Suspension of PT Comunicações offer ''PT Network Line without Subscription''

/ / Updated on 18.12.2006


1. In a document that entered ICP - ANACOM on 5 December 2002, PT Comunicações, S.A. reported that they had introduced two new optional price plans - referred to as ''PT Network Line without Subscription'' -, applicable to the telephone service, which should be in force as from 4 December.

2. It is a fixed telephone service offer modality in which the traditional network line subscription tariff was replaced by a guaranteed monthly expense that can be converted into traffic.

3. On 16 January 2003, NOVIS TELECOM, S.A. submitted an exposition related to this offer in which this company expresses itself against the respective introduction, considering it a serious disadvantage to the fixed telephone service providers that constitute an alternative to PT Comunicações, S.A..

4. The PT Comunicações, S.A. offer presupposes the possibility of an aggregated sale of traffic and subscription. 

5. The new telephone fixed service providers, which entry in the market is facilitated by indirect access, have not the possibility, in this service provision modality, of making a similar offer.

6. Since the new operators are unable to submit offers that may compete with that one, PT Comunicações, S.A. offer constitutes an obstacle to the entry in the market or to the development of those operators.

7. Pursuant to subsection a) of paragraph 1 of article 8 of Decree-Law no.  415/98, of December 31, PT Comunicações, S.A., in its capacity as entity with significant market power, is committed to comply with the non-discrimination principle in the interconnection offer, which is translated, namely, in its obligation to offer the conditions and information that it applies to its own services, subsidiaries or associated companies to the interconnection applicants that offer similar services and that are in similar conditions  - nº 2 of the same article 8.

8. Furthermore, paragraph 2 of article 33 of the Regulations for the Operation of the Fixed Telephone Service, approved by Decree-Law no. 474/99, of November 8th, requires the operators with significant market power the duty of providing similar access conditions to the network (to the ones that they have or to the ones that the respective subsidiary or associate companies use) to all entities that provide similar services and that are in equal circumstances.

9. However, PT Comunicações, S.A., that has significant market power in the interconnection market or in the fixed telephone network and or fixed telephone service market, does not offer to the remaining operators the possibility of aggregating the subscription and the traffic. Consequently, they probably are violating the obligations contained in those legal rules. 

10. There is, thus, a serious risk for PT Comunicações, S.A. offer being seriously damaging for competition, being therefore urgent to suspend it.

Thus, pursuant to subsection e) of paragraph 1 of article 6, subsection l) of article 26 and paragraph 3 of article 29 of the Statutes of ICP - Autoridade Nacional de Comunicações, and to paragraphs 1 and 2 of article 84 of the Rules of Administrative Procedure, I determine the provisional suspension of the ''PT Network Line without subscription'', for a three-month period, or until a final decision on the matter is made before said deadline expires.
Please notify.

Lisbon, 17 January 2003.