing of stations of common use. This legislation entered into force on 1 June 2009.

Likewise, changes were made to the rules governing access to and the exercise of the activity of Audiotext services provider and the rules on advertising for these services, under Decree-Law no. 63/2009 of 10 March.

These changes have extended the rules on advertising and provision of Audiotext services to value-added services based on message sending (SMS - Short Message Service and MMS -Multimedia Messaging Service), with the aim of strengthening the rights of users. Compliance with the new rules became subject to enforcement by ICP-ANACOM, with the Directorate-General for Consumer overseeing advertising for these services.

It is also important to note the new regime governing the provision of promotion, information and support services to consumers and users through customer service call centers - Decree-Law no. 134/2009 of 2 June, which entered into force at the end of November 2009. As such, various responsibilities were conferred upon the sector regulators, including ICP-ANACOM, especially with respect to the verification of compliance with the rules by the sector’s operators.

On 5 August 2009, legislation entered into force, approved in 2008, regulating the storage and transmission of traffic and location data on natural and legal persons as well as the related data necessary to identify the subscriber or registered users, for purposes of investigation, detection and prosecution of serious crime by the competent authorities - Law no. 32/2008 of 17 July. Undertakings providing publicly available electronic communications or providing a public communications network are now required to keep certain specific data for a period of one year, in accordance with Administrative Rule no. 469/2009 of 6 May, in whose drafting process this Authority was called upon to give its position.

International context

As far as international representation of the sector is concerned, note should be made of the developments occurring within the European Union (EU).

In a general context, there were a number of key developments occurring in 2009. Firstly, note is made of the entry into force, on 1 December, of the Lisbon Treaty, through which the European Union was made a single entity with legal personality. The impact of the new treaty on the communications sector, through the clarification and introduction of competencies, will be felt first and foremost in the stronger protection of fundamental rights, in the recognition that services of general economic interest are essential for the promotion of EU social and territorial cohesion - enabling the adoption of horizontal legislation related to the basic principles of the Universal Service in all network industries -and the possibility of using a new legal basis for European action to support voluntary cooperation between national governments, where this might enhance their capacity to implement EU legislation. The Lisbon Treaty also alters legislative procedures, in particular by expanding the application of qualified majority voting, based on the double majority system, and simplifying the applicable conditions.

Meanwhile, on 27 November 2009, the President of the European Commission (EC) announced the distribution of portfolios among the twenty-seven commissioners who, upon conclusion of the associated process, completed in February 2010, will make up the new college - one per Member State, including the president himself. At a sector level, note is made of the inclusion of the Information Society Directorate General (DG INFSO) in the “Digital Agenda” portfolio, with Neelie Kroes appointed as the commissioner responsible, and also EC Vice-President. Meanwhile, Commissioner Viviane Reding moved to Justice, Fundamental Rights and Citizenship, and was also made Vice-President of the Commission.

In 2009, the presidency of the European Union was assumed by the Czech Republic and Sweden successively, with the common goal of giving priority to the adoption of the new regulatory framework for electronic communications. Additionally, the Czech presidency had the objective, which it accomplished, of revising the Directive on the Global System for Mobile Communications (GSM Directive) and the Regulation of international roaming.

Accordingly, the amendment to the latter Regulation was formally adopted by the Council of Ministers in June 2009 (Regulation no. 544/2009 of the European Parliament and of the Council of June 18), setting out the new maximum tariffs applicable to voice communications, text messaging (SMS) and roaming data services from 1 July 2009. In this context, note is made of the awareness campaign launched by this Authority, directed at the general public and providing information on the newly introduced rules.

Meanwhile, the revision of the GSM Directive was adopted, in general terms, in July, leading to the adoption of two new pieces of legislation - Directive no. 2009/114/EC of the European Parliament and of the Council of 16 September 2009, and Commission Decision no. 2009/766/EC of 16 October 2009. As a result, the spectrum band allocated to GSM was opened up to other mobile services, involving 3rd and 4th generation devices, as well as mobile broadband. These new rules will allow GSM equipment (2nd generation mobile equipment) to co-exist with UMTS (3rd generation equipment combining high-speed mobile internet services and traditional telephony) in the 900 MHz and 1800 MHz GSM frequency bands. The twenty seven Member States are bound to implement these measures, in the case of the Directive within a period of six months, so that the frequency bands allocated to GSM can be used for 3rd generation services.

Meanwhile, of key importance was the approval by the European Parliament, on 24 November 2009, of the reform of European legislation on electronic communications, as proposed by the European Commission in November 2007, whose works, at the level of the Council, were closely followed by ICP-ANACOM for the purposes of its role as adviser to the Government.

The new regulatory framework, published in the EU Official Journal on 18 December 2009, includes two pieces of legislation:

• Directive 2009/136/EC of the European Parliament and of the Council of 25 November 2009 (Citizen’s Rights Directive) amending Directive 2002/22/EC on Universal Service and users’ rights relating to electronic communications networks and services, Directive 2002/58/EC concerning the processing of personal data and the protection of privacy in the electronic communications sector and Regulation no. 2006/2004 on cooperation between national authorities responsible for the enforcement of consumer protection laws.
• Directive 2009/140/EC of the European Parliament and of the Council of 25 November 2009 (Better Regulation Directive), amending Directive 2002/21/EC on a common regulatory framework for electronic communications networks and services, Directive 2002/19/EC on access to, and interconnection of, electronic communications networks and associated facilities and Directive 2002/20/EC on the authorization of electronic communications networks and services.

These two Directives must be transposed into the national law of the EU’s twenty-seven Member States by May 2011.

With respect to market regulation, note should be made of the European Commission’s¹ introduction of the following reforms into the new regulatory framework:

• Strengthening of the independence of the National Regulatory Authorities (NRA).
• New powers of the EC in its supervision of the regulatory measures (remedies) proposed by the NRA, in order to avoid inconsistencies in regulation that could distort competition within the single market for electronic communications.
• Allocation to NRA of additional powers to impose functional separation on operators, i.e., to impose the separation of their communication networks from their services areas, as a remedy of last resort.
• Reaffirmation of the importance of next Generation Access Networks (NGA), whereas it is the intention of the Commission to publish a recommendation on regulating access to NGA networks in 2010 based on this new framework and taking into account the results of public consultations held in 2008 and 2009.

