Pursuant to Rule 13a-16 or 15d-16 of the
1069 - 300 Lisboa, Portugal
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No ___X____
| RELEASE |  |
Portugal Telecom
Announces
New Fixed Telephone Service
Prices
Lisbon, Portugal, 26 April 2004 – Portugal Telecom, SGPS, S.A. (“PT”) (NYSE: PT; Euronext: PTCO.IN) announces that the Portuguese telecommunications regulator (Anacom) and Directorate General for Enterprise (Direcção Geral de Empresas) have approved the 2004 fixed telephone service prices proposed by PT Comunicações.
These prices were set within the Universal Service Convention complying with a price cap of CPI-2.75%, in terms of average annual change and assuming an inflation range of 1.5% to 2.5% as per the Portuguese State Budget for 2004.
The new prices will become effective as of 2 May 2004, as set out below:
| 2004 | |||||||
| Installation Fee | 71.83 | ||||||
| Monthly Fee | 12.66 | ||||||
| Calls | Local | Regional | National | ||||
| Set up Price | 0.070 | 0.070 | 0.070 | ||||
| Time Credit (seconds) | 60 | 30 | 15 | ||||
| Price per minute | |||||||
| Peak(1) | 0.030 | 0.040 | 0.050 | ||||
| Off Peak(2) | 0.010 | 0.020 | 0.030 | ||||
(1) Peak: working days from 9.00 a.m. to 9.00 p.m..
(2) Off Peak: working days from 9.00 p.m. to 9.00 a.m. and non working days.
The nominal change in prices will be the following:
| Nominal Changes | 2 May 2004 | FY 2004 Average | |||
| Installation | 0.0 | 0.0 | |||
| Monthly Rental | 2.9 | 2.5 | |||
| Traffic | |||||
| Local | 3.0 | 2.1 | |||
| Regional | -16.8% | -12.6% | |||
| National | -24.0% | -18.0% | |||
| Total Basket | -1.20% | -0.76% | |||
These changes in prices represent a further rebalancing of fixed telephony prices, thus reinforcing PT’s competitive position in the domestic market.
This information is also available on PT’s IR website http://ir.telecom.pt.
| Contact: | Nuno Prego, Investor Relations Director |
| [email protected] | |
| Portugal Telecom | |
| Tel.: +351.215001701 | |
| Fax: +351.213556623 |
|
PORTUGAL TELECOM, SGPS, S.A.
| ||
| By: |
/S/
Nuno Prego
| |
|
Nuno Prego
Investor Relations Director
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This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.