Trends in telecommunications prices - June 2021

Executive summary

Prices decreased by 0.1% in June 2021

In June 2021, telecommunications prices, as measured through the sub-index of the Consumer Price Index (CPI), decreased by 0.1% from the previous month due to changes in some bundled offers.

Compared with the same month of the previous year, prices increased by 0.3%. The year-on-year change in telecommunication prices has been lower than the growth of the CPI since November 2017. The average rate of change in telecommunications prices over the last twelve months was -0.7%, 1.0 percentage point (p.p.) lower than that recorded by the CPI (0.3%). This price reduction reflects the lower monthly fees of some post-paid mobile broadband offers via PC/tablet and some bundled offers.

Average change over the last 12 months in Portugal was 0.6 p.p. lower than in the EU

In June 2021, the average rate of change in telecommunications prices in Portugal was lower than in the European Union (-0.6 p.p.). The average rate of change in the past 12 months in telecommunications prices in Portugal was the 12th lowest (16th highest) among the EU countries. The country where the biggest price increase occurred was Poland (+5.8%) while the biggest decrease was in Luxembourg (-3.8%). On average, telecommunications prices in the EU decreased by 0.2%.

Prices have increased by 10.0% since the end of 2010

In a long-term perspective and in cumulative terms, telecom prices grew 10.0% since the end of 2010 while the CPI grew 10.9%. The divergence between the evolution of the two indices began in 2015 and became more pronounced in 2016; it is associated with the "price adjustments" made by the main providers. As of May 2019, the decrease in the divergence between the two indices was mainly due to the entry into force of Regulation (EU) 2018/1971 of the European Parliament and of the Council which imposed a maximum price for international intra-EU calls and SMS.

If the price of intra-EU calls had not been reduced, it is estimated that telecommunications prices would have grown by 13.7% since the end of 2010, which is, in cumulative terms, 2.8 p.p. above the CPI variation in this period.

Since the end of 2009, prices in Portugal increased by 8.1% while in the EU they decreased by 9.7%

Between the end of 2009 and June 2021, telecommunications prices in Portugal increased by 8.1%, while in the EU they decreased by 9.7%. The gap narrowed with the entry into force on 15 May 2019 of the new European rules regulating intra-EU communications prices.

A more fine-grained comparative analysis shows that between the end of 2009 and June 2021 telecommunication prices decreased by 11.9 in Croatia, while in Slovenia and Portugal they increased by 7.7% and 8.1% respectively.

NOWO presents the lowest monthly fee for seven services/offers

NOWO offers the lowest monthly fees in seven cases out of a range of 13 services/offers, while MEO, Vodafone and NOS have the lowest monthly fees for four, two and one type of services/offers, respectively.

Compared to the same month last year, there were 30 changes in the minimum monthly fees for services/offers, of which 28 were price increases and two were decreases.

The following price variations stand out: the minimum monthly fees of STV and STV+FTS increased by 30.8% and 77.6% as a result of the end of the marketing of an offer by NOS; the minimum monthly fee of the 4P offers increased by 8.3% as a result of the elimination of NOWO's mobile phone service option with a five euro monthly fee; the minimum monthly fee of mobile broadband via PC/Tablet increased by 4.3%, following the elimination of MEO's first monthly fee base service offer; the minimum monthly fee for mobile phone service with internet increased 4.3% following the elimination of NOWO's offer of a five euro monthly fee; and the minimum monthly fee for individualised fixed broadband (FBB) increased 4.3% due to the end of NOWO's first monthly fee offer.

Per provider, MEO decreased the minimum monthly fee of one service/offer as compared to the same month of the previous year and increased the monthly fee in eight services/offers. The MEO service whose monthly fee decreased significantly was the offer of mobile phone service with Internet on the mobile phone (UZO offer). NOS increased the minimum monthly fees of eight services/offers and decreased the monthly fee for one offer (mobile phone service with Internet on the mobile phone - WOO offer). Vodafone increased the minimum monthly fees of seven services/offers. Particularly noteworthy was the increase in the monthly fees of the triple play offer by MEO, NOS and Vodafone that occurred in October and November 2020¹ and of quadruple and quintuple play offers by MEO, NOS and Vodafone in May and June 2021.