The Commission also highlighted a number of benefits which will result from the new framework from the viewpoint of citizens and consumers:

• Introduction of the right of European consumers to switch fixed or mobile operator within the space of one working day, while keeping their old phone number (portability).
• Improved information for consumers, particularly in contracts.
• Introduction of a new legal provision on freedom on the Internet, determining that any measures taken by Member States in order to restrict use or access by end-users of services and applications via electronic communications networks must respect the rights and freedoms of individuals.
• New guarantees of neutrality and openness of the Internet, embodied in the new powers granted to NRA to establish minimum quality standards for the network broadcasting services and in consumer information obligations.
• Mandatory notification in the event of personal privacy violations - the first law of its kind in Europe - which means that telecom operators will be obliged to inform authorities and their customers about security breaches affecting personal data.
• Better access to emergency services, particularly by expanding the requirements of access from traditional telephony to new technologies, strengthening the requirement for operators to provide information on the location of persons making emergency calls, as well as raising awareness of 112, the European Emergency number.
• Helping to expand access to broadband to all Europeans, through more efficient spectrum management and its effective availability for the delivery of broadband services in regions where it is too costly to build out fibre infrastructure, enabling Member States to extend the requirements of Universal Service beyond narrowband Internet access. The reform places much greater emphasis on flexibility in the use of spectrum, in terms of technology and services, generating significant economic gains.

Additionally, 18 December saw the publication of Regulation no. 1211/2009 of the European Parliament and of the Council of 25 November 2009, establishing the Body of European Regulators for Electronic Communications (BEREC) and the respective office. This regulation, which constitutes a sectorial reform of extreme importance, is directly applicable in the legal framework of Member States, entering into force 20 days subsequent to the date of its publication. BEREC, which will replace the European Regulators Group (ERG), is formed by the national communications regulatory authorities of the twenty seven Member States of the European Union and is assisted by an office which will provide the necessary professional and administrative support; its aim is to contribute to ensuring fair competition and greater consistency in the regulation of electronic communications markets. The first meeting of BEREC took place in January 2010 in Brussels.

In conjunction with this set of legislation, approval was also given to Commission Decision no. 2009/978/EU of 16 December 2009, amending Decision 2002/622/EC, which had instituted the Radio Spectrum Policy Group (RSPG). With this amendment, the role of this group in advising the Commission in the preparation of draft programmes regarding the spectrum is fully enacted.

Finally, in association with this piece of legislation, the Commission published a declaration on net neutrality on the same date.

Meanwhile note should be made of the European Commission’s adoption of a set of recommendations and decisions implementing various aspects of the regulatory framework.

In the Communications Committee, the following documents were adopted in 2009:

• Committee Opinion on the 116 and consequent Decision.
• Report on EU broadband data (compila>
• Report on EU broadband data (compilation of data corresponding to 1 January, annual report, and 1 July, semiannual report).
• In the context of Decision no. 626/2008/EC, which sets out, at European level, to create a common procedure for the selection of the operators of mobile satellite systems and to establish provisions for the coordinated authorization by the Member States of MSS operators selected to operate in the 2 GHz band, Decision 2009/449/EC was published on the selection of operators.
• Commission Recommendation on termination rates.
• Regulation amending Regulation (EC) no. 874/2004 of 28 April 2004 laying down public policy rules concerning the implementation and functions of the “.eu” top level domain and the principles governing registration.
  
  At the level of the Spectrum Committee, four notable Decisions were adopted in 2009 related to the use of the radio spectrum in the following specific areas:
  
  
• On allowing the use of the radio spectrum for equipment using ultra-wideband technology in a harmonized manner in the Community (Commission Decision of 21 April 2009 amending Decision 2007/131/EC).
• Harmonization of the radio spectrum for use by short-range devices (Commission Decision 2009/381/EC of 13 May, amending Decision 2006/771/EC).
• Selection of operators of pan-European systems providing mobile satellite services - MSS (Commission Decision 2009/449/EC of 13 May).
• Harmonization of the 900 MHz and 1800 MHz frequency bands for terrestrial systems capable of providing pan-European electronic communications services in the Community (Commission Decision 2009/766/EC of 16 October).

Other relevant measures and policies have been adopted in various contexts, notably in the Council, focusing on issues such as the digital dividend, network and information security, the post-i2010 strategy and the e-accessibility (next generation networks and broadband, the impact of the economic crisis on ICT and how ICT might drive the EU economy).

This Authority’s presence within the scope of the European Union encompasses the Committees established by European sectorial directives, such as the Communications Committee, the Radio Spectrum Committee and the Postal Committee. This participation focused, on the one hand, on safeguarding the specificities of the national market and, on the other, on supporting proposals to develop the sector.

Meanwhile, between 22 and 24 April 2009, Lisbon hosted the 4th World Telecommunication Policy Forum (WTPF) of the International Telecommunication Union (ITU), a specialized United Nations agency for telecommunications. The organization of this event started in 2008, following the government’s decision to host this event in Portugal and to delegate the preparations involved to ICP-ANACOM.

The WTPF is held on a non-regular basis by the ITU with the goal of promoting discussion and the exchange of views on emerging issues of regulation and telecommunications policy. The main topics discussed at WTPF-09 were as follows: i) public policy issues related to the Internet, ii) next generation networks, iii) emerging telecommunications policy and regulatory issues; and iv) analysis of new and emerging issues related to the ITU’s International Telecommunications Regulations.

The event, at which the Secretary of State Assistant and for Public Works and Communications presided, was very well attended and saw the presence of several Ministers, Deputy Ministers and heads of regulatory authorities. Besides the report of the Forum Chairman, approval was given to the “Lisbon Consensus”, which includes a series of opinions on the Internet, next generation networks, concerted strategies to foster trust and confidence in the use of ICT, as well as on the training of human resources to support the implementation of IPv6.

The WTPF was preceded, on 21 April, by the Strategic Dialogue on Information and Communication Technologies (ICT), held on the theme “Confronting the Crisis”. Proceedings were divided into four sessions, which focused on the following subjects: the nature of the crisis and future forecasts; the strategic importance of ICT and the role of investment and funding in overcoming the crisis; the importance of more appropriate regulation; the relevance, from an industry point of view, of economies of scale and low cost equipment and more efficient spectrum use.

This Authority was also involved, acting on behalf of the Government, in organizing the 1st Ibero-America Conference, which was held on 8 July and brought together Ibero-American Ministers of Communications to discuss the promotion of access to information and knowledge. The conference’s aim was to provide an opportunity for joint reflection on the policies being developed by the various countries to promote investment in telecommunications infrastructure and universalizing access to such infrastructure; the findings were submitted to the Heads of State and Government meeting on 30 November and 1 December in Portugal at the XIX Ibero-American summit, held on the theme Innovation and Knowledge.

ICP-ANACOM also provided national representation in the Assembly of Parties held in 2009 within the scope of the European Telecommunications Satellite Organization (EUTELSAT IGO) and the International Telecommunications Satellite Organization (ITSO).

In the context of the postal sector, the 21st Congress of the Postal Union of the Americas, Spain and Portugal (UPAEP) was held in Chile in August 2000, the national delegation to which included ICP-ANACOM.

Regulation of the communications sector

Electronic communications

In the exercise of the regulatory activities of ICP-ANACOM in the area of electronic communications, various measures adopted in 2009 merit note, in connection with the oversight of the evolution of the wholesale offers of companies with significant market power, and also related to the analysis of the different markets in applying current national and European regulation, which actions are encompassed by the remit of national regulatory authority and also have the objective of protecting users.

