Telecom Portugal aims to rebalance completely the voice-telephony tariffs. This rebalancing is partly guaranteed by the present price convention, in force until 1998, via a real reduction of the global level of prices and increases at the rate of inflation of 6 % for the tariffs below costs.
Given that owing to technical progress in the network, cost is increasingly less dependent on distance, cost orientation of tariffs means as a general rule that prices are adjusted such that revenues are rebalanced with costs, i.e.:
- connection and rental revenues cover fixed costs (plus a standard margin),
- local call revenues cover local call costs (plus standard margin),
- trunk call revenues cover trunk calls (plus standard margin),
- international call revenues cover international call costs (plus standard margin).
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