The Instituto das Comunicações de Portugal (ICP) has established a maximum price for telephone calls originated in the fixed network destined for a mobile network. The price relates to the interconnection market between operators, i.e. to the "mass" market, and will apply from October 1, 2000.
From this date, it will be the network where the call is originated - in this case the fixed network - that will define the price to be charged to the client for a fixed-mobile connection.
This alteration in the ownership of fixed-mobile traffic aims to avoid strangulation that currently prevails for this type of call. It is believed that this alteration will contribute towards the establishment of a more balanced price structure, thus upholding consumer interests and ensuring that clients do not experience barriers to the use of certain network externalities.
As a result, the maximum price to be charged for the termination of a fixed-mobile call from October 1, 2000 shall be PTE 47.50 per minute, for a 100 second call, with billing per second from the first minute onwards. This calculation is based upon average call duration and pattern of traffic recorded in the first quarter of 2000, considering only traffic that was actually billed, i.e. excluding the first five seconds provided free-of-charge when accessing voice mail services.
The new maximum price corresponds to a reduction of up to 27% in average prices charged by the three operators, calculated at 1999 prices.
This measure will help to avoid possible market distortions resulting from pricing policies and will eradicate penalties suffered by users of fixed networks when making fixed-mobile calls. From October 1, 2000 it will also be possible to make calls to mobile service numbers via indirect access (10xy) to the Fixed Telephone Service.
ICP's intervention results from the decision of December 23, 1999 that established an alteration in fixed-mobile traffic ownership, to enter into force from October 1, 2000. On May 12, 2000, mobile operators and interested parties were given a 30-day deadline to conclude agreements in order to implement this change. After this deadline expired, ICP had not been informed of the prices and terms to be applied, thus warranting its intervention within the scope of its statutory powers.
The current system of fixed-mobile ownership benefits mobile operators. Its historical justification is connected to the need to stimulate the development of mobile services. This justification ceased to make sense recently, once the number of mobile phones in Portugal exceeded the number fixed telephones.
Consult:
- Alteration of the Regime of Ownership of Fixed-Mobile Traffic https://www.anacom.pt/render.jsp?contentId=13666
- Decree-Law no. 415/98, of 31 of December https://www.anacom.pt/render.jsp?contentId=981631
Related information on ANACOM's website:
- Access and Interconnection https://www.anacom.pt/render.jsp?categoryId=4468
