Contents

Introduction

Τhe European facts/data

Lower prices act as a catalyst

Introduction

The data pertaining to the degree of broadband access in our country are encouraging according to the recent announcement of the Observatory for the IS since – following many years being left behind – the growth rate of indicators creates optimism that the distance between our country and other European countries with regard to the use of broadband access can be covered within a reasonable time period.

In accordance with the data cited in the 3rd in the row fact sheet of the Observatory (which systematically monitors within the framework of its role, the progress of Greece with respect to the development of fast Internet and records it in periodical studies), the penetration rate of broadband access amount to 2.66% on 1-7-2006, compared to 1.5% on 1-1-2006, significantly raised by 77.3% (1.16 percentage units approximately).

The study – drawn up by executive members of the Observatory with the assistance and disposition of data provided by agencies, organizations, and corporations that implement activities in the field of electronic communications – also characterizes as very positive the fact that the average number of applications for new broadband connections is equal to 27,000. In other words, an increase of the growth rate of penetration by 80% is observed, compared to the data of the previous six-moth period (July – December 2005).

The total number of the broadband connections in operation throughout the country is estimated to amount to 296,800 connections (data from ΕΕΤΤ and ΟΤΕ until late June 2006). The foregoing number encompasses the OTE connections (282.965), the estimated number of connections from other providers amounting to 11,000 approximately, and the other broadband connections provided by OTE, i.e. leased lines, wireless connections, etc. amounting to 2,778. 

The European facts/data

For the purposes of comparison, the penetration rate of broadband access (which is determined by the number of connections per 100 inhabitants) in the 15 initial EU members states, amounted to 14.46% in January 2006 compared to 9.81% in January 2005, increased by4.65%. Similarly, during the same time period, the penetration rate in Europe of 25 member states amounted to 12.8%, increased by 4.2%.

The highest growth rates are observed in Finland (7.5%) and Luxembourg (7.3%) while Holland, United Kingdom, Denmark, Sweden and France come after. It is noted that at the level of the 25 member states, the total increase of broadband lines made an impressive growth with 60 million retail connections.

Lower prices act as a catalyst

The increasing trend in the acquisition of broadband connections observed in Greece during the period under examination is inter alia associated with the significant decreasing trend of the average total cost of purchase and use. The prices of fast (broadband) Internet were decreased in the 1st half of 2006 from 20.7% up to 28.3% (depending on the speed of access), compared to the July – December 2005 period.

However, it should be noted that the catalogue prices in Greece continue to be more expensive than the respective ones applying in most countries of the EU (in line with a research conducted by I.T.U, in November 2005), a fact that is due to the small market size and the limited fro the time being services. Nevertheless, a significant positive factor is the attempts of upgrading the access speeds without an additional cost for the end user – attempts aiming at the further diffusion of broadband access and the attraction of new users.

In accordance with the forecast made by the Observatory for the IS, the preservation of the retail demand at the current levels shall contribute to the absolute increase of the penetration rate by at least 1.5%, i.e. around 4.1%, in late 2006.

You can find more information on the Observatory’s study regarding the penetration of fast Internet in our country, together with graphs and tables at the following electronic address: http://www.observatory.gr.

Moreover, the Observatory offers in addition the possibility of obtaining and processing statistical data via the «Online Statistics» application added to its website. It is about an application-tool which provides any interested party with free access to the statistical data disposed by the Observatory, allowing at the same time:

• development of dynamic tables with statistical data,
• development of graphs,
• storing tables in different file types (excel, html, txt).