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TMCNet:  Research and Markets: Greece Telecommunications Report Q1 2013

[November 26, 2012]

Research and Markets: Greece Telecommunications Report Q1 2013

DUBLIN --(Business Wire)--

Research and Markets (http://www.researchandmarkets.com/research/nn8l55/greece) has announced the addition of the "Greece Telecommunications Report Q1 2013" report to their offering.

BMI View: The Greek telecommunications market remains under pressure on all fronts as the new government's austerity measures hit household budgets and individuals' propensity to spend on nonessential services. The mobile market - which BMI believes is overinflated through the continued inclusion of inactive accounts and multiple SIM ownership - is already contracting on the postpaid front.

Operators are responding with pricing changes and better value product bundles. Meanwhile, the 3G and mobile broadband markets are growing steadily and it is only demand for OTE's unbundled local loops that prevents the fixed-line marke from contracting faster than it should.

Key Data:

- Mobile Growth was subdued in H112 owing to increased take-up of prepaid and 3G/mobile broadband services. Wider availability of the operators' HSPA+ networks and increased access to spectrum have helped.

- Our 3G forecasts have not altered as H112 growth reported by key operators was within expectations.

- Vodafone's (News - Alert) ARPU dropped sharply in H112 as further MTR reductions took effect and fewer postpaid subscribers resulted in lower contributions from non-basic services.

Key Trends & Developments:

Cosmote, Vodafone and WIND Hellas spent much of 9M12 changing the prices of their business and mass-market mobile subscription plans, emphasising the lower costs for individual and family plans while beefing up enterprise plans and adding more 'free' monthly data and messaging allowances to further incentive consumers. At the same time, Vodafone and Cosmote have added the latest smartphones and tablet computers to their portfolios. The full impact of these efforts may not become apparent until Q412;

even so, we expect margins to be compromised and ARPUs to be pressured.

Vodafone's withdrawal of its offer to acquire WIND Hellas from its creditors leaves WIND in a difficult position at a time when it most needs financial security and a clearer business strategy. Suggestions that WIND might partner with rival fixed broadband operator CYTA Hellas (which aspires to become an MVNO) have yet to bear fruit.

Companies Mentioned

- Hellenic Telecommunications Organization (OTE)

- Vodafone Greece

- WIND Hellas

- Forthnet

- Hellas Online (HOL)

For more information visit http://www.researchandmarkets.com/research/nn8l55/greece


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