Retail Prices Among Fixed Networks (I)

/ / Updated on 28.11.2006

By deliberation of 21 September 2000, and taking into account that:

i. Following the analysis of the tariff system, it was verified that no justification was presented for the cost orientation of prices mentioned. Furthermore, no evidence was presented which justified the significant price differences between the proposed tariff and the base-tariff of the fixed telephone service;

ii. It was also verified that the tariff system presented does not comply with the cost orientation principle;

iii. Calls carried out between PT clients and the clients of the other fixed telephone service providers are classified as FTS, as they meet the requirements set out in paragraph a) of Article 2 of the Regulation for Exploiting the Fixed Telephone Service (REFTS); in fact, these calls are an offer to the general public of direct voice transportation, in real time, in set places;

iv. In accordance with article 34 of the REFTS, the prices applicable to the fixed telephone networks and the fixed telephone service (FTS) must follow the principles of equality, transparency and non-discrimination and that prices for access and use of the fixed telephone networks and the FTS, to be charged by the respective operators and or providers which hold significant market power in this market, must obey the cost orientation principle;

v. ICP's Board of Directors has declared Portugal Telecom S.A. as an entity with significant market power in the fixed telephone and/or FTS market;

vi. The practice of these prices, which are substantially higher to those of the FTS for calls within PT's network, may constitute an inevitable obstacle to the entry in the market of fixed telephony in direct access regime, possibly hindering the development of competition in this important part of the telecommunication markets and which, according to Article 16 of the Law of Bases of the telecommunications sector, telecommunication network operators and service providers are forbidden from any practices which falsify conditions for competition or which bring about abuse of the dominant position;

vii. Establishing a price for this FTS provision must be done urgently so as to promote competition among operators, a better programming of their investment decisions, the diversity of services offered and users' freedom to choose;

viii. It is difficult to maintain the same structure and tariff concepts, as a result of the non-correspondence between the numbering ranges of PT and the new operators / providers of the FTS;

ix. It is also worth noting that in the other E.U. countries and in accordance with the available information, there are no special tariff systems for these types of calls where historic operators charge their clients the same prices, irrespective of whether the call is terminated on its network or on the network of another licensed operator, a situation which is particularly interesting within a perspective of tariff transparency and defending the rights of the consumer,

ICP's Board of Directors has determined that, in accordance with that set out in Article 51 of the REFTS and taking into account that set out in Article 34 of the same diploma :

  • PT must present a new tariff proposal, within a 10-day period, which complies with the tariff principles established in the REFTS, namely with regard to verifying the cost orientation principle.
  • This tariff system shall be applied to all the traffic related to the year 2000.