Prices in Portugal compare unfavourably with the EU - between the end 2009 and October 2020


According to Eurostat data, between the end of 2009 and October 2020, telecommunications prices increased by 6.5% in Portugal, while in the European Union they fell by 11%. The difference narrowed following the entry into force on 15 May 2019 of the new European rules regulating the prices of intra-EU communications.

Figure 1 – Evolution of the HICP of telecommunications in the EU between December 2009 and October 2020

Figure 1 - Evolution of the HICP of telecommunications in the EU between December 2009 and October 2020

Unit: %
Source: ANACOM, based on Eurostat data
Note: Information not available for the United Kingdom, Ireland, Malta, Sweden and Estonia.

The differences between the evolution of the telecommunications prices in Portugal and in the EU was primarily due to the “price adjustments” implemented by the providers during various years, particularly in the first months of each year.

Figure 2 – Evolution of telecommunications prices in Portugal and in the EU (2009M12 = Base 100)

Figure 2 - Evolution of telecommunications prices in Portugal and in the EU (2009M12 = Base 100)

Unit: index (2009M12 = Base 100)
Source: ANACOM, based on Eurostat data
Note: EU telecommunications prices from December 2016 differ from those published previously due to changes made by Eurostat. The information up to November 2016 was gathered on 16 March 2018. The information from December 2016 onwards was gathered on 20 November 2020.

Portugal continues to show high retail prices of electronic communications offers in comparison to other countries of the European Union.

Over the years, various independent international organisations independent have made international comparisons of telecommunications prices for the residential segment. The results of the most recent price comparison studies promoted by the European Commission are presented in the following graphs (PLEASE NOTE: the lower the value of the index, the higher the prices):

  • The prices of electronic communications in Portugal were ranked, overall, in fifth position among the highest prices of the EU, in front of Spain, Greece, Ireland and Cyprus (3).

Figure 3 – Broadband Price Index 2020

Figure 3 - Broadband Price Index 2020

Source: EC, DESI 2020
Note: 0 to 100, with 100 being the best score.

  • The prices of convergence offers (e.g. 4P/5P bundles) were also ranked in fifth position among the highest prices of the EU (4).

Figure 4 – Broadband Price Index 2020 – convergence offers (fixed and mobile service bundles)

Figure 4 - Broadband Price Index 2020 -convergence offers (fixed and mobile service bundles)

Source: EC, DESI 2020
Note: 0 to 100, with 100 being the best score.

  • The prices of individualised mobile services (voice and internet), were the fifth most expensive of the EU (5).

Figure 5 – Broadband Price Index 2020 – mobile services (voice and data)

Figure 5 - Broadband Price Index 2020 - mobile services (voice and data)

Source: EC, DESI 2020
Note: 0 to 100, with 100 being the best score.

  • The prices of broadband-only offers were ranked in seventh position among the highest prices of the EU.

On the other hand, according to the report on the «Trends in telecommunications prices» of October 2020, disclosed today by ANACOM, among the services/offers considered, the lowest monthly charges are offered by NOWO in seven cases of services/offers, while MEO, NOS and Vodafone show lower monthly charges for two types of services/offers.

It should be noted that the individualised internet access service offer of NOWO is the one with the lowest monthly charge (20 euros). This monthly offer is at least 20% cheaper than that of all the other providers.

Compared to the same month of the previous year, the following prices variations are noteworthy (Table 1):

  • The minimum monthly charge of the individualised fixed broadband (BLF) service increased by 4.3%, due to the end of the free offer of the first monthly charge of the basic service provided by NOWO;
  • The minimum monthly charge of the mobile telephone service with internet on mobile phone fell by 36.1%, due to the reduction of the monthly charge of the NOWO offer from 7.5 euros to 5 euros and the introduction of the free offer of the first monthly charge;
  • The minimum monthly charge of the most common quadruple play (4P) bundles fell by 0.4%, due to the alteration of the NOWO offer.
Table 1 - Year-on-year variation rate of the minimum monthly charge by type of offer - October 2020

Total

MEO

NOS

NOWO

Vodafone

TVS

0.0

0.0

0.0

0.0

0.0

BLF

4.3

-7.4

7.2

4.3

0.0

STF

0.0

0.0

1.0

0.0

0.0

STM

0.0

0.0

0.0

-36.1

0.0

STM with internet on mobile phone

-36.1

0.0

0.0

-36.1

0.0

BLM PC/Tablet

0.0

0.0

0.0

-

0.0

BLF+TVS

0.0

3.3

3.3

0.0

0.0

BLF+STF

0.0

0.0

14.7

0.0

0.0

TVS+STF

0.0

1.6

0.0

0.0

0.0

BLF+TVS+STF

0.0

3.3

3.3

0.0

0.0

BLF+TVS+STF+STM

-0.4

0.0

4.0

-0.4

0.0

BLF+TVS+STF+STM

with internet on mobile phone

-0.4

0.0

4.0

-0.4

0.0

BLF+TV+STF+STM

with internet on mobile phone

 +BLM PC/Tablet

0.0

0.0

0.0

-

0.0

Unit: %
Source: ANACOM
Note: TVS – Subscription TV signal distribution service; BLF – Fixed broadband; STF – Fixed telephone service; STM – Mobile telephone service; BLM - Mobile broadband supported by PC/tablet.


In addition to the above, we highlight, in particular, the increase of the monthly charge of the MEO and NOS triple play bundle by 3.3%1.

Vodafone increased its prices in a similar manner. This increase shall be recorded in November.

Notes
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1 See: MEO, NOS e Vodafone sobem mensalidades das ofertas 3P em 3,3% e reduzem qualidadehttps://www.anacom.pt/render.jsp?contentId=1575644.

Consult the statistical report: