Greece - Telecoms, IP Networks, Digital Media and Forecasts

Publication Overview

This report provides a comprehensive overview of trends and developments in the Greek telecommunications market. The report analyses the mobile, internet, broadband, digital TV and converging media sectors. 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 forecasts for selective years to 2020. 

Key developments:

Cosmoline’s WiMAX licence withdrawn; economic crisis stalls national FttH project; steady rise in digital satellite subscriber base; OTE’s VDSL launch to relaunch in mid-2012; OTE cleared to re-launch VDSL in mid-2012; EC presses Greece to facilitate broadband network access; six telcos negotiate for national open access FttB network; IPTV market stuck in doldrums; OTE launches new satellite TV service and plans to sell Hellas Sat; Wind Hellas bankruptcy; economic effects on mobile market spending; amended laws reducing SIM card penetration; 2G spectrum to be refarmed for 3G and 4G use; 9000MHz and 1800MHz auction results; Wind Hellas invests in HSPA+ network upgrade; ATHENA submarine cable from Cyprus to Greece nears completion; regulator assesses work programme; economic crisis affecting telecoms revenue and investment; OTE signs three-year wage deal in bid to save cash; wholesale FttC access determined; operator data to end-2011; market developments into early 2012.

 Companies covered in this report include:

Vodafone, Cosmote, Wind Hellas, OTE, On Telecom, ForthNet, Hellas Online.

Researcher:- Henry Lancaster
Current publication date: April 2012 (10th Edition)

Executive Summary

Regulator permits OTE to relaunch retail and wholesale VDSL

BuddeComm’s half-yearly publication Greece - Telecoms, IP Networks, Digital Media and Forecasts, provides a comprehensive overview of the trends and developments in the telecoms and digital media markets in Greece, including the regulator’s latest market data, operator data to the end of 2011 and market developments into 2012.

Economic conditions

Greece’s continuing period of economic difficulties provides little course for optimism. In return for two bailouts amounting to some €240 billion the government has been obliged to introduce a range of austerity measures, as well as sell many assets including a significant stake in the incumbent telco OTE. A recent debt sustainability report from the IMF, ECB and EC warned of a 160% GDP debt ratio by 2020 if Greece fails to deliver structural reforms including €3.3 billion in cuts for 2012 alone and further reductions in public sector jobs. Dwindling revenue from taxes as businesses fail effectively means that Greece has little chance of returning to growth in 2013, as the bailout providers hope. Indeed, new debt issued by the government in 2014/2015 depends on economic recovery, and since creditors are unlikely to purchase Greek debt if the economy falters the government is likely to require an additional €50 billion bailout after 2014.

Telecom revenue overview

Greece’s telecoms market has been significantly affected by the contracting economy, with a number of operators posting falling revenue and increased borrowing costs. The market has contracted since 2008, exacerbated by retail competition which has driven prices down, and the effects of a number of regulator measures. The market has been buoyed by the broadband and nascent mobile data sector, though operators should look to tough times for two to three years at least.

Broadband market

Greece’s internet market is underdeveloped by EU standards, with relatively low penetration rates. In the absence of an effective competing cable broadband platform, broadband is dominated by DSL though LLU has in recent years steadily eroded the market dominance of OTE. Consumers can expect faster services from mid-2012 when OTE is able to re-launch its VDSL offers suspended in 2011 over wholesale pricing and access issues. Delays in building a national FttX network – initially aimed at delivering 100Mb/s services to 40% of the population by 2015 –prompted a number of telcos in 2011 to discuss a shared open access network incorporating some or all of the operators’ existing duct and cable infrastructure.

Mobile market

The mobile market is dominated by Cosmote, Vodafone and Wind Hellas. The bankruptcy of Wind Hellas and its re-emergence in early 2011 under the auspices of a holding company, encouraged Vodafone briefly to consider buying the operator. Wind is investing in network upgrades in a bid to rebuild its business viability. Thus far, take-up of mobile broadband and high-end data services has been slow though the recent auction of 900MHz and 1800MHz spectrum should provide a boost for LTE services in coming years.