In the context of markets 4 and 5 (wholesale (physical) of network infrastructure access at a fixed location and wholesale broadband access), and upon conclusion of the internal and external hearing procedures (including of the European Commission and the NRA of the other Member States) approval was given in January 2009 to the corresponding final decision. The approach, already provided for in the draft decision, incorporates the geographical segmentation of market 5, comprising the lifting of regulatory obligations imposed on Grupo PT (PT Group) in a geographical area considered competitive, encompassing 61 % of broadband accesses. In market 4, all prior obligations were maintained, whereas provision was made in both markets for the possibility of imposing obligations in respect of accesses based on optical fibre.

In December 2009, approval was given to the draft decision on the leased lines market (retail, wholesale and transit), whereas the corresponding final decision is due to be approved in 2010 upon conclusion of the associated consultation procedures.

The wholesale markets of voice call termination on individual mobile networks, including the obligation of price control, were also examined during 2009, with the corresponding draft decision approved in January 2010.

The RIO 2009 (Reference Interconnection Offer) of PTC was amended by a decision of this Authority, approved in March, with the introduction of a number of modifications related to applicable price caps, specifically in the activation of pre-selection and interconnection of calls originating from the company’s public payphones, taking force as from 1 January 2009. The determined changes also involved the sending, on an annual basis, of the breakdown of the costs of the billing and collection service, and the inclusion of certain conditions for the 708xy range (retail price and interconnection conditions).

In March, approval was given to the final decision determining the publication by the companies of PT Group of the performance levels in terms of quality of service in the following wholesale offers: RUO (Reference Unbundling Offer), RLLO (Reference Leased Lines Offer), RDAO (Reference Ducts Access Offer), Rede ADSL PT and SLRO (Subscriber Line Resale Offer). According to this decision, as of October 2009 and January 2010, the companies of PT Group are obliged to publish and make available to end-users, to the beneficiaries of their wholesale offers and to this Authority, an important set of information according to the applicable indicators.

Meanwhile, in August and November 2009 respectively, approval was given to the draft decisions relating to amendments to be made to RIO and RDAO, both subject to public consultation. The adoption of the corresponding final decisions is due in 2010.

Following up on the initiatives taken with respect to the price of the wholesale call origination service charged by operators of the mobile telephone service, in 2009, this Authority continued its close oversight of the evolution of this price, particularly in the light of the position issued on the subject in 2008, whereby operators were called upon to lower these prices, aligning them more closely to those charged for voice call termination on individual mobile networks.

With regard to next generation networks, in February 2009, approval was given to the report of the public consultation, launched in 2008, on the respective regulatory approach.

Meanwhile, analysis continued in 2009 in relation to the assessment of net costs incurred in the provision of the Universal Service in electronic communications, and regarding the methodology to be used in the calculation of such costs and the conditions whereunder its provision may be deemed to constitute an excessive burden which justifies the establishment of a compensation mechanism.

Over the course of 2009, this Authority also conducted analysis of the compliance of tariff proposals associated with the Universal Service, including public payphones. Furthermore, the declaration of conformity of the analytical accounting system of PTC was approved and published, following the audit of the results of 2004 and 2005. Concerning the year 2006, the respective audit was awarded in August 2009, accompanied by the development of a detailed, systematic and comprehensive analysis of the system.

The draft decision submitted to public consultation in November 2009 on the methodology for calculating PTC’s cost of capital with respect to the 2009-2011 three-year period was made into a final decision in February 2010. ICP-ANACOM considered a linear and annual 1.0 % decrement rate for the value of the rate of cost of capital between 2009 and 2011, until the defined value is achieved in 2011 - 10.3 %.

In the meantime an award was made for the execution of a consultancy study on the incumbent operator’s curtailment costs and a tender was launched for the award of a study on implementing a cost accounting system for mobile terminations, in accordance with the Commission’s recommendation on this matter. Audits of PTC’s analytical accounting system were also concluded (2004/2005).

Meanwhile, in June 2009 and following a public consultation launched for that purpose, approval was given to the final decision on the adaptation of the National Numbering Plan (NNP) to the amendments made to Decree-Law no. 177/99 of 21 May, as determined by Decree-Law no. 63/2009 of 10 March, which established new rules for message-based valued added services. This change involved the creation of codes, as well as the definition of conditions governing the allocation and use of numbers comprised in these codes.

Additionally, four regulations were approved in 2009 (two of them on the same subject):

• Regulation amending the Portability Regulation, adapting it to the innovation and dynamics of the market and also responding to the difficulties raised by several operators (Regulation no. 87/2009 of 4 February, published on February 18, the consultation procedure for which was begun in 2008). Note should be made, with respect to this new regulation, that, the suspension of the validity of a rule was requested by a number of companies (PTC, TMN - Telecomunicações Móveis Nacionais and PT Prime), which request was denied by this Authority on the grounds that any deferral in its application would be seriously detrimental to the public interest. Subsequently, the Lisbon Administrative Circuit Court dismissed the corresponding precautionary procedure applied for by these companies.
• Second amendment to the Portability Regulation, with the sole purpose of clarifying that the deadlines set forth therein and those included in the Specifications for Portability are equivalent (Regulation no. 302/2009, published on 16 July, following procedures initiated in April).
• Regulation no. 99/2009, approved on 4 February and published on 23 February on the provision to authorities responsible for providing emergency services of information on the location of callers to the single European emergency number 112 (L112 Regulation), the draft of which was approved in 2008.
• Regulation amending the 2005 Quality of Service Regulation, applicable to companies providing the service of access to the public telephone network at a fixed location and the publicly available telephone service at a fixed location (Regulation no. 372/2009, approved on 19 August and published on 28 August, with rectification on 6 October, the consultation process for which was begun in 2008). The introduced modifications adapted the original Regulation in order to provide users with access to timely, clear and comparable information on quality of service, enabling the choice of the provider which is best suited to meeting their needs; likewise certain concepts and provisions were clarified, while mechanisms were established which might contribute to the better dissemination of information to users on the quality of service, as well as more effective verification, by ICP-ANACOM of its compliance; additionally adjustments were made to certain parameters to make it easier for end-users to understand them and so that they better reflect the issues of quality of service in the fixed telephone service which are currently most pressing.

It also important to note the decision of this Authority in July 2009 on the synchronization between number portability and local loop unbundling, in order to resolve detected problems. Accordingly, the immediate amendment of the RUO was determined, so as not to impede the full entry into force on 20 July, of the referenced Regulation no. 87/2009.

