Trends in telecommunications prices - April 2022

Executive Summary

Prices rose 1.4% in April 2022

In April 2022, telecommunications prices, measured through the respective sub-index of the Consumer Price Index (CPI), increased by 1.4% compared to the previous month due to price changes in some bundled offers.

In comparison with the same month of the previous year, prices rose by 3.3%, 3.9 percentage points (p.p.) less than the growth in the CPI.

The average rate of change of telecommunications prices in the last twelve months was 1.5%, i.e., 1.3 p.p. below that recorded by the CPI (2.8%).

In April, MEO, NOS and Vodafone increased prices of some 3P and 4P offers

The above evolution resulted from the price increases implemented by MEO, NOS and Vodafone in May 2021 and April 2022.¹

In April 2022, MEO, NOS and Vodafone increased the average monthly fees for the first 24 months of some ‘triple play’ offers by between 2.6% and 11.1%. Meanwhile, the average monthly fees for the first 24 months of some ‘quadruple play’ offers increased between 1.8% and 8.2%. Three NOS offers decreased in price (between -3.2% and -5.7%).²

Average change over the last 12 months in Portugal was 0.9 p.p. higher than in the EU

In April 2022, the average rate of change in telecommunications prices in Portugal was higher than in the European Union (+0.9 p.p.). The average rate of change over the last twelve months in telecommunications prices in Portugal was the 9th highest (19th lowest) among the EU countries. The country with the highest price increase was Slovakia (+5.2%) while the highest decrease was Bulgaria (-5.3%). On average, telecoms prices in the EU increased by 0.6%.

Prices have increased by 12.5% since the end of 2010

From a long-term perspective and in cumulative terms, telecoms prices have grown 12.5% since the end of 2010 while the CPI grew 18.4%. Between 2015 and 2019 the cumulative change in telecommunication prices was higher than the cumulative change in the CPI due to the “price adjustments” made by the main providers. From May 2019 the narrowing 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.

Without the price reduction of intra-EU calls, it is estimated that telecommunications prices would have grown 16.2% since the end of 2010, being 2.2 p.p. below the CPI variation in this period.

Since 2009, prices have risen 10.5% in Portugal and fallen 9.5% in the EU

Between the end of 2009 and April 2022, telecoms prices in Portugal increased by 10.5%, while in the EU they decreased by 9.5%. The gap narrowed with the entry into force on 15 May 2019 of the new European rules regulating intra-EU communications prices.

A finer comparative analysis shows that between the end of 2009 and April 2022, telecoms prices decreased by 22.9% in the Czech Republic and 2.2% in Greece, while in Slovakia and Portugal they increased by 10.4% and 10.5% respectively.

NOWO has the lowest monthly fee for eight offers

NOWO offered the lowest monthly fees in eight cases out of a range of 13 services/offers, while MEO and Vodafone presented the lowest monthly fees for two types of service/offer. NOS presented the lowest monthly fees for one type of service/offer.

On a year-on-year basis, there were 23 price increases and 2 price decreases. The following price changes stand out:

• the minimum STV monthly fee increased by 3.4% due to the end of the first monthly fee offer by NOS;
• FBB's minimum monthly fee decreased by 4.2%, due to the offer of the first monthly fee of NOWO's base service;
• the minimum monthly fee of the Mobile Telephone Service with Internet increased 50.0%, due to the elimination of the NOWO and MEO offers (Uzo offer) with a monthly fee of five euros;
• the minimum monthly fee for mobile broadband via PC/Tablet increased by 4.3%, following the elimination of the first monthly fee offer from MEO's base service;
• the minimum monthly fees for the FBB+STV (+11.1%), STV+FTS and 3P (+0.4%) offers increased following the elimination of NOWO's TV option at 2.5 euros/month;
• the minimum monthly fees for the 4P offers increased by 9.9% due to the elimination of NOWO's mobile phone service option with a monthly fee of five euros, and 1.0% due to the elimination of NOWO's TV option at 2.5 euros/month, for a total of 11.0%;
• the minimum monthly fee for the 5P offer increased by 0.2%, following the elimination of the first monthly fee offer from Vodafone's base service.

Per provider, MEO increased the monthly fees of eight services/offers while NOS increased the minimum monthly fees of four services/offers. Vodafone increased the minimum monthly fees of three services/offers and decreased the monthly fee of one offer (mobile broadband internet via PC/tablet offer). In turn, NOWO increased the minimum monthly fees of eight services/offers and decreased the monthly fee of one service/offer (offer of the first monthly fee of the single-play fixed broadband base service).

We particularly highlight the monthly fee increases for MEO, NOS and Vodafone's 4P and 5P offers that occurred in May and June 2021 and for MEO in April 2022.³