2009 Greece - Telecoms, Mobile, Broadband and Forecasts

Publication Overview

This report covers trends and developments in telecommunications, mobile, Internet, broadband, Internet society and digital TV developments. Subjects include:

·         Market and industry analyses, trends and developments;

·         Facts, figures and statistics;

·         Industry and regulatory issues;

·         Infrastructure;

·         Major players, revenues, subscribers, ARPU, MOU;

·         Internet, VoIP, IPTV;

·         Mobile voice and data markets;

·         Broadband (FttH, DSL, cable TV, wireless);

·         Convergence and digital media;

·         Broadband market forecast for the years, 2009-2012; 2018

Researcher:- Paul Kwon

Current publication date:- December 2009 (8^th Edition)

Next publication date:- December 2010

Executive Summary

A prosperous nation entering a challenging 2010 - Greece experienced an extended period of strong economic growth until the recent global economic turmoil, which exposed weaknesses in Greece’s economy. Among these was a reliance on debt to support recent GDP growth, resulting in a high debt to GDP ratio, second only to Italy among EU nations. Double digit fiscal deficits as a percentage of GDP, and a lack of political will to implement tough reforms to rein in public spending triggered a downgrade of Greece’s credit worthiness in December 2009. The OECD expects Greece’s economy to continue contracting in 2010 before returning to growth in 2011.

Greece’s telecoms industry is not immune to the economic environment, with total revenue contracting in 2008 and expected to regain previous highs at best in 2009 and 2010. The Greek telecommunications market is liberalised although national incumbent, Hellenic Telecommunications Organization (OTE), continues to dominate the markets for fixed-line voice, Internet and broadband services. The regulator has become increasingly successful in nurturing competition, with take up of local loop unbundling well underway.

Broadband penetration in Greece is improving due to competition based on regulatory mandated network access, essential given the lack of strong infrastructure-based competition. Increasing broadband uptake based on DSL networks has supported the launch of convergence services such as broadband TV (IPTV). Triple play initiatives are being spearheaded by the telcos in the absence of cable TV operators. Digital TV services are commercially available via IPTV and satellite. An increase in Internet usage by the broader population is fostering an Internet society, with notable developments in the public administration (e-government) and health (e-health) sectors.

Greece possesses a well developed mobile market with mobile ownership levels in excess of 100% although such penetration levels indicate multiple SIM card ownership. Greece’s mobile market is served by three mobile network operators. Increased mobile market competition has reduced the price difference between fixed and mobile voice services, supporting the trend of substituting fixed lines with mobile. The launch of 3G/HSDPA networks has opened up a new revenue growth opportunity in 2010 centred on mobile broadband, with all three operators offering competitive offerings with generous data allowances.

Key highlights:

·         A healthy wholesale market is developing, with the number of unbundled local lines rising 72% in the year to June 2009. The incumbent continues to struggle in the face of competition, characterised by stagnant growth in both top-line revenue and bottom-line profit. Resistance to developing the wholesale market led the regulator to commence functional separation proceedings in early 2009, with the number of unbundled and share-lines expected to surpass one million moving into 2010.

·         Broadband represents the majority of Internet connections. The incumbent dominates the broadband market through its DSL products. Competition is predominantly based on wholesale offerings and is improving due to the wholesale market. An ambitious plan to deploy a carrier-neutral FttH network connecting two-million homes by 2016 has been revealed by the government.

·         Digital TV is available via satellite, broadband TV (IPTV) and digital terrestrial TV. Lack of existing cable TV services and low satellite TV penetration offers a substantial growth opportunity for broadband ISPs as the broadband Internet access market matures.

·         Greece’s three established mobile network operators have launched 3G/HSDPA services. Growth in 2010 will be focused on promoting 3G take up as existing revenue from voice comes under pressure from competition and regulatory-mandated reductions in mobile termination rates which are scheduled to fall by approximately 37% between 2009 and 2011.

