Telecommunications prices increased by 6.5% in Portugal and fell by 10.8% in the European Union

Between the end of 2009 and December 2020, telecommunications prices in Portugal increased by 6.5%, while in the European Union they fell by 10.8%. 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).

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 6.5%, while in Spain, Italy and France they fell by 9.4%, 16.9% and 24.3%, respectively, between the end of 2009 and December 2020.

Figure 1 - Variation of the HICP of telecommunications in the EU between December 2009 and December 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 telecommunications prices in Portugal and in the EU (+17.3 p.p. in accumulated terms) were primarily due to the “price adjustments” implemented by the providers, normally in the first months of each year (Figure 2).

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 February 2021.

According to Eurostat, in December 2020 the average variation rate of the last twelve months of the prices of telecommunications services in Portugal was 2.1 p.p. lower than the EU average, with Portugal having been ranked as the 23rd country with highest price increases. The countries in which the highest price increases occurred were Poland (+4.1%), Finland and Romania (+1.8%), while Ireland (-3.6%), the Czech Republic (-3.5%) and Denmark (-2.8%) showed the strongest reductions.

Compared to the same month of the previous year, Portugal was ranked in the 20th position of the countries with highest price increases, among the 27 countries considered (Table 1).

Unit: %, p.p.
Source: Eurostat

Portugal is the 5th country of the EU with highest mobile data prices

If we only consider the prices of mobile data, in 2020, Portugal was the 5th country of the EU27 with the highest average price of 1 GB, 45% above the average, according to the study “Worldwide mobile data pricing 2020” conducted by Cable.co.uk¹. Only Cyprus, Greece, the Czech Republic and Hungary have higher prices than Portugal.

Figure 3 - Monthly average price of 1GB of mobile data in the EU27

Unit: USD
Source: Cable.co.uk

Analysing only the cheapest offers in each country, Portugal was ranked in the 19th position of the EU27, as there were 18 countries with cheaper offers. The price of 1 GB of the cheapest offer in Portugal was approximately 24% higher than the average of the cheapest offers of the EU27 (Figure 4).

Figure 4 - Monthly minimum price of 1GB of mobile data in the EU27

Unit: USD
Source: Cable.co.uk

Consult the statistical report:

• Trends in telecommunications prices - December 2020 https://www.anacom.pt/render.jsp?contentId=1602627