Universal service - Fixed telephone service residential tariff


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Decision on the tariff proposal for the residential telephone service at a fixed location, within the scope of the universal service, as presented by PTC on 27.10.2009.

  1. On 27/10/09, PT Comunicações, SA (PTC) submitted a proposal to ICP-ANACOM to amend the tariff of the Universal Service (US) with respect to the scenario which is applicable on an optional basis upon customer request.

  2. The proposal submitted by PTC provides for an increase in the discount on the monthly line charge, in respect of the monthly charge of the main base tariff, from 60 cents (including VAT, 50 cents excluding VAT) to 70 cents (including VAT, 58 cents excluding VAT). The following table summarizes the fixed telephone service tariff provided by PTC. Under this proposal, the new tariff would be applied retroactively from 01/07/09.
Table 1. Fixed telephone service tariff offered by PTC on 27/10/09

Values exclude
VAT

Initial price (euros)

Time credit (seconds)

Working days 9am-9pm

Weekdays 21h-09h

Weekends and holidays 09am - 9pm

Weekends and holidays 09am - 9pm

Working days 9am-9pm

Working days 9pm – 9am

Weekends and holidays 09am - 9pm

Weekends and holidays 09am - 9pm

Local

0.0700

0.0700

0.0700

0.0700

60

60

60

60

National

0.0700

0.0700

0.0700

0.0700

30

60

60

60

Installation

71.83

 

 

 

Line rental

12.08

Source: PTC

Continuation.Table 1. Fixed telephone service tariff offered by PTC on 27/10/09

Values
exclude
VAT

Price per minute (euros)

Working days
9am - 9pm

Working days
9pm - 9am

Weekends and holidays
09am - 9pm

Weekends and holidays
09am - 9pm

Local

0.0261

0.0084

0.0084

0.0084

National

0.0496

0.0084

0.0084

0.0084

Installation

 

 

 

Line rental

Source: PTC

  1. With respect to the price plan applicable by default (which is characterised by free traffic during the periods between 9pm-9am on working days and during weekends), PTC has not submitted any proposal for alterations.

  2. By determination of 14/12/04 1, approval was given to the obligations in the retail narrow band markets applicable to the companies of Grupo PT notified as having significant market power (SMP) in each of these markets, in particular: (i) to ensure transparency through the publication of tariffs, quality of service levels and other conditions of the offer; (ii) to refrain from showing undue preference to specific end users; (iii) cost orientation of prices; (iv) to maintain an analytical accounting system; (v) to maintain separate accounts; and (vi) to maintain affordability.

  3. To ensure affordability and cost orientation, a specific price-cap has been adopted for the residential market, as a way of progressively achieving cost orientation of prices and of transferring efficiency gains to the customer.

  4. Pursuant to the above determination, it was noted that, until ICP-ANACOM establishes modifications to the specific operation of the obligation of price control, the price-cap provided for in the Universal Service Price Convention 2 regarding the subscriber mode, of CPI-2.75% would continue to apply to services previously provided for in the same document, that is, the installation of an analogue network line, analogue network line rental and telephone communications in the country.

  5. In 2008, the applicable rate of CPI is 2.5%, as stipulated in the State Budget for this year, whereby the value of applicable price-cap is -0.25%.

  6. Having examined the proposal submitted by PTC, it was concluded that:

    a. The weighted variation of the prices resulting from the proposed tariffs of the fixed telephone service applicable on an optional basis upon customer request, as submitted by PTC and with retroactive effect from 01/07/09, is compatible with the applicable price-cap, achieving the average annual change in the basket of -0.27%;

    b. With respect to the tariff option to be applicable by default, wheras PTC has not proposed any amendment, it is concluded that the variation of the prices (derived from the impact of tariff change made in 2008) is -0.44%, which is also compatible with the price-cap applicable.

  7. Accordingly, under the powers provided for in points b), d), f) and h) of paragraph 1 of article 6 of the Statutes in annex to Decree-Law No 309/2001 of 7 December and in accordance with paragraph 3 of article 86 of paragraph 1 of article 93 of Law No 5/2004 of 10 February and in accordance with the regulatory objectives set out in points a) and c) of paragraph 1, points  a) and b) of paragraph 2 and point a) of paragraph 4, all of article 5 of the same Law, the Management Board of ICP-ANACOM determined not to oppose the tariff proposal for the residential telephone service at a fixed location within the scope of the universal service, as presented by PTC on 27/10/09, subject to fulfilment of the obligations of transparency which may be undertaken.

Notes
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1 Imposition of obligations of narrowband retail marketshttps://www.anacom.pt/render.jsp?contentId=419637.
2 The Price Convention for the Universal Service of Telecommunications, concluded on 30/12/02 between DGCC - Direcção-Geral do Comércio e da Concorrência (Directorate-General of Commerce and Competition), ICP-ANACOM and PTC, established the price regime applicable to the provision of the Universal Service (a) FTS in subscriber mode: installation of an analogue line, analogue network line rental and telephone communications in the country, (b) FTS in the public pay telephone mode - telephony in the country, and (c) Telephone directories and the information service, setting out that the prices of the US should take into account, inter alia, the progressive adjustment of prices to costs and the guarantee of affordability to all users - Convenção de Preços para o Serviço Universal de Telecomunicaçõeshttps://www.anacom.pt/render.jsp?contentId=959875 (30.12.2002)https://www.anacom.pt/render.jsp?contentId=959875.