2009 Greece - Telecoms, Mobile, Broadband and Forecasts

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Last updated: 21 Dec 2009 Update History

Report Status: Archived

Report Pages: 62

Analyst: Paul Kwon

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 (8th 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

Sector

2008

2009 (e)

Broadband

 

 

Fixed broadband subscribers (thousand)

1,510

1,700

Fixed broadband penetration rate

13%

15%

Subscribers to Telecoms Services

 

 

Fixed-line telephone subscribers (thousand)

5,980

5,900

Mobile phone subscribers (thousand)

17,400

18,300

(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.

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