The widespread use of bundles of telecommunications services among families means that the penetration rate of bundles in Portugal, especially triple-play bundles, is above the average of EU27 countries - 49% versus 45% in the EU27. In March 2013, double-play bundles consisting of telephone and Internet was most common in the EU27, with a penetration rate of 14%, followed by triple-play bundles (fixed telephone, Internet and television), with a penetration rate of 12%. In Portugal, triple-play was the leading bundle of services at the time with a penetration rate of 29%, followed by double-play comprising fixed telephone and television, with a penetration rate of 10%.
According to a study conducted by ANACOM - Autoridade Nacional de Comunicações, about 60% of households have a bundle of services that includes two or more services. The most commonly contracted bundles are triple-play bundles (73% of total contracted bundles), followed by double-play bundles consisting of fixed telephone and subscription television (18%) and double-play with fixed telephone and fixed Internet (6%).
The overwhelming majority of respondents valued the acquisition of services in bundles over separate acquisition due to advantages such as a single bill, a reduction in price and the simplicity offered by bundles. Meanwhile, the level of discounts associated with bundles of services seems to have been increasing over time.
The study also notes a decline in the average pricing of bundles between 2009 and 2012. This price decrease may be due to the increased diversity of bundles, increased competition and increased duration of customer lock-in periods (from one year to two years, in the case of triple-play bundles, which may allow providers to spread installation costs over a longer period of time).
The fixed telephone service was the least valued bundled service, with about 13% of respondents stating that they would discontinue the fixed telephone service if they had to acquire it separately; this may suggest that some respondents may be purchasing services which they do not really need and may also reflect the offers on the market - currently the overwhelming majority of bundled offers include this service (in some cases with free calls to the fixed network).
Approximately 8% of survey respondents said they had switched their provider in the last 12 months and 17% claimed to have considered switching provider but did not. Among those who considered switching, a high proportion reported not having switched because the provider reduced the price of their offer (in most cases, without altering the characteristics of the contracted services).
Switching operators is often hampered by the fact that consumers are unaware of the existence of lock-in periods and other characteristics of the offer. This is all the more relevant since it is the most recently concluded contracts that entail longer lock-in periods.
Consult:
- Characterization of take-up and consumption of bundles of electronic communications services https://www.anacom.pt/render.jsp?contentId=1174393
