While there was an increase in 4G coverage in Greece, the country still had the second lowest mobile broadband penetration rate for all active users in the EU. This was probably because mobile broadband prices are much higher than the EU average (mobile take-up 49.8%, EU average 84%).
Cyta is the only mobile virtual network operator (MVNO) currently active in the market.
Forthnet also expressed an interest in providing MVNO services, but failed to conclude an
agreement with one of the MNOs. However, it filed a request for dispute resolution with
EETT. Greece lags considerably in relation to the Digital Agenda for Europe targets established in the Broadband Strategy. To make up for lost time, it would benefit from creating the right conditions for private investment, which depend on the the timely adoption and correct implementation of regulatory decisions; the timely release of spectrum necessary for highspeed broadband deployment; and the transposition and smooth implementation of the Broadband Cost Reduction Directive.
Fixed broadband market
99% of Greek households enjoyed basic fixed-line broadband in 2016. Despite its challenging
geography, Greece managed to increase its coverage of rural areas by one percentage point to
97%, which was above the EU average (93%). Its coverage of households with nextgeneration
access (NGA) networks increased by 8 percentage points to 44%, but was still very
low compared to the EU average (76%). Only 1 % of households in rural areas had access to
NGA networks (EU average 40%). This further emphasises the importance of 4G
deployment, where Greece fared well with 80% coverage of households, which was very
close to the EU average of 84%.
Lack of NGA coverage only partly explained the low NGA take-up, which was the second
lowest in the EU. Only 7% of current subscriptions were between 30 Mbps and 100 Mbps.
The lowest fixed-line broadband price (12-30 Mbps or higher) was €21.69 compared to
€21.33 across the EU.
1
However, it is reasonable to assume that positive developments in NGA network deployment
are on the horizon. The market is expected to enter a phase of deployment thanks to the new
regulatory measures adopted in the markets for wholesale local access and wholesale central
access for mass-market products. The new remedies could lead to DSL speeds being upgraded
(vectoring) and help with the deployment of NGA networks in general, protecting investors
from overbuild. Correct implementation of the remedies, which is expected to take 31 months
until August 2019, would present the regulator with a real challenge. The fact that there was
no-one in charge of EETT (the national regulatory authority) for over a year adversely
affected both market regulation and spectrum policy. This was evidenced by a 3 percentage
point regression in achieving the spectrum target. A new Head was appointed in mid-2016.As the incumbent OTE is the only provider so far to invest in VDSL networks, its market
share increased by almost two percentage points from July 2015 to July 2016 to 44.3%, well
above the EU average of 40.7%.
Alternative operators continued to rely heavily on local loop unbundling (LLU) at the main
distribution frame (MDF).
In terms of competitive dynamics, Vodafone Greece completed the acquisition of Hellas On
Line in April. As a result, all three mobile network operators (MNO) now have a fixed-line
footprint. This is important given the clear trend towards bundled services, especially ‘triple
play’. According to the 2015 Eurobarometer survey,
2
60% of Greek households subscribed to
a bundled offer (EU 50%), with 56% of households having internet as part of the bundle (EU
40%) and 23 % having mobile in the bundle (EU 23%). On the contrary, given the high
penetration rate of digital terrestrial television (DTT) in Greece (82% versus EU average of
43%) and the lack of NGA networks, only 9% of households subscribed to a bundle that
included TV (EU 27%). According to data from EETT, the trend towards bundles seemed to
continue apace in 2016, with ‘quad’ and ‘triple play services’ being the main drivers3
. In
readiness for a phase of NGA deployment, the major alternative operators were exploring
strategic co-investment agreements, although they had not ruled out a new round of
consolidation.
While no spectrum was assigned for wireless broadband during the reporting year, Greece did
extend the rights of two providers to use frequencies in the 1800 MHz band for a period of 18
months following a public consultation. This was because the tender procedure could not be
held, owing to delays in appointing a new Head of EETT. Greece extended the rights of use in
the 26 GHz band by law. However, no public consultation was ever conducted.
7
EETT is currently implementing Commission Implementing Decision (EU) 2016/339
harmonising the 2010-2025 MHz frequency band for portable or mobile wireless video links
and cordless cameras used for programme making and special events.
Whilst the Ministry of Digital Policy, Telecommunications and Information has not yet
unveiled its future plans for the 700 MHz band,
8 Greece is working with neighbouring
Mediterranean countries to provide new channels in lower bands in order to be able to migrate
its military systems and DTT services (two multiplexers) that currently occupy the band. In
2016, the State Council found that parts of the legislation which Greece intended to use to
grant only four nationwide TV licences for general content for broadcasting in DTT violated
the constitution.
b. EU and national investments in broadband
Greece restructured its administration in 2016, bringing all digital policy departments under
one ministry (Ministry of Digital Policy, Telecommunications and Information).