Greece key performance indicators – 2008-2009

(Source: BuddeComm based on industry data)

Data in this report is the latest available at the time of preparation and may not be for the current year.

Table of Contents

• 1. Key Statistics
• 2. Telecommunications Market
  • 2.1 Overview of Greece’s telecom market
    • 2.1.1 Telecoms statistics
• 3. Regulatory Environment
  • 3.1 Background
    • 3.1.1 EU regulatory framework
  • 3.2 Regulatory authority
    • 3.2.1 National Telecommunications and Post Commission (EETT)
  • 3.3 Telecom sector liberalisation in Greece
    • 3.3.1 Privatisation
    • 3.3.2 Interconnection
    • 3.3.3 Access
    • 3.3.4 Number portability
    • 3.3.5 Carrier selection and carrier preselection
• 4. Fixed Network Operators In Greece
  • 4.1 Overview of operators
  • 4.2 Hellenic Telecommunications Organization (OTE)
  • 4.3 Tellas
  • 4.4 FORTHnet
  • 4.5 On Telecoms
• 5. Telecommunications Infrastructure
  • 5.1 National telecom network
    • 5.1.1 OTE
    • 5.1.2 Alternative operators
    • 5.1.3 Satellite networks
    • 5.1.4 Submarine cables
  • 5.2 Telecoms and IT
• 6. Wholesaling
  • 6.1 Overview
  • 6.2 Unbundled services – LLU
  • 6.3 Bitstream access
• 7. Internet Market
  • 7.1 Overview
  • 7.2 Internet statistics
  • 7.3 Greece’s emerging Internet society
    • 7.3.1 Overview
    • 7.3.2 E-government
    • 7.3.3 E-health
• 8. Broadband Market
  • 8.1 Overview
    • 8.1.1 Fixed broadband statistics
  • 8.2 Asymmetric Digital Subscriber Line (ADSL)
  • 8.3 FttH networks
  • 8.4 Wireless broadband
    • 8.4.1 WiFi
    • 8.4.2 WiMAX
  • 8.5 Broadband forecasts – 2009-2012; 2018
    • 8.5.1 Scenario 1 – stronger broadband subscriber growth
    • 8.5.2 Scenario 2 – slower broadband subscriber growth
• 9. Convergence
  • 9.1 Overview
  • 9.2 Overview of broadcasting market
  • 9.3 Digital TV
    • 9.3.1 Satellite-based digital pay TV developments
    • 9.3.2 Digital Terrestrial TV (DTTV)
    • 9.3.3 Broadband TV (IPTV)
• 10. Mobile Communications
  • 10.1 Overview of Greece’s mobile market
    • 10.1.1 Mobile statistics
  • 10.2 Regulatory issues
    • 10.2.1 Significant Market Power (SMP) obligations
    • 10.2.2 Mobile termination rates
    • 10.2.3 EU roaming tariffs
    • 10.2.4 Mobile Number Portability (MNP)
  • 10.3 Mobile technologies
    • 10.3.1 Digital
    • 10.3.2 Third Generation (3G) mobile
  • 10.4 Major mobile operators
    • 10.4.1 Wind Hellas (TIM Hellas)
    • 10.4.2 Vodafone Greece
    • 10.4.3 Cosmote
  • 10.5 Mobile voice services
    • 10.5.1 Prepaid cards
  • 10.6 Mobile data services
    • 10.6.1 Short Messaging Service (SMS)/Multimedia Messaging Service (MMS)
    • 10.6.2 Wireless Application Protocol (WAP)
    • 10.6.3 General Packet Radio Service (GPRS)
    • 10.6.4 Mobile TV
    • 10.6.5 i-mode
    • 10.6.6 BlackBerry
    • 10.6.7 Mobile broadband
    • 10.6.8 Fixed Mobile Convergence (FMC)
  • 10.7 Mobile content and applications
• 11. Glossary of Abbreviations

