Executive Summary
Telecommunication prices up by 0.2% in January 2023
In January 2023, telecommunication prices, as measured through the respective Consumer Price Index (CPI) group, increased by 0.2% compared to the previous month due to changes in some bundled offers. The update of provider prices in line with inflation is not yet reflected in this report.
Compared with the same month last year, prices decreased by 1.2%. This change in telecommunication prices was 9.5 percentage points (p.p.) lower than that registered by the CPI (8.4%).
The average rate of change of telecommunication prices in the last twelve months was 1.5%, which is 6.8 p.p. below that registered by CPI (8.2%).
On a per sub-group basis, according to Eurostat, the average rates of change over the last twelve months were 3.0% and 0.2% for bundled services and mobile telephone services, respectively. In the case of bundled services, the rate was 0.6 p.p. lower than in 2022.
Average change over the last twelve months in Portugal was 1.4 p.p. higher than in the EU
In January 2023, the average rate of change over the last twelve months in telecommunications prices in Portugal was higher than that of the European Union (+1.4 p.p.). Portugal recorded the 9th highest price change (19th lowest) among EU countries. The country with the highest price increase was Poland (+4.7%) while the highest decrease was recorded in the Netherlands (-4.3%). 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 for prices of bundled services and mobile phone services in Portugal were 1.9 p.p. and 1.2 p.p. above the EU average, respectively.
Telecoms prices up by 9.9% since the end of 2010
In a long-term perspective and in cumulative terms, telecom prices grew by 9.9% since the end of 2010 while the CPI grew by 22.0%. 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 13.6% since the end of 2010, being in cumulative terms 8.4 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 8.0% in Portugal and decreased by 9.1% in the EU
Between the end of 2009 and January 2023, telecoms prices in Portugal increased by 8.0%, while in the EU they decreased by 9.1%. A more detailed comparative analysis shows that between the end of 2009 and January 2023, telecoms prices decreased by 11.4% in Lithuania, increased by 7.8% in Finland and 8.3% in Latvia.
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, nine services/offers showed price increases and eight 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 January 2023, the PTV minimum monthly fee corresponded to a MEO single play offer.
- The minimum monthly fees for 3P, 4P and two 2P offers have decreased due to an increase of the discount value, during the first 6 months, of NOWO’s offer.
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 and Vodafone increased the minimum monthly fee of one service/offer. NOS also decreased the monthly fee of a service/offer (change in the monthly fee of the Plano Poupança Fixo offer). NOWO decreased the monthly fees of six services/offers (increase in the discount, during the first 6 months, of NOWO’s offer).
