SourceObservatory for the IS
In 2004 the penetration degree of broadband activity was measured at 0.5%, placing our country in the 25th position in the European Union. However, significant progress has been made upon completion of the 1st half of 2005 and the penetration degree of broadband activity has already gone up to 0.9% based on the most recent data (ΟΤΕ, 01/07/2005).
Moreover, the number of monthly applications for new connections is stable (more than 7,000), a rate which if preserved will result in a penetration degree of 1.5% in the end of the year.
On January 1st there were 51,448 broadband connections in total in Greece. Based on the latest data of OTE presented in table 4.1, in late June 87,193 ADSL connections operate compared to 46,547 connections that were operating in January 1st 2005 (increase of 71.3%).
Table: ADSL Connections in the 1st Half of 2005 (Source: ΟΤΕ)
|Demand (new applications)
After taking into account the number of the other broadband connections (e.g. leased lines, wireless connections, etc.) on January 1st 2005, the total number of broadband connections on July 1st 2005 is estimated to amount to more than 92,000 connections (penetration rate reaching 0.9%). Moreover, this data cited in the table shows that the monthly applications for new connections stably amount to more than 7,000, a rate which if retained, it will result in a penetration rate (degree) of almost 1.5% in the end of the year.
Despite the large increase observed mainly in the past 18 months, the penetration continues to be significantly less compared to the penetration rate in other European countries. The key factors hindering until now the growth of broadband activity include:
- The still small rate of Internet users in Greece (around 20%)
- The intense morphology and fragmentation of Greek geography (distant mountain villages, large number of islands)
- The oligopoly of the business environment of broadband services provision, and
- The lack of content and electronic services which would create more demand.