Trends in telecommunications prices - March 2022

Executive Summary

Prices did not change in March 2022

In March 2022, telecom prices, as measured through the respective sub-index of the Consumer Price Index (CPI), remained unchanged from the previous month.

Compared with the same month last year, prices increased  by 1.9%, which was 3.5 percentage points (p.p.) lower than the CPI¹ growth.

The average rate of change of telecommunication prices in the last twelve months was 1.1%, 1.1 percentage points (p.p.) lower than that recorded by the CPI (2.2%).

Average change over the last 12 months in Portugal was 0.5 p.p. higher than the EU

In March 2022, the average rate of change in telecommunications prices in Portugal was higher than in the European Union (+0.5 p.p.). The average rate of change over the last twelve months in telecommunications prices in Portugal was the 10^th highest (18^th lowest) among EU countries. The country with the highest price increase was Slovakia (+5.6%) while the highest decrease was Bulgaria (-5.0%). On average, telecoms prices in the EU increased by 0.6%.

Prices have increased by 10.9% since the end of 2010

From a long-term perspective and in cumulative terms, telecom prices grew  by 10.9% since the end of 2010 while the CPI grew by 15.8%. Between 2015 and 2019, the cumulative change in telecom prices was higher than the cumulative change in the CPI due to the “price adjustments” made by the main providers. From May 2019, the decrease in the divergence between the two indexes was mainly due to the entry into force of Regulation (EU) 2018/1971 of the European Parliament and of the Council which imposed a price cap on international intra-EU calls and SMS.

Had the price reduction of intra-EU calls not occurred, it is estimated that telecommunications prices would have grown by 14.6% since the end of 2010, being, in cumulative terms 1.3 p.p. below the CPI change in this period.

Since the end of 2009, prices have increased by 8.9% in Portugal and decreased by 9.6% in the EU

Between the end of 2009 and March 2022, telecoms prices in Portugal increased by 8.9%, while in the EU they decreased by 9.6%. The gap narrowed with the entry into force on 15 May 2019 of the new European rules regulating intra-EU communications prices.

A more detailed comparative analysis shows that between the end of 2009 and March 2022, telecoms prices decreased by 25.8% in the Netherlands and 1.1% in Austria, while in Hungary and Portugal they increased by 1.3% and 8.9% respectively.

NOWO presents the lowest monthly charge for eight offers

The lowest monthly charges are offered by NOWO in eight cases from a range of 13 services/offers, while MEO and NOS presented the lowest monthly charges for two types of service/offer each. Vodafone presented the lowest monthly charge for one type of service/offer.

On a year-on-year basis, there were 17 price increases and 4 price decreases. The following price changes stand out:

• The minimum monthly charge for PTV increased by 3.4% due to the end of NOS’ offer of the first monthly charge;
• The minimum monthly charge for FBB fell by 4.2%, due to the offer of the first monthly charge of NOWO’s basic service;
• The minimum monthly charge of the Mobile Telephone Service with Internet increased by 50.0%, due to discontinuation of the offers from NOWO and MEO (Uzo offer) with a monthly charge of EUR 5.00;
• The minimum monthly charge for Mobile Broadband via PC/Tablet increased by 4.3%, as MEO discontinued its offer of a free first monthly charge of the basic service;
• The minimum monthly charges for FBB+PTV (+11.1%), PTV+FTS and 3P (+0.4%) offers increased following discontinuation of NOWO’s TV option at EUR 2.50/month;
• The minimum monthly charge for 4P offers increased by 9.9% due to discontinuation of NOWO’s mobile telephone service option with a monthly charge of EUR 5.00, and 1.0% due to discontinuation of NOWO’s TV option at EUR 2.50/month, making a total of 11.0%;
• The minimum monthly charge for 5P offers increased by 0.2%, as Vodafone discontinued its offer of a free first monthly charge of the basic service.

According to provider, MEO increased the monthly charge for five services/offers and reduced the monthly charge for two offers (discount of EUR 5.00 for 12 months for 4P offers supported over ADSL or satellite network). NOS increased the minimum monthly charges for one service/offer. Vodafone increased the minimum monthly charges for three services/offers and reduced the monthly charge for one offer (the mobile broadband Internet offer via PC/tablet). In turn, NOWO increased the minimum monthly charges for eight services/offers and reduced the monthly charge for one service/offer (offer of the first monthly charge for the single-play fixed broadband basic service).

There were notable increases in the monthly charges for 4P and 5P offers by MEO, NOS and Vodafone in May and June 2021².

NOWO presents the lowest monthly charge for eight offers

The lowest monthly charges are offered by NOWO in eight cases from a range of 13 services/offers, while MEO and NOS presented the lowest monthly charges for two types of service/offer each. Vodafone presented the lowest monthly charge for one type of service/offer.

On a year-on-year basis, there were 17 price increases and 4 price decreases. The following price changes stand out:

• The minimum monthly charge for PTV increased by 3.4% due to the end of NOS’ offer of the first monthly charge;
• The minimum monthly charge for FBB fell by 4.2%, due to the offer of the first monthly charge of NOWO’s basic service;
• The minimum monthly charge of the Mobile Telephone Service with Internet increased by 50.0%, due to discontinuation of the offers from NOWO and MEO (Uzo offer) with a monthly charge of EUR 5.00;
• The minimum monthly charge for Mobile Broadband via PC/Tablet increased by 4.3%, as MEO discontinued its offer of a free first monthly charge of the basic service;
• The minimum monthly charges for FBB+PTV (+11.1%), PTV+FTS and 3P (+0.4%) offers increased following discontinuation of NOWO’s TV option at EUR 2.50/month;
• The minimum monthly charge for 4P offers increased by 9.9% due to discontinuation of NOWO’s mobile telephone service option with a monthly charge of EUR 5.00, and 1.0% due to discontinuation of NOWO’s TV option at EUR 2.50/month, making a total of 11.0%;
• The minimum monthly charge for 5P offers increased by 0.2%, as Vodafone discontinued its offer of a free first monthly charge of the basic service.

According to provider, MEO increased the monthly charge for five services/offers and reduced the monthly charge for two offers (discount of EUR 5.00 for 12 months for 4P offers supported over ADSL or satellite network). NOS increased the minimum monthly charges for one service/offer. Vodafone increased the minimum monthly charges for three services/offers and reduced the monthly charge for one offer (the mobile broadband Internet offer via PC/tablet). In turn, NOWO increased the minimum monthly charges for eight services/offers and reduced the monthly charge for one service/offer (offer of the first monthly charge for the single-play fixed broadband basic service).

There were notable increases in the monthly charges for 4P and 5P offers by MEO, NOS and Vodafone in May and June 2021³.

Comparisons of ITU international prices

ITU publishes the ICT Price Basket every year to measure the cost and accessibility of four mobile service usage profiles and one fixed broadband usage profile.

In terms of percentage of the average monthly gross national income per capita (GNI p.c.), in 2021, prices charged in Portugal ranked between 16^th  and 24^th  in EU27, being between 0.02 p.p. below the average and 0.34 p.p. above the EU27 average.