Greece– Key telecom parameters – 2010; 2013

(Source: BuddeComm)

Key Highlights

• GSM licences due to expire were auctioned in early 2012 rather than offered for automatic renewal. The auction generated much needed revenue for the government, and will enable the three MNOs to pursue mobile broadband options in their bid to increase revenue in coming years.
• OTE’s suspended VDSL deployment has been cleared for re-launch from mid-2012 following the regulator’s decisions on access and wholesale pricing. The move will boost the availability of higher broadband data speeds for consumers, so helping Greece catch up with its European neighbours.
• The government’s national strategy for fibre access networks is aimed at building a nationwide open access FttH network providing 40% geographic coverage by the end of 2015 at an estimated cost of €2.1 billion (mostly derived from the private sector). Delays have pushed back delivery to 2018, while the regulator has since facilitated negotiations between six telcos to develop a cheaper national FttB network.

This report is essential reading for those needing high level strategic information and objective analysis on the telecom sector in Greece. It provides further information on:

• Market liberalisation and regulatory issues;
• The impact of the global economic crisis;
• Telecoms operators – privatisation, acquisitions, new licences;
• Mobile data market developments in coming years in light of spectrum auctions and new license awards in 2010;
• 3G developments, regulatory issues and technologies including HSPA and LTE;
• Broadband migration to an FttH architecture;
• Historical and current subscriber statistics and forecasts;
• ARPU statistics and forecasts. 

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 economic plight
  • 2.2 Overview of Greece’s telecom market
• 3. Regulatory Environment
  • 3.1 Background
    • 3.1.1 EU regulatory framework
    • 3.1.2 Revised NFR
  • 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 Wind Hellas
  • 4.4 ForthNet
  • 4.5 On Telecoms
  • 4.6 Hellas Online (HOL)
  • 4.7 Cyta Hellas
• 5. Telecommunications Infrastructure
  • 5.1 National telecom network
    • 5.1.1 OTE
    • 5.1.2 NGN
    • 5.1.3 Alternative operators
    • 5.1.4 Satellite networks
    • 5.1.5 Submarine cables
• 6. Internet Market
  • 6.1 Greece’s Internet society
  • 6.2 E-government
    • 6.2.1 Infrastructure
• 7. Fixed Broadband Market
  • 7.1 Overview
  • 7.2 Asymmetric Digital Subscriber Line (ADSL)
    • 7.2.1 VDSL
  • 7.3 Fibre-to-the-Home (FttH) networks
  • 7.4 Wireless broadband
    • 7.4.1 WiFi
    • 7.4.2 WiMAX
    • 7.4.3 Satellite
  • 7.5 Mobile broadband
• 8. Digital Media
  • 8.1 Overview
  • 8.2 Digital TV
    • 8.2.1 Satellite-based digital pay TV developments
    • 8.2.2 Digital Terrestrial TV (DTTV)
    • 8.2.3 Broadband TV (IPTV)
• 9. Mobile Communications
  • 9.1 Overview of Greece’s mobile market
  • 9.2 Regulatory issues
    • 9.2.1 Significant Market Power (SMP) obligations
    • 9.2.2 Mobile termination rates (MTRs)
    • 9.2.3 Mobile Number Portability (MNP)
    • 9.2.4 Spectrum refarming
  • 9.3 Mobile statistics
  • 9.4 Mobile market developments
    • 9.4.1 900MHz and 1800MHz licence renewal
    • 9.4.2 Third Generation (3G) mobile
  • 9.5 Major mobile operators
    • 9.5.1 Wind Hellas
    • 9.5.2 Vodafone Greece
    • 9.5.3 Cosmote
  • 9.6 Mobile voice services
    • 9.6.1 Prepaid cards
  • 9.7 Mobile data services
    • 9.7.1 Short Messaging Service (SMS)/Multimedia Messaging Service (MMS)
    • 9.7.2 General Packet Radio Service (GPRS)
    • 9.7.3 HSPA
    • 9.7.4 Mobile TV
    • 9.7.5 Fixed Mobile Convergence (FMC)
  • 9.8 Mobile content and applications
• 10. Forecasts
  • 10.1 Fixed broadband subscribers – 2010 - 2013; 2020
    • 10.1.1 Scenario 1 – stronger broadband subscriber growth
    • 10.1.2 Scenario 2 – slower broadband subscriber growth
• 11. Glossary of Abbreviations