This Authority also examined and decided, over 2009, on several disputes submitted to it, occurring between operators on various matters. The activity of ICP-ANACOM as national regulatory authority also requires an intense level of international intervention, whereas note should be made of ICP-ANACOM’s active presence at meetings of the ERG (European Regulators Group) and IRG (Independent Regulators Group). These groups have been engaged in important work on harmonization, through the adoption of common positions and reports, whose effects are increasingly reflected in the national regulatory framework and the decisions taken by this Authority. Within the scope of the ERG, this Authority’s contribution should be highlighted in terms of various adopted measures, such as the new version of the guidelines on the implementation of the international roaming Regulation, reports on the replicability of bundles and margin squeeze in bundles, data on mobile terminations, transition from sector-specific regulation to competition law, fixed-mobile convergence, transparency of tariff information, economic analysis and regulatory principles of next generation networks and price consistency in broadband markets. Some of these measures also focused on issues related to the radio spectrum (spectrum transition, competition and the spectrum, digital dividend).

Note should likewise be made of participation in the Organization for Economic Cooperation and Development (OECD), in particular with respect to the Committee for Information, Computer and Communications Policy (ICCP) and its working groups.

Meanwhile, next generation networks were the subject, among other issues, of technical analysis at the European Telecommunications Standards Institute (ETSI), in which this Authority is represented at various levels.

Radio spectrum management

With particular regard to the activity of this Authority in 2009 in the field of spectrum management, which also comprises its regulatory remit associated with the electronic communications sector, several areas should be highlighted:

• Implementation of the new tariff scheme for the use of frequencies, as defined by Administrative Rule no. 1473-A/2008 of 17 December, occurring for the first time during 2009. This Administrative Rule, rather than establishing the fees which constitute revenues of ICP-ANACOM, establishes a fee model which has the objective of achieving efficiency in the use of spectrum, making a break from the previously established model. The application of fees based on allocation and not on use, provides strong incentives for the efficient use of this resource.
• Effective spectrum planning required, as is performed annually, the revision of the National Frequency Allocation table (NFAT), adjusting the allocation table to reflect new decisions of the ECC (Electronic Communications Committee of CEPT) and EC (European Commission), updating the information on the use of frequency bands with reference to 15 July 2009, on the spectrum available for the different radio services and contained in the Annex on equipment using Ultra Wideband (UWB); whereas, at the same time, amendments were made to the annexes on license-exempt equipment and the amateur and amateur satellite services - accordingly the draft of the new NFAT 2009/2010 was submitted in late December 2009 to the general procedure of consultation, whereas the final decision is due in 2010.
• With respect to Broadband Wireless Access (BWA), and with the aim of encouraging new entrants to the broadband market and contributing to a reduction in the digital divide in certain geographical areas, and following broad consultation, ICP-ANACOM gave approval, in October 2009, to the Regulation governing the auction for the allocation of rights of use of frequencies in the 3400-3600 and 3600-3800 MHz band. Likewise, a guide to the auction proceedings was published and an information campaign was launched at national and international level, which included a public briefing session on 10 November 2009. Following the deadline for the submission of applications on December 17, three applicants applied (Bravensor, Municipality of Sintra and Onitelecom) and were admitted to the auction. The process will continue in 2010 with the bidding stage comprising the presentation of proposals for the lots that comprise the nine areas into which this Authority has decided to divide the country for the purpose of allocating the corresponding rights of use of frequencies.
• In June 2009, approval was given to the public consultation report released in late 2008 to sound out the Portuguese market with respect to interest in the availability of the 2500-2690 MHz frequency band for the operation of public available electronic communications services. The responses to the consultation revealed a widespread interest in the band at national level, whereby ICP-ANACOM will make the relevant spectrum available in compliance with Commission Decision 2008/477/EC. Other points raised in the consultation report relate to the combination of this band with others, both in terms of the assignment process and in provision, and also to technical implementation and the timetable for implementation.
• The digital dividend - the spectrum in the VHF and UHF bands, resulting from the conversion of services from existing analogue terrestrial television programmes into digital format - was submitted to public consultation launched by ICP-ANACOM in March 2009, with the corresponding report receiving approval in July. The relevance of this issue led to a strong response to the consultation from many different market stakeholders, which was not unconnected with the workshop on the subject, held in April. The consultation report comprised the general position of ICP-ANACOM on the subject, in which note should be made of the indication that the view taken by this Authority tends towards the allocation of the 790-862 MHz sub-band for wireless broadband applications, according to the WAPECS principle. In any case, as has been pointed out by this Authority from the outset, the position then transmitted to the market constitutes a starting point and an underlying guideline for future decision-making processes on the matter. The digital dividend also gave rise to European initiatives, such as the consultation, which was held from July to September 2009 and to which ICP-ANACOM responded, and the documents - Recommendation and Communication to the European Parliament and to the Council - subsequently approved (in October), with the aim of setting out a road map for coordination on this issue.
• The entry into force, on 1 June 2009, of Decree Law no. 53/2009 of 2 March led to the amendment of Annex 6 to the NFAP, decided in May, and to the approval (in April) of the widely announced procedures for the amateur service. This Decree-Law set out the rules governing the amateur and amateur satellite services and the regime governing the allocation of permits and special authorizations and licensing to amateur stations of common use, updating and simplifying the rules governing use of the amateur radio service from a technical point and the administrative procedures for the exercise of the corresponding activity.
• The approval of Decree-Law no. 264/2009 of 28 September, by which this authority is bound to define and give notice of the electronic media which can be used in the procedures associated with the licensing of networks or stations, led to the approval of the draft decision on the availability and use of electronic media in communications on this subject at the end of 2009 and its submission to public consultation.
• By determination of 7 January 2009, approval was given to the proposal submitted by the tender Committee to allocate the right of use of frequencies, on a national basis, to RNT - Rede Nacional de Telecomunicações, in the 450-470 MHz frequency band for the provision of the publicly available Land Mobile Service (LMS). Thereafter, by decision of May 2009, the act of granting the right of use of frequencies to RNT was repealed, since the company, following the postponement of the deadline, failed to increase the provisional bond required under the Tender Regulation. The decision led to the forfeiture of the provisional bond provided by the company. Also in this context, in January 2008, ICP-ANACOM decided, through the amendment of the authorization title and upon request, to allow providers of the mobile trunking services (SMRP) to offer publicly available LMS in the 450 - 470 MHz band on the conclusion of the tender mentioned above; however, no such applications were submitted by SMRP providers.
• In 2009, work was also begun to develop a software solution (Identification of requirements and definition of specifications), known as e-NFAP, for the implementation of a portal providing information on frequencies, allowing information on national frequency planning, assignments and spectrum use to be searched and viewed in a simple, intuitive and interactive form.

Throughout 2009, updates were also made to: the National Agreement for Sharing of frequencies in Times of Peace (ANPF/1999), the document which reflects the agreements reached in 1999 between ICP-ANACOM and the Armed Forces General Staff/ Communications and Information Systems Division (EMGFA/DICSI) on the sharing of radio spectrum. This update follows up on the amendments to the Radio Regulations introduced by World and Regional Radiocommunication Conferences held in the meantime under the auspices of the ITU, on bilateral agreements and also on European decisions taken in the field of spectrum management. Therefore, in late 2009, an update of the National Agreement for Sharing of frequencies in Times of Peace (ANPF/1999) was approved and endorsed by EMGFA/DICSI and by this Authority, entering into force on 16 December 2009.

