Three hours of work each month just to afford basic internet
In a country that once led the world in the pace of its digital acceleration, Portugal now finds itself ranked 84th in internet affordability—a fall of sixteen places in a single year, at a moment when its largest telecom operators raised prices by nearly eight percent. The gap between Portugal's digital ambitions and the daily economic reality of its households has widened into a quiet crisis, one measured not in megabits but in hours of labor required simply to stay connected. The tension between industry self-interest, regulatory intent, and the lived experience of ordinary citizens is a story as old as infrastructure itself, and Portugal is now living one of its sharper chapters.
- Portuguese workers must labor over three hours each month just to afford the cheapest broadband available—a cost eleven times heavier than what their Romanian counterparts face, exposing a stark affordability gap within Europe.
- Three major telecom operators raised prices by up to 7.8% in 2023, and the country's overall digital quality of life ranking collapsed from 20th to 29th in the same year—a coincidence that is difficult to dismiss.
- Portugal's fall from 1st to 24th in internet speed improvement rankings signals that last year's digital momentum has stalled, even as electronic infrastructure and cybersecurity scores quietly improved.
- The telecom regulator Anacom and the industry association Apritel are locked in a data war over whether Portuguese prices are fair, each wielding different methodologies to tell opposite stories to policymakers and the public.
- New market entrants Digi and Nowo hold spectrum licenses won through a competition-focused 5G auction, but with Nowo facing a Vodafone takeover bid and Digi yet to launch, meaningful price pressure on incumbents remains a promise rather than a reality.
Portugal's internet affordability has become a crisis difficult to ignore. A new global ranking places the country 84th worldwide in the cost of basic broadband access—a drop of sixteen positions in a single year—requiring workers to spend an average of three hours and twenty-one minutes of monthly wages on the cheapest fixed connection available. That burden is eleven times greater than what Romanians face. The annual Digital Quality of Life Index, compiled by Surfshark across 121 countries, also records a sharp fall in mobile internet affordability, where an additional two hours of wages are needed each month.
The timing is difficult to separate from cause. In 2023, Portugal's three largest telecom operators raised prices by as much as 7.8 percent. That same year, the country's overall digital quality of life ranking fell from 20th to 29th globally. Perhaps most striking is the reversal in internet speed improvement: Portugal held first place worldwide in 2022 for the rate at which speeds were accelerating, then fell to 24th. Internet quality—measuring speed and reliability—dropped from 9th to 28th. Not all indicators worsened; electronic infrastructure rose eight places, and cybersecurity strengthened from 7th to 6th.
At the heart of the affordability debate is a conflict between two competing narratives. The industry association Apritel cites a Deloitte study placing Portugal second-lowest in EU telecom prices when comparing equivalent service packages. Regulator Anacom counters with Eurostat data showing Portuguese telecom prices rose 14.6 percent between 2009 and mid-2023, while EU prices fell 8.5 percent over the same period. This disagreement has directly shaped policy: Anacom structured its 5G spectrum auction to invite new competitors, awarding licenses to Nowo and Digi over the fierce objections of incumbent operators.
Whether those new entrants can translate their licenses into genuine competitive pressure remains uncertain. Nowo has yet to launch commercial services and is the subject of a Vodafone takeover bid. Digi is building infrastructure and aims to launch in early 2024. For Portuguese households watching their broadband bills rise, the question of whether competition will arrive in time is anything but abstract.
Portugal's internet costs have become a problem that can no longer be ignored. According to a new global ranking released this month, Portuguese workers must spend an average of three hours and twenty-one minutes each month just to afford the cheapest fixed broadband available—a burden eleven times heavier than what Romanians face with their country's most affordable option. The annual Digital Quality of Life Index, compiled by Surfshark since 2019 and covering 121 countries this year, has placed Portugal at 84th in internet affordability, a stunning collapse of sixteen positions in a single year.
The timing is damning. In 2023, the three largest telecom operators in Portugal raised their prices by as much as 7.8 percent. That same year, the country's overall standing in the Digital Quality of Life Index plummeted from 20th place to 29th. The affordability crisis extends beyond fixed broadband: mobile internet requires an additional two hours, five minutes, and twenty-five seconds of monthly wages to access. The Surfshark analysis bases these calculations on the cheapest available service in each market and the average hourly wage in each country, using data from the International Telecommunication Union and other sources.
The decline in affordability has dragged down Portugal's performance across the board. In internet quality specifically—a measure of speed and reliability—the country fell from 9th globally in 2022 to 28th in 2023. Most striking is the collapse in speed improvement rankings: Portugal held first place worldwide in 2022 for the rate at which internet speeds were accelerating, then dropped to 24th. Not everything has deteriorated. Portugal improved its standing in electronic infrastructure, rising eight places to 32nd, and strengthened its cybersecurity and data protection position from 7th to 6th. Public service digitalization also improved slightly, moving to 27th place, though the country's ranking for digital inclusion of government services declined while its capacity to leverage artificial intelligence improved.
The affordability question has become a flashpoint in Portuguese telecom policy precisely because the industry's two main voices tell completely different stories about whether prices are fair. In 2019, the operators' trade association Apritel commissioned a Deloitte study concluding that Portugal had the second-lowest telecom prices in the European Union—but only when comparing packages with identical services and characteristics across countries. The telecom regulator Anacom, by contrast, uses Eurostat data to make a different argument: between late 2009 and July 2023, telecom prices in Portugal rose 14.6 percent while prices across the EU fell 8.5 percent.
This disagreement has shaped policy. Anacom designed a 5G spectrum auction specifically intended to encourage new competitors to enter the market, a move the established operators fiercely opposed. The auction resulted in spectrum licenses going to Nowo and Digi. Nowo, which has not yet launched commercial offerings, is itself the target of a takeover bid from Vodafone. Digi has been installing network infrastructure and plans to launch service in early 2024. Whether these new entrants can actually pressure incumbents on pricing remains an open question—and for Portuguese households watching their broadband bills climb, the answer cannot come soon enough.
Citas Notables
Between late 2009 and July 2023, telecom prices in Portugal rose 14.6 percent while prices across the EU fell 8.5 percent— Anacom (telecom regulator), citing Eurostat data
La Conversación del Hearth Otra perspectiva de la historia
Why does it matter that Portugal dropped sixteen places in one year? That seems like a big swing.
It signals something broke. A country doesn't fall that far that fast unless prices moved sharply upward while wages stayed flat. The operators raised prices up to 7.8 percent in a single year—that's the mechanical cause.
But the ranking itself—is it just about raw cost, or is there something else embedded in it?
It's about affordability relative to what people earn. So it's not just that broadband costs money; it's that the cost has become disproportionate to income. Three hours of work per month for basic internet is the measure. That's the lived experience.
The regulator and the operators are telling opposite stories about whether prices are actually high. How do you square that?
They're measuring different things. Apritel compares identical packages across countries—which makes Portugal look competitive. Anacom compares price trends over time—and shows Portuguese prices rising while European prices fell. Both are true. Both matter. But the trend is what people feel.
So the new competitors—Digi and Nowo—are supposed to fix this?
That's the theory. Anacom designed the auction to force competition. But Nowo hasn't launched yet and is being bought by Vodafone, an incumbent. Digi is coming in 2024. Whether they actually undercut prices or just carve out a niche remains to be seen.
What does it say about Portugal that it was first in the world for internet speed improvement just last year?
It says the infrastructure was improving. But speed and affordability are different problems. You can have fast internet nobody can afford. That's where Portugal is now.