Trends in telecommunications prices - November 2020

Executive summary

• In November 2020, telecommunications prices, measured by the sub-index of the Consumer Price Index (CPI), increased by 0.12% compared to the previous month. This change was due to the price increase of the triple-play bundles.
• Compared to the same month of the previous year, the observed variation in prices was -1.03%. 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 -2.43%, i.e., 2.47 percentage points (p.p.) below that recorded by the CPI (0.04%). 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 November 2020, the average variation rate of telecommunications prices in Portugal was lower than that observed in the EU (-2.6 p.p.). The average variation rate of telecommunications prices of the last twelve months in Portugal was the 4th lowest (24th highest) among EU countries. The country that recorded the highest increase of prices was Poland (+4.1%) while the strongest reduction occurred in Ireland (-3.9%). On average, telecommunications prices in the EU Increased by 0.1%.
• Between the end of 2009 and November 2020, telecommunications prices in Portugal increased by 6.7%, while in the EU they fell by 10.6%. The difference narrowed following the entry into force on 15 May 2019 of the new European rules regulating the prices of intra-EU communications.
• A finer comparative analysis of some countries reveals that a divergent price trend was installed from 2011-2012 onwards. In particular, telecommunications prices in Portugal increased by 6.7%, while in Spain, Italy and France they fell by 9.4%, 16.9% and 24%, respectively, between the end of 2009 and November 2020.
• According to Eurostat, communications were 21.4% more expensive in Portugal in 2019 than the average of the 27 Member States.
• Minimum monthly charges are offered by NOWO in seven cases of services/offers, while NOS and NOS showed the lowest monthly charges for three types of services/offers and Vodafone for one type of service/offer. 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, the following price variations stand out in particular: the minimum monthly charge of the most common quintuple play (5P) bundles fell by 0.3%, due to promotions at the end of November, related to “Black Friday” by MEO, NOS and Vodafone; the minimum monthly charge of the most common quadruple play (4P) bundles fell by 0.4%, also due to alterations of the NOWO offers; the minimum monthly charge of the mobile telephone 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 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.
• In addition to this, MEO decreased its minimum monthly charge of four services/offers in relation to the same month of the previous year, and increased the monthly charge in another four services/offers, while NOS reduced the minimum monthly charges of three services/offers and increased the minimum monthly charges of five services/offers, and Vodafone increased the monthly charges in six services/offers. Some of these variations were related to “Black Friday” promotions. Particular note should be made of the increased monthly charge of the triple play offer of MEO, NOS and Vodafone¹.