Trends in telecommunications prices - July 2016

Summary

• In July 2016, telecommunications prices in Portugal  decreased by 0.05 percent versus the previous month (versus no change in July 2015). The decline results from changes in two mobile Internet tariffs from one provider. This is the fifth consecutive month to see a nominal and real drop in telecommunications prices over the previous month.
  
  In year-on-year terms, the increase in prices (1.07 percent) was the 18th highest among the sectors of the Portuguese economy.
  
  On average annual terms, prices increased by 3.39 percent, 2.83 percentage points over inflation (0.57 percent). The increase in prices was the 5th highest among the 43 products/services considered.
  
  Since January 2014, telecommunications prices¹ have been increasing at average annual rates above the rate of change reported in CPI.
• On average annual terms, Portugal reported the second highest increase in prices in the EU in July 2016. On average, telecommunications prices in the EU fell by 0.02 percent.
  
  Since March 2011, telecommunications prices have increased more in Portugal than in the EU. However, the difference has been narrowing since February 2016.

1. Trends in telecommunications prices - July 2016

According to INE (Statistics Portugal)², in July 2016, telecommunications prices in Portugal fell by 0.05 percent over the previous month (unchanged in July 2015). The decline results from changes in two mobile broadband tariffs of one provider. This is the fifth consecutive month to see a nominal and real drop in telecommunications prices over the previous month.

Versus July 2015, telecommunications prices increased by 1.07 percent, while increasing by 3.39 percent on average over the last twelve months.

Source: INE (Statistics Portugal)
Unit: %

On a year-on-year basis, the increase in prices (1.07 percent) was the 18th highest among the various sectors of the Portuguese economy. The difference between this increase and the change in CPI was reported at 0.46 percentage points.

On average terms, the annual increase in prices reported (3.39 percent) was the 5th highest among the 43 products/service considered.

Since January 2014, telecommunications prices have been increasing at average annual rates above the rate of change reported in CPI. Since February 2016, the difference between the two rates has been narrowing and in July 2016, the difference was reported at 2.83 percentage points.

Graph 1 - Monthly change in CPI and telecommunications prices

Source: INE (Statistics Portugal)
Unit: %

2. Trends in telecommunications prices in the EU³ July 2016

According to EUROSTAT⁴, in July 2016, the increase in prices in average annual terms reported in Portugal was 3.41 percentage points above the EU average. On average annual terms, Portugal reported the second highest increase in prices in the EU. The country with the largest increase was Slovenia.

In relation to July 2015, the increase in telecommunications prices in Portugal is the 8th largest in the EU. Larger increases were reported in Belgium, Finland, Lithuania, Slovenia, Spain, Luxembourg and France.

Source: EUROSTAT
Unit: %, p.p.
Note: Information for Ireland, Sweden and United Kingdom not available. Malta and Netherlands are not included in the ranking due to a lack of available information before December 2015.
 
Since March 2011, telecommunications prices have risen more in Portugal than in the EU (in terms of average annual change). However, the difference has been narrowing since February 2016.

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

Source: EUROSTAT
Unit: %
Note: From the publication, by EUROSTAT, on 25 February 2016, of data for January 2016, the reference year of the HICP series was changed from 2005 to 2015.
There may be differences in the series due to rounding effects. For more information, see New HICP reference year 2015 = 100 http://ec.europa.eu/eurostat/documents/272892/272971/HICP+reference+year+2015%3D100/.

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. The price analysis presented here should be taken alongside an assessment of the offer characteristics - see information available in the reports ''Bundles of electronic communications services'', ''Telephone service at a fixed location and nomadic VoIP'', ''Mobile services'', ''Internet access service'' and ''Subscription television service'', all available on ANACOM's website.
² See ''Consumer Price Index - July 2016'' (INE - Statistics Portugal, 2016), available at CPI annual rate of change was 0.6% in July - July 2016 https://www.ine.pt/xportal/xmain?xpid=INE&xpgid=ine_destaques&DESTAQUESdest_boui=249872934&DESTAQUESmodo=2&xlang=en.
³ Information for Ireland, Sweden and United Kingdom not available. Information available from December 2015 for Malta and Netherlands.
⁴ See HICP - monthly data (EUROSTAT, 2016), 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.