• Table 1 – Country statistics Greece – 2009
• Table 2 – Telephone network statistics – 2009
• Table 3 – Internet user statistics – 2009
• Table 4 – Internet subscriber statistics – 2009
• Table 5 – Broadband subscriber statistics – 2009
• Table 6 – Mobile statistics – March 2009
• Table 7 – National telecommunications authority
• Table 8 – Telecoms revenue and gross profit – 1998-2009
• Table 9 – Telecoms revenue by operator – 1999-2008
• Table 10 – Interconnection rates – 2005-2008
• Table 11 – Outgoing fixed-line traffic by call type in minutes – 2004-2008
• Table 12 – OTE group financial data – 2006-2009
• Table 13 – Tellas revenue and EBITDA – 2008-2009
• Table 14 – Tellas direct and indirect subscribers – 2008-2009
• Table 15 – Tellas blended, direct and indirect ARPU – 2008-2009
• Table 16 – FORTHnet financial data – 2008-2009
• Table 17 – Fixed lines in service and teledensity – 1995-2009
• Table 18 – OTE fixed lines in service – 2005-2009
• Table 19 – ICT market revenue – 2006-2010
• Table 20 – Wholesale lines by type – January 2009
• Table 21 – Cost of local loop unbundling and share access – 2006-2008
• Table 22 – OTE combined unbundled and shared lines – 2005-2009
• Table 23 – Collocation availability and uptake – 2007-2008
• Table 24 – Internet user, subscribers and penetration rate – 1999-2009
• Table 25 – Assigned domain names – 2007-2008
• Table 26 – Internet penetration among businesses by employee size – 2004-2008
• Table 27 – Percentage of businesses receiving orders online by employee size – 2004-2008
• Table 28 – Proportion of population purchasing online – 2005-2008
• Table 29 – Business online revenue as a percentage of turnover – 2005-2008
• Table 30 – Uptake of e-government services by businesses – 2004-2008
• Table 31 – Uptake of e-government services by individuals – 2004-2008
• Table 32 – Data types stored by GP practices – 2007
• Table 33 – Electronic data exchanged by GP practices – 2007
• Table 34 – Fixed broadband subscribers by access type – January 2009
• Table 35 – Fixed broadband subscribers and penetration rate – 2003-2009
• Table 36 – Fixed broadband lines by speed – January 2009
• Table 37 – OTE retail and wholesale ADSL subscribers – 2005-2008
• Table 38 – FORTHnet broadband and LLU subscribers – 2007-2009
• Table 39 – Forecast fixed broadband subscribers – higher growth scenario – 2009-2012; 2018
• Table 40 – Forecast fixed broadband subscribers – lower growth scenario – 2009-2012; 2018
• Table 41 – Advertising revenue per broadcaster – 2008
• Table 42 – Audience share by broadcaster – all day – 2004-2008
• Table 43 – Audience share by broadcaster – prime time – 2004-2008
• Table 44 – Nova financial data – 2008-2009
• Table 45 – Nova subscribers – 2008-2009
• Table 46 – Mobile operators, subscribers and annual change – March 2009
• Table 47 – Mobile subscribers and penetration rate – 1996-2009
• Table 48 – Wind Hellas financial data – 2008-2009
• Table 49 – Wind Hellas ARPU – 2008-2009
• Table 50 – Cosmote financial data – 2007-2009
• Table 51 – Cosmote subscribers, ARPU and minutes of use – 2006-2009
• Table 52 – Ratio of prepaid to postpaid subscribers – 2000-2008
• Table 53 – Cosmote prepaid subscribers – 2005-2009
• Table 54 – Vodafone prepaid subscribers – 2005-2008
• Table 55 – Mobile broadband subscribers and penetration rate – 2004-2008

• Exhibit 1 – The EU regulatory framework for communications
• Exhibit 2 – Access, the local loop and unbundling – an overview
• Exhibit 3 – The Economist Intelligence Unit (EIU) annual E-readiness criteria
• Exhibit 4 – 2001 2G auction results in Greece
• Exhibit 5 – 2001 3G auction results in Greece