The tariff for 2000, proposed by Portugal Telecom, has been approved by the Instituto de Comunicações de Portugal and by the Directorate-General of Trade and Competition (DGCC).
During the process, the consumer associations were heard. The tariff was also disclosed to the governments of the Autonomous Regions of the Azores and Madeira.
The tariff for 2000 represents an 8% cut in real terms over the 1999 tariff as far as the fixed telephone service basket is concerned. The installation charge for a telephone line is maintained while the monthly subscription is increased by 140.
The price of local calls is increased 2% in nominal terms, in line with the inflation projected for 2000.
The price of regional calls is cut by 1.9% in nominal terms, equal to a 3.9% reduction in real terms.
The price of long-distance calls is cut by 34.8% in nominal terms.
The price of international traffic is reduced by 15% in nominal terms.
The tariff for 2000 also introduces per second billing following a fixed initial period of 60 seconds for local calls, 15 20 seconds for regional calls, 10 seconds for long-distance national calls and 5 seconds for international calls.
In the wake of this process, ICP is to recommend that the operator carry out a study, based on the actual billing, of the price variations arising from this new tariff.
Portugal Telecom is the concessionaire of the universal telecommunications service.