Furthermore, a bilateral protocol was signed between this Authority and INAC - Instituto Nacional de Aviação Civil (National Civil Aviation Institute), in which clarification is given to the procedures to be followed by the two authorities in the process of allocating frequencies for aeronautical radio services and determining the procedures to be followed on issues involving the management of frequencies and arising from the technical representation of the Portuguese State at civil aviation Organizations. Clarification was also made of the situation on the licensing of stations installed in aircraft, deciding that all stations of the aeronautical mobile service and the radiodetermination service installed in aircraft should be exempt from licensing, provided that that they are covered by INAC certification.

Meanwhile, upon conclusion of the applicable regulatory procedure and following prior notification to the European Commission, approval was given to Regulation no. 256/2009, published on 23 June, which sets out the rules governing the identification of fixed radio stations, as well as station information signs at the locations where these stations are installed.

By its very nature, effective spectrum management calls for close international coordination. As such, ICP-ANACOM provides national representation at various venues, under the auspices of the European Union, particularly at the RSPG, the CEPT, and the ITU.

Note should also be made of the usual bilateral meetings held to coordinate frequencies. In 2009, two such meetings were held, one (in May) between Portugal (represented by this Authority) and Morocco and the other (in December) between Portugal and Spain.

Postal services

With respect to the postal sector, several specific areas were analyzed as a result of ICP-ANACOM’s regulatory remit, including the Universal Service tariff and statistical data to be reported by postal services providers.

In this context, audits were concluded in 2009 of the analytical accounting system of CTT - Correios de Portugal  (2005/2006); while at the same time auditing and consultancy was undertaken with respect to the examination of the results of 2007 and the process was begun to award the audit of the 2008 results. Likewise an audit was carried out with respect to the indicators of quality of service in 2008, whose findings will be released in 2010.

An analysis was also made of several notifications received from CTT on the opening, closure and increase or reduction in the opening hours of post offices. In 2009, a slight increase was reported in the total number of postal establishments, as a result of growth in the number of postal service offices.

In terms of international representation in this area, note should be made of ICP-ANACOM’s active participation in relevant groups, both the Universal Postal Union (UPU) and the CEPT, within the European Committee for Postal Regulation (CERP). This Authority also participated in the first “Postal Regulatory Dialogue” organized by the Postal Regulatory Commission of the United States, taking place in the United States in March 2009.

Other relevant activities

As part of its activity, in 2009, ICP-ANACOM maintained it usual institutional relationship with several national entities, such as AdC - Autoridade da Concorrência (Competition Authority), ERC - Entidade Reguladora para a Comunicação Social (the Regulatory Authority for the Media), the Court of Auditors and the Ombudsman.

Regarding international institutional cooperation, emphasis must be given to the regular cooperation carried on in 2009 within the scope of Regulatel - Latin-American Forum of Telecommunications Regulatory Authorities, whose mission is the exchange information on the regulatory framework of each Board member, with the aim of fostering cooperation and coordination in telecommunications, promoting the development of the sector in Latin America.

Furthermore, regular intervention was maintained with respect to the Euro-Mediterranean Network of Regulators (EMER), which was created in June 2008 with ICP-ANACOM as a founding member. The EMERG, which brings together representatives of regulators of the electronic communications sector from around the Mediterranean region, including members of the IRG, from North Africa and from the Middle East, is partially funded by the European Union.

Within the framework of ICP-ANACOM’s relationship with Portuguese-speaking countries, and following its formalization in October 2008, the first general assembly of the Association of Communications and Telecommunications Regulators of CPLP (ARCT-CPLP) was held in 2009, with elections held to the Association’s management bodies, whereby the secretariat was secured by ICP-ANACOM. In addition, throughout 2009, ARCTEL developed an important set of initiatives, with the marked involvement of this Authority.

In this context, note is made of the initiative taken, in light of the needs for training identified individually within each of the countries comprising the Association, to promote the development of tailor-made courses. To this purpose, a protocol of action was established between this Authority and Instituto Nacional de Administração (National Administration Institute) - INA, providing a basis for the first Advanced Course for Technicians and Managers of ARCTEL, held at the end of 2009 and attended by twenty-one graduate trainees from CPLP regulators, excluding East Timor and Portugal.

Additionally, through the Centre of Excellence for Portuguese and Spanish speaking African countries (ITU CE), based on the agreement concluded in 2008 with the ITU, permanent training activity was maintained during 2009, in which ICP-ANACOM participated continuously, in cooperation with the ITU. Accordingly - a completion rate of 90 % was reported for the 2009 training programme over the plan.

In addition to these initiatives in multilateral venues, various institutional actions were undertaken in 2009 of a bilateral nature with all of ICP-ANACOM’s counterparts in Portuguese-speaking countries, including Instituto Angolano das Comunicações (INACOM), Agência Nacional de Telecomunicações, Brazil (ANATEL), Agência Nacional das Comunicações, Cape Verde (ANAC), Instituto das Comunicações da Guiné-Bissau (ICGB), Instituto Nacional das Comunicações de Moçambique (INCM), Autoridade Geral de Regulação, Sao Tome and Principe (AGER) and Autoridade Reguladora das Comunicações, East Timor (ARCOM).

In the case of the bilateral relationship between ICP-ANACOM and ANATEL, note is made of the promotion of a study, performed as part of a scientific research project, on broadband, with particular focus on mobile broadband.

Meanwhr focus on mobile broadband.

Meanwhile, close cooperation with ANAC led to the establishment in March 2009, of a protocol with Agência para a Sociedade do Conhecimento (Knowledge Society Agency) - UMIC and Fundação para a Computação Científica Nacional (National Scientific Computing Foundation) - FCCN, as well as ICP-ANACOM, with the aim of providing the University of Cape Verde (UNICV) with access to the Online Knowledge Library (b-on).

ICP-ANACOM continued to be intensely engaged, in 2009, in the disclosure of information which is relevant to the market, particularly through its annually produced institutional publications, some of which are required by statutory obligation: the Annual Report and Accounts, the Activities Report, the Regulation Report and the State of Communications, all relating to 2008, in addition to the Communications Sector in Portugal Yearbook (2009 edition) and the Management Plan for the next three-year period (2010-2012).

The practice was also continued of providing regular disclosure, on a quarterly basis, of statistics relating to the different national markets encompassed by the scope of this Authority’s intervention: fixed telephone service, mobile telephone service, Internet access service, subscription television services and postal services operated in competition.

In this context it is important to note the more illustrative data reported in 2009. In the area of electronic communications services, the number of subscribers to the mobile telephone service increased by 6.5 %, with 15.929 million subscribers reported at the end of the year, and the penetration rate rising to 149.9 subscribers per hundred inhabitants; meanwhile the number of the active users of UMTS services (5.9 million) represented, 16.2 % of the total at the end of 2009, while potential users (with access to these services) accounted for 37.6 %.

