Retail tariff of the telephone service provided at a fixed location (PTC)

Determination on the retail tariff of the telephone service provided at a fixed location (PTC)

1. PT Comunicações S.A. (PTC) submitted to ICP – ANACOM, by fax dated 05/05/05, a  proposal with the prices applicable to residential clients of the telephone service provided at a fixed location, to come into force on 01/07/05, according to the table below, having this Authority forwarded this proposal for information, on 10/05/05, to the Associação Portuguesa para Defesa do Consumidor – Portuguese Association for Consumer Protection (DECO), the Federação Nacional das Cooperativas de Consumo – National Federation of Consumers Cooperatives (FENACOOP), the União Geral de Consumidores – General Consumer Union (UGC) and the Associação de Consumidores de Portugal – Association of Portuguese Consumers (ACOP).

2. The proposal submitted by PTC presents a tariff structure which comprises only two levels (Local/Regional and National) as a result of the equalisation of prices of the former Local and Regional levels.

3. The alteration of the time credit included in the initial price should also be stressed, from 45 seconds (for the Regional level) to 60 seconds for the Local/Regional level, and, regarding the National level, the different time credit included in the initial price according to the PH and OPH, which is of 30 seconds for the PH and of 60 seconds for the OPH (the current tariff states 30 seconds both for the PH and OPH).

4. As regards retail markets, for residential clients, of narrowband access to the public telephone network at a fixed location and of publicly available local and/or national telephone services provided at a fixed location (markets 1 and 3, respectively, according to Commission Recommendation 2003/311/EC), PTC, the operator with significant market power in the referred markets, shall comply with the obligations established under the determination of ICP – ANACOM of 14/01/04 on the imposition of obligation in the narrowband retail markets (see /template12.jsp?categoryId=137882https://www.anacom.pt/render.jsp?contentId=410374), namely: (i) to ensure transparency; (ii) not to show undue preference for specific end-users; (iii) to ensure the cost-orientation of prices; (iv) to maintain accessible prices, by means of the compliance with a price-cap, comprising, for residential clients, the installation, monthly payment and Local, Regional and National calls.

5. Having assessed the proposal presented by PTC, the weighted variation of prices of the fixed telephone service provided at a fixed location was concluded to be -0.75%, which is compatible with the IPC-2.75 p.p. variation, maintained in force by the Determination of ICP – ANACOM of 14/12/04.

6. The proposal submitted by PTC was also deemed:

(a) To represent a closer approach to current European practises, through the reduction of the number of tariff levels (as a result of the equalisation of prices of the Local and Regional levels), in view of the fact that in 10 of the remaining Member States of the EU there are only two levels, and in one Member State (Luxembourg) there is only one level;

(b) To result in retail prices which may be replied to by other operators based on interconnection prices in force, being also verified that the referred proposal does not discriminate between residential clients, the obligation of non-discrimination being thus complied with;

(c) To be compatible with the cost orientation principle, in view of the fact that, as none of the prices increase, this should lead to the non-increase of margins of services included in the telephone service provided at a fixed location (installation, monthly payment and Local, Regional and National calls), which are so far in surplus.

7. In view of the above, the Board of Directors of ICP – ANACOM determined not to oppose to the entry into force on 01/07/05, of the tariff proposal submitted on 05/05/05, by PT Comunicações, S.A., without prejudice to the compliance with the due disclosure and/or publication obligations, pursuant to paragraph 3 of article 48 of Law no.  5/2004, of 10 February.