ANACOM - Trends in telecommunications prices

Summary

In September 2015, telecommunications prices in Portugal¹ were unchanged from the previous month.

In year-on-year terms, the increase in prices (5.31 percent) was the 5th highest among the sectors of the Portuguese economy. This price increase resulted from variations occurring in January and February 2015.

On average annual terms, prices increased by 2.84 percent, 2.52 percentage points over inflation (0.32 percent). This increase over CPI is the largest reported since at least 2010. The increase in prices was the 7th highest among the 43 products/services considered.

Telecommunications prices have been increasing at average annual rates above the rate of change reported in CPI since January 2014.
In September 2015, on average annual terms, Portugal was the EU country with the 2nd highest increase in prices. This price increase resulted from variations occurring in January and February 2015.

The country where prices increased more than in Portugal was Poland. On average telecommunications prices are falling in the EU (-0.67 percent).

Since March 2011, telecommunications prices have increased more in Portugal than in the EU.

1. Trends in telecommunications prices - June 2015

According to INE² (Statistics Portugal)in September 2015, there was no change in prices versus the previous month. Compared to the same month of 2014, telecommunications prices rose by 5.31 percent, while increasing by 2.84 percent on average over the past 12 months.

**Table 1 - Change in Consumer Price Index (CPI) and in telecommunications prices**
	September 2015			2014
	Year-on-Year change	Average change 12 months	Change versus prior month	Average change 12 months
CPI	0.88%	-0.32%	-0.79%	-0.28%
Telecommunications	5.31%	2.84%	0.00%	0.59%
Ranking in descending order (43 groups)	5	7	22	16

Source: INE (Statistics Portugal)
Unit: %

On a year-on-year basis, the increase in prices (5.31 percent) was the 5th highest among the sectors of the Portuguese economy. The difference between this increase and the change in CPI was reported at 4.43 percentage points - the largest difference since at least 2010.

On average terms, the annual increase in prices reported (2.84 percent) was the 7th highest among 43 products/service considered.

Since January 2014, telecommunications prices have been increasing at average annual rates above the rate of change reported in CPI. In September 2015, the difference between the two rates was reported at 2.52 percentage points - the widest since at least 2010.

Graph 1 - Monthly change in CPI and telecommunications prices
In September 2015, the difference between the two rates was reported at 2.52 percentage points - the widest since at least 2010.

Source: INE (Statistics Portugal)
Unit: %

2. Trends in EU telecommunications prices September 2015

According to EUROSTAT³, in September 2015, the average annual increase in prices reported in Portugal was 3.50 percentage points above the EU average, so that the price increase in Portugal is the 2nd largest among EU countries.

The country where prices increased more than in Portugal was Poland⁴.

**Table 2 - Change in telecommunications prices: Portugal vs. EU**
	September 2015			2014
	Year-on-Year change	Average change 12 months	Change versus prior month	Average change 12 months
EU	0.17%	-0.67%	-0.05%	-1.94%
Portugal	5.30%	2.84%	0.00%	0.58%
PT / EU difference	5.13 p.p	3.50 p.p	0.05 p.p	2.53 p.p
Ranking in descending order (23 countries)	1	2	6	6

Source: EUROSTAT
Unit: %, p.p.
Note: Information for Ireland, Malta, Netherlands, Sweden and United Kingdom not available.

In year-on-year terms, telecommunications prices in Portugal have increased more than across the EU⁵.

Since March 2011, telecommunications prices have risen more in Portugal than in the EU (in terms of average annual change).

Graph 2 -Average rate of change over previous twelve months - telecommunications prices: Portugal vs. EU

Source: EUROSTAT
Unit: %

Notes

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¹ "Telephone, telegraph and telefax services" sub-index of the Consumer Price Index (CPI) and of the Harmonised Indices of Consumer Prices (HICP), which comprises voice, Internet and subscription TV (STV) services acquired on a stand-alone basis or as part of a bundle of services.
² See "Consumer Price Index" - September 2015” (INE, 2015), available at Taxa de variação homóloga do IPC situou-se em 0,9% - Setembro de 2015

https://www.ine.pt/xportal/xmain?xpid=INE&xpgid=ine_destaques&DESTAQUESdest_boui=224666412&DESTAQUESmodo=2.
³ See HICP - monthly data (EUROSTAT, 2015), available at Eurostat - monthly data (index)

http://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=prc_hicp_midx&lang=en. Methodology described at HICP methodology

http://ec.europa.eu/eurostat/statistics-explained/index.php/HICP_methodology.
⁴ Besides Poland and Portugal, countries reported increases: Austria, Cyprus, Croatia, Estonia, Latvia, Italy, Hungary, and Greece.
⁵ Information for Ireland, Malta, Netherlands, Sweden and United Kingdom not available. Information for Estonia available from 2011.