Reference interconnection offer for 2005 - ANACOM cuts down on interconnection prices in 10% and extends off-peak hours


/ Updated on 21.01.2005

ANACOM - National Communications Authority aims at cutting down on interconnection prices in 10% for 2005. This reduction is mainly the result of a combination of two different factors: the fall in interconnection prices as such, particularly as to call set-up, and the extension in two hours of the off-peak period for telephone calls.

The draft decision of ANACOM regarding the prices to be practised in the scope of the RIO - Reference Interconnection Offer for 2005 - was approved last Thursday and introduces a sharp decrease in the prices proposed by PT Comunicações. The regulator took the view that the proposal of PTC did not comply with the principle of cost orientation of prices. The maximum prices established by ANACOM for the RIO 2005 aim also at ensuring a greater convergence with the current practices at European Union level.

The new interconnection prices are characterized by a reduction of 0,05 Euro cents in the call set-up value for each interconnection level (changing to 0.60 Euro cents for interconnection at local level, 0.70 Euro cents for single tandem interconnection and 0,80 Euro cents for double tandem interconnection);  and of 1% in the price per minute at all levels (local, single tandem and double tandem).

ANACOM has further determined an extension of the off-peak period, which is now of 14 hours, from 7 p.m. to 9 a.m.; peak hours are thus reduced to 10 hours, between 9 a.m. to 7 p.m. on working days. The fact that PT already practiced the extended off-peak period in some retail offers (PT Mix 200, PT 200, PT 100) is deemed as an indication, in the view of the regulator, that there are conditions to take forward the process of extension of the interconnection off-peak hours. The concern of the regulator at this level is also to bring Portugal closer to European practices.

Following the approval of the draft decision of ANACOM, a 10-day time limit has been granted to interested parties to assess the defined prices. At the end of this period, it is incumbent upon PT Comunicações to amend the Reference Interconnection Offer within 10 days. 

Maximum prices for call termination and origination services for 2005
Level Termination/Origination 2005 Termination/Origination 2004
Peak Off-Peak Peak Off-Peak
Local 0.68 0.43 0.70 0.45
Simple Tandem 0.97 0.61 1.00 0.63
Double Tandem 1.47 0.90 1.49 0.93

Price per minute, based on a 3-minute call, figures in Euro cents, VAT not included.

ANACOM has also determined that the maximum prices for invoicing, collection and bad debt liability service are set at € 0.0303 cents per call, for shared cost call services, where the cost to be borne by the caller is equivalent, at the most, to Local PT, which means a reduction of 17% regarding 2004. As for the remaining non-free special services, namely customer support services, information services, universal access services, and shared cost call services, where the user bears a cost higher than that of a local call, the price is set at € 0.0389 Euro cents, 25% less than the amount in the scope of RIO 2004.


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