A public consultation on a new Digital Strategy for 2016-2021 was launched and completed.
The strategy relies on seven priority actions, with the deployment of NGA network
infrastructure being the first. The Digital Strategy refers to the National Next Generation
Broadband Access Plan for 2014-2020, drawn up in June 2015, and updates it with the new
Gigabit targets. It reaffirms Greece’s intention to finance NGA infrastructure in areas where
there is not already any infrastructure with such NGA capacity.
The broadband strategy is based on the assumption that the private sector will fund most such
investments, with public intervention focusing mostly on areas plagued by market failure
(required funding is expected to be between €1.36 billion and €4.53 billion). Greece is
allotting EUR 304 million of ESI Funds to the deployment of broadband infrastructure,
specifically to high-speed networks (access/local loop >/= 30 Mbps). At present, only 8.6% of
these funds have been used. There are currently no plans for other financial instruments to be
used in broadband deployment.
The strategy reaffirms Greece’s intention to focus on two projects: the rural extension project
(an extension of the rural broadband project), necessary for the country to achieve the target
of 30 Mbps coverage; and superfast broadband, which aims to boost the take-up of ultra-fast
broadband. This will help Greece hit the 100 Mbps target.
According to the NGA plan, required funding is expected to total between €1.36 billion and
€4.53 billion. Greece has no regional broadband plans. However, the plan states that
regional/trans-regional projects have been put in place. Some public financing resources are being earmarked for the deployment of NGA networks. The operational programme
‘Competitiveness, Entrepreneurship and Innovation’ includes €2.54 billion of funding for
broadband.
The Rural Broadband Project was due to be completed and entered the implementation phase
in 2016. The three contractors requested an extension, which was granted until mid-2017. As
the competent authority responsible for monitoring and enforcing access, transparency, nondiscrimination
and price control obligations laid down by the tender, EETT approved the
reference offers. One of the operators has already provided wholesale access.
EETT’s one-stop shop for antenna licensing greatly helped reduce the backlog of unlicensed
antennas and base stations.
9 However, the main problem lies with town planning authorities,
which are not connected online to the one-stop shop. Licensing of the radio network remains
one of the challenges facing providers to complete 4G deployment and fully exploit the
assigned spectrum.Based on the 2016 Consumer Markets Scoreboard,
14 overall consumer satisfaction on
electronic communications services decreased between 2013 and 2015 (e.g. electronic
products (-0.2%), TV subscription (-3.4%), Internet provision (-1.5%), fixed telephony
services (-0.4%), mobile telephony services (-5.8%).)
Bundles
According to the latest Eurobarometer survey, Greek consumers could easily compare
bundles (84%, second only to Italy), with households the most likely to have changed bundles
at least once (80%). It was easier for them to monitor mobile usage (77%, EU average 69%)
rather than fixed-line usage (61%, EU average 71%), and they were largely satisfied with the
clarity of their contract (78%, EU average 68%).
Transparency
EETT developed an online tariff comparison and observation tool called Pricescope, which
aims to increase tariff transparency.
Universal service
The scope of universal service currently includes access to a network at a fixed location,
comprehensive directory and directory enquiry services, and public payphones. In 2016, an
alternative operator (Forthnet) was designated for the first time to provide access at a fixed
location for at least 3 years starting from 2017, with maximum compensation of €4.93
million. Net neutrality
EETT introduced an additional monitoring mechanism to register and classify consumer
complaints on net neutrality. There were no breaches of Regulation (EU) No. 2120/2015
documented in 2016.
Article 6 of Regulation (EU) 2015/2120 states that ‘Member States shall lay down the rules
on penalties applicable to infringements of Articles 3, 4 and 5.’ The deadline to notify the
Commission of these rules and measures was 30 April 2016. Greece failed to notify the
Commission of the penalties referred to in Article 6.
The Commission is looking into the
matter. General penalties still apply, as explained in the sub-section on roaming.
112 and access for disabled end-users to emergency services
The Commission is looking into reports of very long times (28 mins 58 secs) to receive caller
location information for calls to the single European emergency number16. Greece also
reported an abnormally high ratio of false calls (96.93%) and is currently investigating the
reasons for this. Awareness among Greek consumers of 112 remained fairly low (13% knew
that they could use 112 in the EU compared to 48% across the EU, while only 6% knew they
could use it in Greece, compared to 61% in the EU).
Conclusion
