Greece

Greek Telecommunication Organisation (O.T.E.) has developed rather important activities abroad, such as reinforcement in the Balkans and the Eastern Countries. OTE strengthens with constant and careful steps its leading presence to Balkan and former-Soviet Union countries. The target of this effort is the creation of the so-called "Telecommunication Arc".

The first large network owner who announced its intention to penetrate in alternative network market, was the Greek Electricity Company (D.E.I) which is the most extended network in Greece.

The Natural Gas Network seems to be the second that will use its network for alternative telecommunication purposes, since an optical cable and a mobile telephone network has been already established, along the backbone of the gas-network.

OSE (Hellenic Railroad Organisation) is planning the establishment of a new telecommunication company. At the beginning of 2000, OSE will become a profitable enterprise, with modern infrastructure to serve passengers and goods transportation- autonomous telecommunication network, central stations, etc.

Since September 23^rd 1998, the simple telecommunication users have direct and cost effective mobile access via satellite communication. Globalstar and ICO will soon provide satellite telephones. IRIDIUM is commercially represented by Telestet, while Globalstar by Panafon and ICO by Cosmote.IRIDIUM is operated since 23 September, while Globalstar will be operated in 1999 and ICO in 2000.

2. Recent Developments

2.1 O.T.E. Policy

A buying out agreement was signed by OTE for the 35% of Rom Telecom as well as management’s control between Romanian Government and Greek organisation. OTE won the competition, due to its technical offer against is competitors. The share of 35% of the Capital State and the management assumption of the Romanian Telecommunication Organisation is run by terms, which foresee the OTE’s note concerning an extra 16% of Rom Telecom capital. OTE had the help of GTE – Telecom – Americans GTE Corporation Subsidiary. This co-operation will be continued and after the contracts sign with GTE, the latter will play a consultative role towards OTE in relation with Rom Telecom management. Rom Telecom buying out of OTE is estimated substantial, for the Greek Economy and its investments to the Balkanian as for the Greek telecommunication Organisation. OTE with this contract enters a market of 22,6 million people.

Moreover, Panafon and Stet Hellas did their entrance to Athens Stock Exchange. Known Funds such as Templeton, Fidelity, Dreyfur etc have already invested OTE. Morgan Stanley and Bankers Trust have invested in Stet hellas ADRs.

The analysis estimates that the EU pressures will drive the Greek Telecommunication Market to a faster liberalisation, before the 1^st January 2001. The liberation will create new opportunities to Mobile telephony companies, which will have the ability to render digital telecommunication services mainly towards large enterprises.

Those companies have to exploit a "virgin" market since ISDN lines in Greece are limited (30000 active lines), Internet penetration is low (about 1%) while the cost of leased-lines is high.

2.2 Hellenic Railroad Organisation

The creation of alternative telecommunication Network opens in Greece from Public enterprises in co-operation with strategic investors.

HRO’s, DEPA, PEE are companies which have the requisite infrastructure for the creation of alternative networks.

A first survey for such a network on behalf of HRO has been already completed. In particular the survey underlines the following:

• HRO ’s basic strategic seems to be co-operation with major investors.
• This co-operation decreases the investments uncertainty and renders more profits
• Projects implementation will be made by independent companies in which HRO will participate, having the majority in Managerial Council
• The cover of networks efficiency at least 20% is the target for the first year of networks operation
• The financial profit of the project is about at 20%
• The information bandwidth will be 2,5Gbes. HRO will be able to provide up to date telecommunication services along the railway network.

2.3 Digital-Satellite TV

The Digital satellite TV in Greece enters a new phase. Basic elements are the market size and the consumption behaviour of the Greek audience. The major seven provisions for the Greek digital satellite attempt are :

• The Greek Market is rather small in size
• Through the legal explorations and misinterpretations the most interesting element is how attractive will be such a TV service for the mid-Greek Viewer.
• Subscriptions Cost
• The satellite programs will have to be based on attractive programs for the Greek viewer.
• An ambiguity prevails concerning which of the channels or programs will transfer to the digital TV platforms.
• No consolidation regarding the subscribing TV.
• The investment on the digital TV will have depreciation after at least ten years.

2.4 Satellite Programs

All the Greek TV channels coded broadcast from the HotBird 3 through Nethmed -Dutch company-, which brought the subscribing TV in Greece.

• HRT: HRT international produces autonomous 18 hours TV program, with airings, which are made for the emigrant Greeks. The HRT international program is broadcast in Northern America (Canada and USA) through subscribing networks and the same policy was decided for its broadcast in Australia. HRT 's program is cable broadcast in Belgium and Germany, while the Greeks who live in Europe wait for the start of digital satellite TV operation. HRT broadcasts and South Africa after an agreement was made with Africa Multichoice. In its future plans HRT aspires to broadcast in Asia and South Africa. The whole cost of this program overcomes the 3,5 trillions, about 900 millions of which are covered by the government through the satellite connection of HRT with the Cyprus network RIK. It is obvious that HRT 's satellite program requires more investments in order to cover the countries all over the world.
• Antenna: Antenna satellite broadcasts in North America and Australia. In its future plans is the satellite's program expansion in Europe.

• Mega: Mega broadcasts only in Australia, while for Europe waits for the subscribing digital satellite TV start through NOVA.

• SKAI: SKAI broadcasts through Intelsat 602 satellite almost in all European Countries, the Middle, Orient, Iran, Irak, Egypt. The Greek satellite image will be supplemented in the short run when all its TV channels are moved to satellites.