Note should also be made of the growing number of Internet users with access to mobile broadband (more than 59 %, with 3.8 million users in total at the end of the year), outpacing fixed broadband (growth of 14 %, with a total of 1.87 million customers, representing about 98 % of all customers of the fixed Internet access, i.e. 1.9 million).

Likewise, the fixed telephone service has also grown compared to 2008. The number of accesses installed at customer request increased by 6.4 %, with the exponential growth of VoIP access being of particular note. However, the number of public pay phones continued to decline (-8.5 % compared to 2008. Meanwhile, the share of companies comprised by PT Group declined by 6.4 %age points (to 62.2 %).

Statistics on subscription television services are prepared taking into account the different technologies in the market (cable and satellite distribution networks, distribution over the public telephone network, over fibre and using fixed wireless access). With regard to cable, at the end of 2009, it was reported that there was a total of 4.3 million cabled households, which represents an increase of 87 thousand more households over the year, while the number of subscribers declined annually by 1.5 %, to a total of 1.45 million. Growth was also reported for the satellite television service, using Direct to Home (DTH) technology, with an increase of 9.9 % in 2009, and a total of 645 thousand subscribers reported at the end of the year. IPTV also grew at a fast pace (79.8 %), totaling 401 thousand subscribers at the end of period. The number of subscribers to subscription TV supported over optical fibre (FTTH / B) reached a total of 31 thousand by the end of the year.

In relation to postal services, total traffic was reported as comprising 1.177 billion items in 2009, representing a decline over the year of 5.7 %. In the liberalized area, which represents about 22 % of the total, Grupo CTT was responsible for 90 % of domestic traffic and 82 % of outgoing international traffic.

ICP-ANACOM’s practice of providing information from the perspective of users of communications services was accomplished through the preparation of quality reports, based on studies of quality of service conducted by this Authority, covering mobile networks and services (voice services (GSM), video-telephony (UMTS) and network coverage (GSM and WCDMA) in the major urban areas and along the main roads of Mainland Portugal), and also the broadband Internet access service.

Various studies and reports were prepared and released over the course of 2009, in some cases using the help of external bodies, covering relevant issues (functional vertical separation in the electronic communications sector, indices measuring broadband penetration, the postal establishment network of CTT, comparisons of prices of the universal postal service in the European Union, e-initiatives) as well as consumer surveys (for both electronic communications and postal services).

Note should be made in this context, of the study of ECSI Portugal - National Customer Satisfaction Index, carried out by a team consisting of the Portuguese Quality Association (APQ), the Portuguese Quality Institute (IPQ) and the Higher Institute of Statistics and Information Management at Universidade Nova de Lisboa (ISEG-UNL). The study covers a number of sectors including the communications sector, particularly fixed and mobile network services, Internet access (fixed and mobile), subscription television and the postal service, with the relevant chapter sponsored exclusively by this Authority. In 2009 the work undertaken with respect to 2008 was released.

In the context of providing information, two platforms are of particular relevance: ICP-ANACOM’s website (www.anacom.pthttps://www.anacom.pt/render.jsp?categoryId=2958) and the monthly newsletter Spectru.

These platforms are used regularly to announce the measures adopted by this Authority, while maintaining the practice of broadly sounding out the market, using the general consultation procedure, as legally enshrined. As such, 16 consultations were launched over the course of 2009, focusing on a range of different issues, with the conclusion of a further five consultations launched in 2008 and one launched in 2005. Even so, these consultations do not complete the hearing process, since, pursuant to the Code of Administrative Procedure, prior hearings of stakeholders must be held on an important set of decisions. These are preceded, where applicable, by the corresponding “draft decisions”.

During 2009, around 150 decisions with impact on the market were published on ICP-ANACOM’s website; many of these were preceded by “draft decisions”, as such submitted to the interested parties for comment and response.

A year after its renovation, which occurred in 2008, a host of new features were incorporated into the website, key among which was the presentation of a mobile versionhttps://www.anacom.pt/render.jsp?categoryId=2958. In addition, a system was implemented which monitors page visits and provides users with data on the pages receiving the most visitors, the tags (terms that comprise ICP-ANACOM’s own taxonomy) that are most used and the content types which are most viewed by all those who visit the website.

Early in the second half of 2009, ICP-ANACOM became present on Twitter, a Web 2.0 social networking site, which enables the regulator to bring news of its activities faster to its public and to reach more people, enhancing the reach of news published on www.anacom.pthttps://www.anacom.pt/render.jsp?categoryId=2958, both in Portuguese and English (http://twitter.com/ICP_Anacomhttps://twitter.com/_ANACOM_).

Moreover, in order to strengthen the guarantee of widespread and general access to the information made available - primarily through its web site - by all users, including people with special needs, an expert analysis of the website’s accessibility was ordered in 2009. This work was ordered from the team Human-Computer Interaction and Multimedia (HCIM), an integral part of LaSIGE Research Laboratory, based in the Sciences Faculty of Universidade de Lisboa. The study conducted an evaluation of good accessibility practice followed in the design, development and maintenance of ICP-ANACOM’s website. The release of the results of the study were carried over to 2010.

Throughout 2009, the spread of information about the sector was also enacted through the organization of various events, not only directed at communications sector participants but also at the general public.

As such, on 30 September 2009, ICP-ANACOM held its third annual conference, on the theme “20 Years Later: Why Regulate?”. This was a key event in the commemorations of ICP-ANACOM’s twentieth anniversary, marking the date on which the first management board of the then Instituto das Comunicações de Portugal (ICP) took up their posts, occurring on 6 November 1989. This initiative provided an opportunity for joint reflection on the major issues that currently face regulation of the communications sector, also on a prospective basis, taking account of the lessons of the past.

The work undertaken centered on four main themes: “20 Years of regulation: building the future with the present and past”; “Regulate for investment? Competition as a driver to invest, Spectrum and competition: regulating the next 20 years”, and “Governance of Regulation: scope, legitimacy and accountability”. To present and launch the debates which took place on these issues, the Conference was attended by speakers of recognized merit, including former chairmen of ICP-ANACOM’s Management Board.

Also to mark the anniversary of this Authority, a special edition was produced of the newsletter Spectru - ICP-ANACOM, 20 Years of Regulation - distributed in November 2009.

ICP-ANACOM also organized the 3rd Congress of the Portuguese Committee of URSI, held on the theme, "Radiocommunications: from the Earth to the Universe", with a technical display organized and taking place in parallel. This Congress, held on 3 and 4 November 2009, was preceded by an invitation to academia to present proposals for works in areas related to its theme (call for papers).

