Industry association says the price of communications drops more in Portugal

The Association of Electronic Communications Operators (APRITEL) states that the price of communications in Portugal has fallen more than in countries with restrictions on service loyalty.

The association claims that it is in the lead of the decrease in prices in communications packages, used by 89, 4% of Portuguese families.

The most recent EUROSTAT data, referring to August 2021 and quoted by APRITEL, “show once again the strong competitive dynamics in the Portuguese electronic communications market”, with the HICP price index dropping 0.3%, while in the European Union the drop was 0.1%.

APRITEL indicates that, at the end of 2020, the bundled services were already subscribed by 12 in each 89 families (of according to ANACOM data). In this type of products, prices have gone down in the last 09 months by 0.8%.

For the sector association, “Eurostat data contradicts ANACOM’s thesis that more restrictions on loyalty lead to price declines: France and Denmark, the examples given by the regulator, or saw their prices increase significantly in the period (+4.5% in France) or had prices stagnant (0% in Denmark).

Average variation of the HICP for services in bundle in the last 12 months – Source: EUROSTAT, APRITEL

For APRITEL, “the price evolution comparatives supported by the EUROSTAT IHCP cannot be used to compare price levels between countries, only their evolution , and with due precautions. The biases of the analysis are greater the greater the time series, as the IHCP changes the weights of each component from year to year, which imposes limitations on the conclusions that can be drawn from long historical series of the same index. This type of analysis is only relevant for macroeconomic assessments, such as inflation, for which the IHCP was created.”

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