Universal postal service - tariffs and Price and Quality Conventions for 2008-2010

On 10 July 2008, CTT - Correios de Portugal and ANACOM entered into universal postal service Price and Quality Conventions to prevail for the years 2008-2010, covering reserved postal services and non-reserved postal services pertaining to the universal service.

This Price Convention, that governs and defines the price-setting rules concerning services pertaining to the universal postal service provided by CTT, in compliance with the principles of cost orientation, transparency, non-discrimination and uniformity as regards price application, establishes, inter alia, that the variation of prices of reserved postal services shall not exceed the inflation target measure provided for in the State Budget, less 0,3% in 2008 and 0,4% in 2009 and 2010. Where any deviations from the inflation initially envisaged are identified, they shall be included in the maximum price variation of the following year. The deadline set for CTT to disclose to users the prices of the universal service has also been extended from five to ten working days.

On the other hand, the Quality Convention, which sets out and publishes the parameters and the minimum levels of quality of service associated to the provision of the universal postal service, includes now the obligation, resulting also from ANACOM's determination of 4 April 2002, for CTT to publish in its website, in the Official Gazette and in postal stations, both the indicators of quality of service defined pursuant to the Convention and levels reached in the previous civil years.

Both Conventions take effect as from 1 January 2008, and are valid from a three-year period, being renewable for successive one-year periods of time, except where terminated by either party.

On 16 July 2008, ANACOM decided not to oppose the entry into force on 1 August 2008 of the tariff proposal for the universal postal service (covering reserved and non-reserved postal services) notified by CTT, without prejudice to the need for specific and independent analysis of the discount proposal that applies to the international editorial mail service. It was also decided not to oppose the shortening of the time to notify ANACOM of prices, as provided for in paragraph 1 of article 5 of the Convention, being incumbent upon CTT to undertake an advertising campaign that guarantees that users are clarified and informed no later than 10 working days before the date the new prices enter into force.

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