• Table 1 – Country statistics – 2011 (e)
• Table 2 – Telephone network statistics – 2012 (e)
• Table 3 – Internet user statistics – 2012 (e)
• Table 4 – Broadband subscriber statistics – 2012 (e)
• Table 5 – Mobile statistics – 2012 (e)
• Table 6 – National telecommunications authority
• Table 7 – Telecom sector revenue – 2000 - 2012
• Table 8 – Interconnection rates – 2006 - 2009
• Table 9 – OTE LLU lines – 2006 - 2011
• Table 10 – Fixed number portings – 2004 - 2010
• Table 11 – CPS lines – 2004 - 2010
• Table 12 – WLR lines – 2009 - 2010
• Table 13 – Fixed-line revenue – 2003 - 2013
• Table 14 – Fixed-line traffic – 2003 - 2013
• Table 15 – OTE group financial data – 2006 - 2011
• Table 16 – OTE group operating data – 2009 - 2011
• Table 17 – OTE company financial data by sector– 2010 - 2011
• Table 18 – Wind Hellas financial data – 2009 - 2010
• Table 19 – FORTHnet Group financial data – 2007 - 2011
• Table 20 – FORTHnet Telecom financial data – 2009 - 2011
• Table 21 – Fixed lines in service and teledensity – 2000 - 2013
• Table 22 – OTE PSTN lines in service – 2005 - 2011
• Table 23 – Online purchases by individuals – 2005 - 2013
• Table 24 – E-education usage by individuals – 2007 - 2012
• Table 25 – Uptake of e-government services by businesses – 2004 - 2012
• Table 26 – Uptake of e-government services by individuals – 2004 - 2012
• Table 27 – Internet user penetration – 1999 - 2013
• Table 28 – Dial-up internet subscribers – 1998 - 2012
• Table 29 – Fixed broadband subscribers and penetration – 2003 - 2013
• Table 30 – Broadband market share by platform – 2007 - 2012
• Table 31 – OTE retail and wholesale ADSL subscribers – 2007 - 2011
• Table 32 – ForthNet broadband and LLU subscribers – 2007 - 2011
• Table 33 – Mobile broadband subscribers – 2004 - 2013
• Table 34 – Netmed Hellas pay-TV subscribers – 2009- 2011
• Table 35 – Netmed Hellas pay-TV financial data – 2009- 2011
• Table 36 – OTE IPTV subscribers – 2009- 2011
• Table 37 – Mobile number portings – 2004 - 2010
• Table 38 – Mobile subscribers (SIM) and penetration – 1996 - 2013
• Table 39 – Active mobile subscribers (SIM) – 2003 - 2013
• Table 40 – Wind Hellas ARPU – 2009 - 2010
• Table 41 – Wind Hellas subscribers – 2009 - 2010
• Table 42 – Vodafone subscribers – 2008 - 2011
• Table 43 – Vodafone ARPU – 2008 - 2011
• Table 44 – Vodafone revenue – 2008 - 2011
• Table 45 – Cosmote financial data – 2007 - 2011
• Table 46 – Cosmote ARPU – 2006 - 2011
• Table 47 – Cosmote subscribers – 2006 - 2011
• Table 48 – Ratio of prepaid to postpaid subscribers – 2000 - 2012
• Table 49 – Cosmote prepaid subscribers – 2005 - 2011
• Table 50 – Vodafone proportion of prepaid subscribers – 2005 - 2011
• Table 51 – Total SMS messages sent – 2002 - 2012
• Table 52 – Forecast fixed broadband subscribers – higher growth scenario – 2010 - 2013; 2020
• Table 53 – Forecast fixed broadband subscribers – lower growth scenario – 2010 - 2013; 2020

• Chart 1 – Telecom sector revenue – 2000 – 2012
• Chart 2 – OTE group financial data – 2008 – 2011
• Chart 3 – FORTHnet Group financial data – 2007 – 2011
• Chart 4 – Fixed broadband subscribers and penetration – 2003 – 2013
• Chart 5 – ForthNet broadband and LLU subscribers – 2007 – 2011
• Chart 6 – Netmed Hellas pay-TV subscribers – 2009- 2011
• Chart 7 – Mobile subscribers (SIM) and penetration – 2003 – 2013
• Chart 8 – Wind Hellas ARPU – 2009 – 2010
• Chart 9 – Vodafone ARPU – 2008 – 2011
• Chart 10 – Cosmote financial data – 2007 – 2011

• Exhibit 1 – The EU regulatory framework for communications
• Exhibit 2 – 2G auction results – 2001
• Exhibit 3 – 900MHz and 1800MHz auction spectrum – 2011
• Exhibit 4 – 900MHz and 1800MHz auction results – 2011
• Exhibit 5 – 3G auction results in Greece – 2001