Executive Summary
Telecommunication prices decreased by 0.5% in November 2022
In November 2022, telecom prices, measured using the respective group of the Consumer Price Index (CPI), decreased by 0.5% compared to the previous month, mainly due to “Black Friday” promotions.
Compared to the same month of the previous year, prices increased by 1.7%, mainly due to price increases implemented by MEO, NOS and Vodafone in April 20221. This growth in telecommunication prices was 8.2 percentage points (p.p.) lower than that recorded by CPI (9.9%).
The average rate of change of telecommunication prices in the last twelve months was 1.9%, i.e. 5.4 p.p. below that recorded by CPI (7.3%).
On a per sub-group basis, according to Eurostat, the average rates of change over the last twelve months were 3.9% and 0.2% for bundled services and mobile telephone services, respectively. In the case of bundled services, the rate was 2.8 p.p. higher than in 2021.
Average change over the last twelve months in Portugal was 1.7 p.p. higher than in the EU
In November 2022, the average rate of change over the last twelve months in telecommunications prices in Portugal was higher than that of the European Union (+1.7 p.p.). Portugal recorded the 7th highest price change (21st lowest) among EU countries. The country with the highest price increase was Poland (+4.6%) while the highest decrease took place in Slovenia (-4.4%). On average, telecoms prices in the EU increased by 0.1%.
On a per sub-group basis, the average rates of change over the last twelve months in the prices of bundled services and mobile telephone services in Portugal stood at 2.7 p.p. and 1.1 p.p. above the EU average, respectively.
Telecoms prices up by 10.9% since the end of 2010
In a long-term perspective and in cumulative terms, telecom prices grew by 10.9% since the end of 2010 while the CPI grew by 23.4%. Between 2015 and 2019, the cumulative change in telecommunication prices was higher than the cumulative change in the CPI due to “price adjustments” made by the main providers. In 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.
Without the price reduction of intra-EU calls, it is estimated that telecommunications prices would have grown by 14.5% since the end of 2010, being 8.9 p.p. below the CPI change in this period.
As of the end of 2021, the CPI began to grow at a faster rate than telecommunication prices.
Since 2009, prices increased by 8.9% in Portugal and decreased by 9.9% in the EU
Between the end of 2009 and November 2022, telecoms prices in Portugal increased by 8.9%, while in the EU they decreased by 9.9%. A more detailed comparative analysis shows that between the end of 2009 and November 2022, telecoms prices in Czechia decreased by 21.7% and in Greece by 2.7%, while in Portugal and Slovakia they increased by 8.9% and 12.6% respectively.
NOWO with the lowest monthly fee for eight offers
The lowest monthly fees are offered by NOWO in eight cases out of a range of 13 services/offers, while MEO and Vodafone presented the lowest monthly fees for four and two types of services/offers respectively.
On a year-on-year basis, 24 services/offers showed price increases and one service/offer showed price decreases. The following price changes stand out:
- The PTV minimum monthly fee increased by 7.6% after NOS ended its single play PTV offers. In November 2022, the PTV minimum monthly fee corresponded to a MEO offer.
- The minimum monthly fees for 2P, 3P and 4P offers increased between 4.5% and 16.7% as NOWO’s “Black Friday” promotions lowered monthly fees in the previous year.
- The minimum monthly fee for the 5P offer increased by 2.5% as Vodafone’s “Black Friday” promotions lowered monthly fees in the previous year.
Compared to the same month last year, and on a provider basis, MEO increased the monthly fee of seven services/offers and decreased the monthly fee of one service/offer (offer of the first monthly fee of the Uzo offer). NOS increased the minimum monthly fee of five services/offers while NOWO increased the minimum monthly fee of eight services/offers compared to the same month last year. Vodafone increased the minimum monthly fee of four services/offers.
1 Vide chapter 2 of the report "Trends in telecommunications prices - April 2022https://www.anacom.pt/render.jsp?contentId=1727294".
