Universal service of electronic communications - the concept of excessive burden and the calculation of net costs

By determination of 9 June 2011, ANACOM has approved the final decisions on the definition of excessive burden and on the methodology to be used for calculating the net costs of providing the universal service (US) of electronic communications.

Following analysis of the comments of interested parties, ANACOM saw fit to amend the following aspects of its draft decision, as approved on 27 January 2011:

  • Uniformity, in the decision on excessive burden, of the criterion of its definition in the periods prior to and following the tender procedure for the designation of the USP;

  • Establishment of a 90 day deadline for sending information for the preliminary calculation of the CLSU - custos líquidos do serviço universal (net costs of the universal service), extendable to 180 days in duly reasoned cases.

  • Establishment of the threshold from which CLSU funding is justified at 2.5 million euros;

  • Limit on the number of iterations performed when applying the costing methodology in determining non-profitable areas and non-profitable customers in profitable areas, which will conclude whenever the number of MDF comprised by non-profitable areas or the number of non-profitable customers in profitable areas obtained in iteration n does not result in a variation of more than 3 percent compared to iteration n  -1, with the number of  iterations limited to 5 in all cases;

  • Acceptance that use may be made of alternative forms to those presented by ANACOM with respect to the costs and revenue components to be used in applying the methodology for calculating the CLSU, including the use of functions to breakdown costs between different areas and customers, provided the ultimate aim of the exercise, ensuring adherence to reality, is not jeopardised;

  • Performance of a study to estimate the demand-price elasticity effect for "Retiree and Pensioner" customers, substituting the value indicated in the draft decision with the value which will be obtained in this study;

  • Acceptance that the indirect benefit in respect of the life cycle should not taken into account for purposes of evaluating the CLSU;

Acceptance, with regard to non-profitable areas and non-profitable customers in profitable areas that the non-consideration of revenues derived from the provision of the US when calculating the fees payable in respect of the exercise of the activity of supplier of electronic communications networks and services will not constitute an indirect benefit, with limitation to the case of "Retirees and Pensioners".