Executive Summary
Telecommunications prices did not change in July 2022
In July 2022, telecommunications prices as measured through the respective sub-index of the Consumer Price Index (CPI) did not change compared to the previous month.
In comparison to the same month of the previous year, the prices increased 1.7%, influenced above all by the rise in prices implemented by MEO, NOS, and Vodafone in April 202211. This rise in telecommunications prices was 7.3 percentage points (p.p.) lower than the CPI inflation rate.
The average increase in telecommunications prices in the last twelve months was 1.8%, which is 2.9 p.p. lower than the CPI (4.7%).
Average increase in the last twelve months in Portugal was 1.3 p.p. higher than in the EU
In July 2022, the average increase over the last twelve months in telecommunications prices in Portugal was higher than that in the European Union (+1.3 p.p.). Portugal registered the 8th highest price rises (20th lowest) among the EU countries. The country where the sharpest rise in prices took place was Poland (+5.0%) while the biggest decrease was in Bulgaria (-4.6%). On average, the telecommunications prices in the EU increased 0.5%.
Telecommunications prices have increased 12.3% since the end of 2010
From a long-term perspective and in accumulated terms, telecommunications prices have grown 12.3% since the end of 2010, and the CPI rate has increased 20.5%. Between 2015 and 2019, the accumulated increase in telecommunications prices was higher than the accumulated variation in the CPI due to the “price adjustments” made by the main providers. In 2019, the reduction in the divergence between the two indices was above all down to the entrance into force of (EU) Regulation no. 2018/1971 of the European Parliament and Council that imposed a maximum price for international calls and SMS messages within the EU.
If the fall in the price of the intra-UE calls had not taken place, it is estimated that the telecommunications prices would have increased 16% since the end of 2010, whereas in accumulated terms they are 4.5 p.p. lower than the CPI in this period.
From the end of 2021, the CPI grew at a higher pace than the telecommunications prices.
Since 2009, prices have increased 10.3% in Portugal and decreased 9.7% in the EU
Between the end of 2009 and July 2022, telecommunications prices in Portugal increased 10.3%, while in the EU they decreased 9.7%. The difference has narrowed with the entrance into force on 15 May 2019 of the new European rules that regulate the prices of intra-EU communications.
A more detailed comparative analysis allows one to state that between the end of 2009 and July 2022, telecommunications prices fell 13.9% in Bulgaria, while in Hungary, Portugal, and Romania they increased 2.1%, 10.3%, and 18.9% respectively.
NOWO with the lowest monthly charge of the eight offers
The lowest monthly charges are offered by NOWO in eight cases of a range of 13 services/offers, while MEO and Vodafone provide the lowest charges for three and two types of service/offers respectively.
Year-on-year, 3 services/offers increased their prices and 4 services/offers decreased them. The following variation of prices stand out:
- The minimum monthly charge of subscription television (TVS) increased 7.6%, due to the discontinuation of the NOS TVS single-play offers.
- The minimum monthly charge for fixed broadband (FBB) fell 4.2% due to the waiver of the first monthly payment of NOWO’s basic service.
- The minimum monthly MTS with Internet increased 43.8%, due to the elimination of the MEO offer (Uzo) with a monthly charge of five euros.
Compared to the same month of the previous year, and per provider, MEO increased its monthly charge for two services/offers and decreased its monthly charge for three services/offers (it increased the monthly charge for the basic 4P bundle supported on ADSL or satellite by two euros, but waived the first monthly payment in 4P and 5P bundles). NOS increased its minimum monthly charge for one service/offer in relation to the same month of the previous year, while NOWO reduced its monthly charge for one service/offer (the first monthly charge for the basic fixed broadband single-play service was waived).
According to the EC, in 2021, broadband prices in Portugal were the fifth most expensive in the EU
According to the European Commission (EC), in 2021, the broadband prices in Portugal were the fifth most expensive in the EU, only behind those charged in Belgium, Croatia, Greece, and Denmark.
Portugal belonged to the “expensive” or “relatively expensive” clusters in all the fixed broadband usage profiles considered (13 usage profiles) and in all the convergent usage profiles (9 usage profiles).
In the case of convergent offers, only Portugal and Cyprus were included in the group, in all the cases considered, of the “expensive” or “relatively expensive” clusters.
The fixed broadband single-play prices in Portugal were between 40% and 49% above the EU average, depending on the download speed considered. The deviations were highest for the highest speeds. Portugal was between the 23rd and 25th place in the EU ranking.
The single-play Internet prices were between 26% and 58% higher than the EU average. The exception was the 0.5 GB usage profile, the price of which was 7% lower than the average. Portugal was between the 16th and 26th positions in the EU ranking.
With regard to the profiles that include mobile voice and Internet on the mobile phone, the prices charged in Portugal were lower than the EU average in the lower consumption profiles, by between 30% and 1%. In all other profiles, with at least 5 GB of mobile data, the prices charged in Portugal were between 3% and 75% higher than the EU average. Portugal was between the 6th and 23rd positions in the EU ranking.
1 See chapter 2 of the report ''Evolution of telecom prices - April 2022https://www.anacom.pt/render.jsp?contentId=1727294''.
