Interconnection prices to be included in the RIO 2004

By determination of 13 November 2003, PT Comunicações S.A. shall submit, pursuant to point c) of paragraph 1 of article 9 of Decree-Law no. 415/98 of 31 December, within 15 days, a proposal concerning the interconnection prices to be in force for the year 2004, which accounts, namely, for the expected cost evolution, grounded in efficiency criteria, among others.

This determination is based on the following assumptions:

Pursuant to Decree-Law no. 415/98 of 31 December, entities with significant market power (SMP), duly qualified to provide (a) fixed telephone networks and/or fixed telephone services and (b) leased lines, are specifically bound to present reference interconnection offers (RIO).

According to paragraph 2 of article 10 of that statutory instrument, it is incumbent upon ANACOM to determine ad publish the “Set of items to be included in the RIO”. As in the case of RIO 2002 and 2003, ANACOM takes the view that the “Set of items” are up-to-date, although the specific conditions related to the RIAO require an analysis prior to their integration in the RIO, interested parties having already been requested to submit data and specific information that qualify ANACOM to develop such an analysis.

Pursuant to article 9 of Directive 2002/19/EC of the European Parliament and of the Council (Access Directive), obligations for access and interconnection imposed under Article 7 of Directive 97/33/EC (obligations concerning cost orientation and reference offer publication) shall be maintained until such time as these obligations have been reviewed and a determination has been made within the scope of the application of the new regulatory framework.

Without prejudice to the analysis currently under way on relevant markets and a subsequent assessment of SMP, it is unlikely that PT Comunicações loses its status of entity with market power in the relevant wholesale markets of fixed network traffic.

Having regard to cost evolutions and variations in the current practise of the European Union, which already have taken place and which are expected to occur, it is necessary to adjust the prices in force for 2004, aiming also at increasing the predictability and stability of market conditions.