Additionally in 2009, the Portuguese Committee of URSI, with ICP-ANACOM’s sponsorship, introduced the “URSI Portugal Research Prize”, with the purpose of stimulating creativity and rigor in the work of scientific research in Portugal through the award of an annual prize to reward the best research work in the field of radio-electricity, which nonetheless was not awarded in 2009. In addition, with the support of the Authority, the Portuguese Committee of URSI has started to allocate an annual career prize, to reward excellence in a Portuguese scientist who has contributed to the advancement of radio science in Portugal in recent years. In 2009 the prize was awarded to Professor Carlos Salema.

Note should likewise be made of the various Workshops, promoted and/or organized by ICP-ANACOM, which took place during 2009:

• OECD-ANACOM “Expert Workshop on Measuring Mobile/ Wireless Service Data” (February), organized in association with the Organization for Economic Cooperation and Development (OECD);
• OECD-WPISP Expert Workshop on “Sensors Based Environments” (June), also organized jointly with the OECD;
• Workshop: “Digital Dividend: Market Challenges and Public Interest Goals” (April), initiative that acted as a catalyst for the public consultation on the digital dividend, launched on 30 March 2009;
• Workshop: “Resilience of Electronic Communications Infrastructures” (May), organized with the support of the European Commission and the cooperation of the European Network and Information Security Agency (ENISA) and Bell Labs;
• Workshop CNSA-LAP “Fighting Spam” (October), an initiative of the Contact Network of Spam Authorities (CNSA) and the London Action Plan (LAP);
• Workshop “ENUM: Which Future?” (October) on ENUM functionality (Telephone Number Mapping);
• Workshop  “Application of the R&TTE Regime in Portugal“ (December), which had the aim of providing a venue for debate that might contribute to the clarification of key issues related to the putting into service of radio equipment and telecommunications terminal equipment by manufacturers and/or distributors.

The year was also marked by the continuance of the “ANACOM Seminars” initiative, which seeks to promote knowledge, reflection and debate on various topics of importance to the communications sector, through the presentation and discussion of academic and other papers or projects by national and foreign authors. The seminars focused on the following topics:

• “The hidden elements of per-second billing”, Pedro Pita Barros and Steffen Hoernig, Faculty of Economics, Universidade Nova de Lisboa (January).
• “The Work of the Communications Consumer Panel”, Roger Darlington, Ofcom (Office of Communications), United Kingdom (March).
• “Communications Industries: Consumer Markets and Consumer Strategy”, Marek Havrda, Health and consumer protection Directorate-General, European Commission (April).
• “The Future Direction of regulation”, Michael Crew Centre for Research in Regulated Industries (CRRI), Rutgers University (October).

Additionally, a series of seminars was held in Lisbon, Oporto, Algarve, Azores and Madeira, in September and October 2009 on “The new ITED-ITUR regime”, with the aim of providing an opportunity to discuss and clarify issues related to the new legal regime governing telecommunications infrastructures in buildings and telecommunications infrastructure in housing developments, urban settlements and concentrations of buildings, including the corresponding draft technical manuals.

ICP-ANACOM also hosted several technical meetings of groups of international organizations in which this Authority participates in the context of its duties to provide representation of the communications sector, such as the IRG, CEPT and the European Network and Information Security Agency (ENISA).

The direct relationship with the public has two main guises: first, the direct provision of various services to market participants (especially with respect to electronic communications and postal services and services of the information society, Citizens Band - CB, the amateur service, private networks, broadcasting services and the ITED and ITUR schemes); and, secondly, through the handling of requests about the market, including complaints filed by users of different services and by the general public, on the functioning of markets, which have grown exponentially. In this context, in 2009, 41.989 complaints were received, representing an increase of 24 % when compared to the volume received in 2008.

Because of the importance given by ICP-ANACOM to its relationship with the public, continued priority was given, in the framework of its legally prescribed responsibilities, to the provision of information to interested parties, including through the provision on its website, of specific content on key issues as they arise.

An example of this work is provided by the information made available and regularly updated on numbering and portability, on the Eurotariff (roaming) and on the tariffs in force for the land mobile service (through the Tariff Monitor (Observatório de Tarifários) available on ICP-ANACOM’s website), as well the clarifications which are provided whenever deemed necessary. In 2009, such clarifications have focused in particular on message-based valued added services, on the refusal of electronic portability requests and on the inclusion of subscriber data in the directories and information services of the Universal Service.

The year was also used to prepare a specific area to provide “consumer support”, launched in January 2010.

Furthermore, based on the study conducted in 2008 on the evaluation of the out-of-court settlement of disputes, and in accordance with its 2009-2011 Management Plan, ICP-ANACOM proceeded with the project to create the national arbitration centre for the electronic communications sector, whereby this Authority undertook the tasks required to set up the centre, in conjunction with the various entities involved in the initiative - the centre is due to open in the first half of 2010.

Furthermore, with regard to actions designed to enhance the protection of the interests of users, in 2009, a study was concluded on the internal procedures of providers of electronic communications services for the handling of end-user complaints; ICP-ANACOM’s decision on the adoption of measures in this regard is due in 2010.

Finally, note should be made of the decision taken in the context of the 20-year celebrations of this Authority to launch a revamp of ICP-ANACOM’s image (re-branding), seeking a seamless evolution by updating the logo and instilling a new dynamic which signals a new cycle of modernity associated with the current challenges in the communications sector. The slogan of ICP-ANACOM’s brand is maintained “Free Flowing Communication” affirming this Authority’s role as guarantor and promoter of transparent and effective communication.

The new image was presented, at first hand, to ICP-ANACOM’s staff at the celebratory dinner of its twentieth anniversary, held on 6 November 2009. It was released publicly in January 2010. Meanwhile, since September 2009 the media used by this Authority for its communications have included a commemorative stamp of its 20 years.

Internal management

In the financial year referred to in this Annual Report (2009), income was reported as totaling 77.9 million euros, while total costs was reported at 64.9 million euros, providing a net result of around 13 million euros. Investments were undertaken to the amount of 2.6 million euros, representing a reduction of 32 % over the previous year.

Costs incurred in 2009 increased by 22.6 % compared to 2008, mainly due to the allocation of sponsorship worth 10 million euros to FCM, the hosting of WTPF-09 (costing 2,661 million euros) and the contribution to the European Space Agency (ESA), amounting to 3,037 million euros (increasing from one million euros in 2008). If these costs were not considered, there would have been a nominal reduction in costs, over 2008, of 5.9 % (1.8 % if the lower level of provisions in 2009, compared to 2008, is excluded from consideration).

In terms of personnel costs, there was a decrease of 1.3 % in nominal terms compared to 2008.

Regarding participation in the financing of special social projects and projects of the information society, the value of such participation amounted to 3 million euros, corresponding to an increase in nominal terms of 2,039,071 euros over the previous year. It should be noted that such projects are the result of previous commitments assumed by ICP-ANACOM, following governmental decision.

