Insights & Media

Newsletters

2022-11-14
New electronic communications act

Newsletters

The Electronic Communications Act (Law 16/2022, of 16 August 2022) came into force on 14 November 2022. The definition of “Electronic communications services” will henceforth also cover internet access services and number-based and number-independent interpersonal communications services.

GENERAL AUTHORISATION REGIME

The provision of electronic communications networks or services, accessible to the public or otherwise, is subject to a general authorization regime.

Undertakings providing number-independent interpersonal communications services and to those providing access services to a public electronic communications network through a radio local area network, where that provision is not part of an economic activity or part of a public service which is not dependent on the conveyance of signals on such network shall not be, however, be subject to such regime.

Undertakings intending to provide public electronic communications networks and publicly available electronic communications services are required to report the starting of activity to the National Regulatory Authority (Autoridade Reguladora Nacional) (ARN in the Portuguese acronym) in advance. 

AMMENDMENTS TO LAW 41/2004, OF 18 AUGUST

Location data may be recorded, processed, and made available to organizations with legal authority to receive or handle emergency communications.

AMMENDMENTS TO LAW 99/2009, OF 4 SEPTEMBER

The criteria to determine the size of the undertakings for the purpose of establishing the amount of the fines applicable in the event of an infringement have been revised.

The members of the governing or management bodies and those responsible for the management or supervision of the areas of activity of such legal entities, may be subject to the fine provided for the acts carried out by the latter. Such fine is especially reduced when, in a clear and serious violation of their duties, while knowing or being expected to know of the infringement, no appropriate measures are taken to prevent or immediately put an end to such infringement.

Defendants may only pay a fine on their own volition in case of minor infringements or serious infringements resulting from negligence.

AMMENDMENTS TO DECREE-LAW 24/2014, OF 14 FEBRUARY

ANACOM (the National Communications Authority) is responsible for overseeing compliance with the provisions of DL 24/2014, of 14 February and for handling administrative offence proceedings involving the provision of electronic communications, audiotext, message-based value-added services or postal services.

The processing of administrative offenses in the communications sector is carried out electronically under terms to be defined by ANACOM.

OVERVIEW OF THE MAIN CHARACTERISTICS OF THE SUBSCRIBED SERVICES

Prior to the conclusion of the contract, undertakings are required to provide consumers with a concise, easy-to-read summary on a durable medium of the main elements of the services covered by the contract. Such summary must include, inter alia:

  • The main characteristics of the services provided;
  • The activation prices;
  • Any recurring or consumption-related charges;
  • The duration of the contract;
  • The conditions for the renewal and termination of the contract.

BILLING

Publicly available electronic communications services are billed on a monthly basis and must include the following information:

  • Breakdown of services rendered and corresponding prices;
  • Remaining duration of the lock-in period (período de fidelização) and amount due for early termination of the contract at the end user's initiative;
  • Information on the existence of the social tariff for the provision of broadband internet access services and its applicability to low-income consumers or consumers with special social needs, if applicable.

SERVICE DOWNTIME

When the services are unavailable for more than 24 hours, whether consecutive or accumulated per billing period, for reasons not attributable to the end user, the undertaking must credit an amount corresponding to the price that would be due for the provision of the service during that period, whether or not the end user so requests, and reimburse the latter for the costs incurred as a result of the service downtime.

In the event the services remain down, for more than 15 days after such unavailability has been reported, the end user may terminate the contract, free of any charge.

LOCK-IN PERIOD

Without prejudice to the obligation to provide services with no associated lock-in periods, the possible lock-in periods are 6, 12 and 24 months.

For contracts [1]  with an automatically extended lock-in period, the end-user may terminate the contract at any time after such extension, with up to one month's prior notice, without any charges, except those related to the use of the service during the notice period.

TERMINATION OF CONTRACT FREE OF CHARGE

Undertakings providing publicly available electronic communications services [2]  may not claim any charges in the event of breach of lock-in periods, in the event of:

  • Change of permanent residence to a location where the undertaking does not provide the service subscribed or any equivalent service; 
  • Unemployment due to fact not attributable to the consumer (resulting in a loss of available monthly income);
  • Permanent or temporary (more than 60 days) incapacity for work, resulting in a loss of available monthly income
  • Unforeseeable emigration to a third country.

The right to terminate the contract must be exercised by the consumer by giving at least 30 days written notice.

 EARLY TERMINATION OF THE CONTRACT

 In case of early termination by the consumer of a contract with a lock-in period, the charges imposed by the undertaking cannot exceed the lesser of the following amounts:

  • The advantage afforded to the consumer, proportional to the remainder of the lock-in period; or
  • A percentage of the monthly payments to fall due and payable. Such percentage will correspond to: (i) 50% of the monthly payments falling due if the termination occurs during the first year of the contract or 30% of the monthly payments falling due if the termination occurs in the second year, in case of an initial lock-in period or a subsequent lock-in period with change of the local loop installed; (ii) 30% of the monthly payments falling due, in case of a subsequent lock-in period without change of the local loop installed.

SERVICE LEVEL BREACH 

The significant, continuous, or recurring discrepancy between the actual performance of the electronic communications services [3] and the performance indicated in the contract is grounds for termination of the contract by the end-user, free of charge.

CHANGE OF SERVICE PROVIDER

In the event of a change of Internet access service provider, the new provider must handle the change process and the previous provider must continue to provide services under the same conditions until the new provider activates its services. The interruption of services during the changing process may not exceed 1 working day.

 SUSPENSION OR TERMINATION OF THE CONTRACT

The contract is suspended in the event of:

  • Loss of the location where the services are provided;
  • Change of residence to a location outside of national territory;
  • Absence from the place of residence due to imprisonment, disability, long-term illness, condition requiring assistance provided or to be provided by a third party;
  • Unemployment or sick leave.

 The contract remains suspended for the duration of its underlying cause. If the suspension is extended for more than 180 days, the contract may terminate if the holder or his/her representative so requests, without any charge to the contract holder.

 CONTRACTUAL AMMENDMENTS PROPOSED BY THE UNDERTAKING

 End users may terminate the contract, free of charge, unless the changes:

  • Are exclusively for the benefit of the end user; or
  • Have no adverse effect on the end user; or
  • Result from the application of a law or an ANACOM order/regulation.

CHARGING FOR GOODS OR SERVICES PROVIDED BY THIRD PARTIES

Undertakings providing Internet access services or publicly available number-based interpersonal communications services may only charge end users the payment of non-electronic communications goods or services that are not part of the service subscribed by the end user, where the end-user has given prior, express and specific consent to pay for such goods or services by way of a statement issued on a durable medium.

UNBLOCKING OF EQUIPMENT

After the lock-in period has expired, no amounts can be charged for unlocking equipment. The cap amounts that can be charged for unlocking equipment during the initial 24 months of the contract (with or without a lock-in period) are established.


[1] With the exception of number-independent interpersonal communications services and transmission services used for the provision of machine-to-machine services.

[2] With the exception of number-independent interpersonal communications services and transmission services used for the provision of machine-to-machine services

[3] Not applicable to Internet access services or number-independent interpersonal communications services.