Trends in telecommunications prices - October 2020

Executive summary

• In October 2020, telecommunications prices, measured by the sub-index of the Consumer Price Index (CPI), remained unchanged from the previous month.
• Compared to the same month of the previous year, the observed variation in prices was -1.14%. The year-on-year variation of telecommunications prices has been lower than the growth of the CPI since November 2017.
• The average variation rate of telecommunications prices of the last twelve months was -2.68%, i.e. 2.77 percentage points (p.p.) below that recorded by the CPI (0.09%). This price reduction primarily reflects the entry into force on 15 May 2019 of the new European rules regulating the prices of intra-European Union (EU) communications
• In October 2020, the average variation rate of telecommunications prices in Portugal was lower than that observed in the EU (-2.9 p.p.). The average variation rate of telecommunications prices of the last twelve months in Portugal was the 25th highest among EU countries. The country that recorded the highest increase of prices was Poland (+3.9%) while the largest reduction occurred Czech Republic (-4%). On average, telecommunications prices in the EU Increased by 0.2%.
• Between the end of 2009 and October 2020, telecommunications prices in Portugal increased by 6.5%, while in the EU 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.
• Minimum monthly charges are offered by NOWO in seven cases of services/offers, while MEO, NOS and Vodafone showed the lowest 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).
• Compared to the same month of the previous year, we highlight the following price variations: the minimum monthly charge of individualised fixed broadband (BLF) 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 broadband service with internet on the 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 introduction of the free offer of the first monthly charge; and the minimum monthly charge of the most common quadruple play (4P) bundles fell by 0.4%, also due to alterations of the NOWO offers.
• MEO decreased its minimum monthly charge of one service/offer in relation to the same month of the previous year in three services/offers, while NOS increased the monthly charges of seven services/offers. We highlight, in particular, the increase of the monthly charge of the MEO and NOS triple play bundles by 3.3%¹.