Given their importance to the reading of this report and their relevance, the following situations are noted: transfers were made to the FCM and the ERC, for the amounts of 20,000,000 euros and 1,000,000 euros, respectively, pursuant to Administrative Rule no. 423/2009 of 22 April; and a further transfer was made to AdC of the sum of 4,425,648 euros (Administrative Rule no. 600/2009 of 16 June, pursuant to Decree-Law no. 30/2004 of 6 February).

Due to its relevance, particular attention should be given to the new fee model, implemented in accordance with Administrative Rule no. 1473-B/2008 of 17 December, and entering into force on 1 January 2009. The application of this regime is covered by a number of implementation measures established by this Authority in two determinations adopted for this purpose: the first on 2 October and the second on 27 November 2009.

This new model introduced the fees due to ICP-ANACOM under article 105, paragraph 1, of the Law of Electronic Communications (Law no. 5/2004 of 10 February): fees associated with the exercise of the activity of electronic communications networks and services provider, under the terms of point b); the fee due for declarations supporting rights issued by ICP-ANACOM, under the terms of point a); fees due for the assignment of rights of use of frequencies and for the its use, under the terms of points c) and f); fees associated with the use of numbers and the reservation thereof, as well as their respective use, under the terms of points d) and e).

To allow a gradual transition from the previous values to the new fees and to facilitate the adjustment of business costs, a transition period of two years was been provided (with the exception of fees due from operators of radio and television broadcasting, for which the transition period is five years) for the implementation of the new model, during which period it shall coexist with the previous model.

With regard to the fees due for use of radio spectrum, the new model will be based on the spectrum assigned, regardless of the operator’s customer base, responding to the need to ensure effective and efficient use of frequencies, with consequent optimization of use of spectrum. The impact of the new fee model was particularly relevant in the case of the public land mobile telephone service (where, under the previous system, the calculation of fees was based on the number of SIM cards); its application in this case led to a 14 % reduction in nominal terms in the value charged compared to 2008, even while this reduction is covered by the first year of the transition period, whereby the previous model continued to be partially applicable.

With respect to the model of fees due for the exercise of the activity of electronic communications networks and services provider, it is noted that its determination is based on orientation to the cost of the activities of regulation - through the use of a three-year moving average; except for costs arising as a result of provisions made for outstanding legal proceedings, where a five-year moving average is used. These costs are distributed among providers of electronic communications networks and services in proportion to relevant income related to their activity, for the year preceding that in which the fee is due for settlement. Exceptions are provided for operators whose relevant income does not exceed 100,000 euros, in which cases a zero fee is applied, and those whose relevant income does not exceed 1,500,000 euros, from which a fixed fee of 2,500 euros is due.

In this context, note should also be made of the adoption by this Authority, on 1 July 2009, following conclusion of the applicable consultation procedure, of the Regulation on the settlement and collection of fees due to ICP-ANACOM (Regulation no. 300/2009, published on 15 July), which, in addition to simplifying all the procedures involved, has provided operators with information on the general applicable regime and the substantive rules governing each fee.

Finally, it should be noted that, pursuant to paragraph 5 of article 105 of Law no. 5/2004 of 10 February, ICP-ANACOM shall publish an annual report of its administrative costs and of the total sum resulting from the collection of charges referred to in points a) to d) of paragraph 1, in order to perform the appropriate adjustments in respect of the difference (where applicable) between the total sum of the charges and the administrative costs.

During this period, ICP-ANACOM continued its effort to increase provision made with respect to ongoing legal proceedings, increasing this provision by 337 thousand euros to an accumulated value of 49.3 million euros. This provision is intended to cover the costs of any compensation that may be due as a result of legal proceedings brought against ICP-ANACOM by providers of electronic communications services, mostly in the context of decisions taken as sectorial regulatory authority.

Regarding the management of people, particular note is due, in 2009, to the implementation of a new methodology in the context of positioning in careers, as well as greater flexibility in this Authority’s system of professional development.

In an organizational context which is focused on the quality of performance in the accomplishment of strategic objectives, the current system of progress by merit drives the development and enrichment of skills, creating a basis which is key for the continuity of a reference service and for the motivation of its staff.

Note should also be made of the strong focus, in line with this new approach, on internal mobility initiatives undertaken in 2009, aiming at the promotion of new professional opportunities and the consequent sharing of internal knowledge, supported at the same time by significant investment in professional training in areas of technical expertise and managerial competence. The objective of adopting such measures is to give the organization greater capacity to respond and adapt to change, which capacity is crucial in the sector where ICP-ANACOM operates.

The priority given in 2009 to internal mobility and staff rotation has resulted in a reduction in external recruitment, with only one admission reported of a senior staff member. The staff structure from 2008 was maintained, with temporary contracts used only for exceptional activities.

Conclusion

The activities briefly described in this note do not in any way comprise the entirety of the activity undertaken by this Authority during 2009. The note is only to illustrate and highlight the main issues underlying this activity, in the light of the strategic goals outlined, whereas a detailed characterization of the projects undertaken and of results achieved is provided in the Activities Report and in the Regulation Report.

As already noted, on 6 November 2009, this Authority marked its twentieth anniversary. On this day, the current Chairman of the Management Board issued an internal message, which deserves to be generally known. This transcript of this message follows below:

Dear staff of ICP-ANACOM

Today ICP-ANACOM formally completes 20 years of existence.

To all those who, throughout these 20 years, have shared in the challenges, successes and failures, joys and frustrations, who, in a word, have lived ICP-ANACOM, I give you a message of encouragement and appreciation which also casts a view to the past.

We look to the past, recalling with appreciation all those who have left and whose memory we show respect.

Appreciation for all who still work here and those who still see ICP-ANACOM as their own organization, for everything that has been accomplished.

Encouragement to all those who today continue to work for ICP-ANACOM. The past can only be properly remembered and celebrated knowing that we are ready to face a future that is always full of surprises and change.

It is this challenge to change that, here and now, I want to make to everyone along with a vote of appreciation for the work and some sincere congratulations.

Let me, however, be allowed a special word for all those who, more than anyone, deserve this celebration - those who have been here from the beginning. For you, I offer you heart-felt gratitude, but gratitude that I want to condition with a request, which is also an encouragement: do not let the past be a burden, but a springboard for a continuously renewed future.

The constant challenge of this message is lasting and includes the broad gratitude and appreciation that is usually expressed annually in this note for all those who have made a contribution to the development of this sector, of which ICP-ANACOM is only a small, and perhaps the most insignificant, part. The expression of gratitude, which is recognition, therefore includes our Advisory Council and our Audit Committee, and all who work with us.

A final word of thanks, that merits special attention, goes to the former member of our Management Board, Maria Teresa Rodrigues Xavier Pintado Maury, who with constant and full commitment, contributed to the accomplishments of this Authority during much of the year covered by this Annual Report.

The Management Board

José Amado da Silva

Alberto Souto de Miranda

José Ferrari Careto

Eduardo Cardadeiro

Filipe da Boa Baptista