Thursday, 02 July 2015 05:33

Greek tragedy averted in telco market Featured

By

Along with the rest of the country, the Greek telco market is in a mess. But telco analyst Paul Budde thinks it will prove more resilient than much of the economy.

As Greece defaults on its debts after years of economic mismanagement, its telco sector is on the ropes. As the country goes to the polls this weekend to vote on the Government’s response to the austerity measures being demanded by the country’s creditors, the teklco industry is wondering whether it has a future at all.

Telco industry analyst Paul Budde, who tracks the telco markets in many countries, thinks it will pull through. “Telecoms as a sector is sheltered to a degree by the necessity of access,” he says in a recent newsletter to clients. “People will forgo most goods and services other than internet connectivity, and the test for telcos is to retain customer trust and quality services. The revival of the Greek economy, more than most others, depends on it.”

But Budde said the crisis will prolong what has already been a a profound change in the country's telecom sector. “There had been optimism on the market’s prospects after the sector was liberalised in 2001, when the stock market was still healthy).

“This encouraged a number of players to set up as telcos, and during the next few years a sequence of bankruptcies, mergers and rolling-door new market entrants radically overhauled the sector.

“The decline in revenue kicked in from 2008, and continues still as customers cut back on discretionary spend, cut off fixed-lines and stop their pay TV subscriptions. The sector's dwindling revenue has meant that its contribution to GDP has fallen steadily from a high of 4.5% in 2007 to 2.9% in 2013 and an estimated 2.6% by 2015, among the lowest in Europe.”

Budde quotes data from telco regulator EETT which shows that operators’ turnover in 2013 dropped by 12.1% year-on-year. “Gross profit among telcos has fallen from a high of €2.6 billion in 2007 to some €700 million in 2013 and an anticipated €400 million in 2015.

“The dominant telco OTE, itself encumbered by cost-cutting targets being implemented for fiscal 2015, reported a 2.4% fall in revenue for the first quarter of 2015, year-on-year, while EBITDA fell 3.4% and net profit fell 27.6%.”

Budde says this is likely lead to a degree of musical-chairs among the smaller players, with some unable to compete and so exiting the market, while others may become subject to takeovers. “OTE has experienced significant challenges, but is supported by the organisational ability and financial clout of its parent Deutsche Telekom. Despite market liberalisation, OTE continues to dominate all sectors in the market.”

Budde’s analysis of the Greek telco market is available here (subscription required).


Subscribe to ITWIRE UPDATE Newsletter here

GRAND OPENING OF THE ITWIRE SHOP

The much awaited iTWire Shop is now open to our readers.

Visit the iTWire Shop, a leading destination for stylish accessories, gear & gadgets, lifestyle products and everyday portable office essentials, drones, zoom lenses for smartphones, software and online training.

PLUS Big Brands include: Apple, Lenovo, LG, Samsung, Sennheiser and many more.

Products available for any country.

We hope you enjoy and find value in the much anticipated iTWire Shop.

ENTER THE SHOP NOW!

INTRODUCING ITWIRE TV

iTWire TV offers a unique value to the Tech Sector by providing a range of video interviews, news, views and reviews, and also provides the opportunity for vendors to promote your company and your marketing messages.

We work with you to develop the message and conduct the interview or product review in a safe and collaborative way. Unlike other Tech YouTube channels, we create a story around your message and post that on the homepage of ITWire, linking to your message.

In addition, your interview post message can be displayed in up to 7 different post displays on our the iTWire.com site to drive traffic and readers to your video content and downloads. This can be a significant Lead Generation opportunity for your business.

We also provide 3 videos in one recording/sitting if you require so that you have a series of videos to promote to your customers. Your sales team can add your emails to sales collateral and to the footer of their sales and marketing emails.

See the latest in Tech News, Views, Interviews, Reviews, Product Promos and Events. Plus funny videos from our readers and customers.

SEE WHAT'S ON ITWIRE TV NOW!

BACK TO HOME PAGE
Graeme Philipson

Graeme Philipson sadly passed away in Jan 2021 and a much valued senior associate editor at iTWire. He was one of Australia’s longest serving and most experienced IT journalists. He is the author of the only definitive history of the Australian IT industry, ‘A Vision Splendid: The History of Australian Computing.’

He was in the high tech industry for more than 30 years, most of that time as a market researcher, analyst and journalist. He was founding editor of MIS magazine, and is a former editor of Computerworld Australia. He was a research director for Gartner Asia Pacific and research manager for the Yankee Group Australia. He was a long time weekly IT columnist in The Age and The Sydney Morning Herald, and is a recipient of the Kester Award for lifetime achievement in IT journalism.

Graeme will be sadly missed by the iTWire Family, Readers, Customers and PR firms.

Share News tips for the iTWire Journalists? Your tip will be anonymous

WEBINARS ONLINE & ON-DEMAND

GUEST ARTICLES

VENDOR NEWS

Guest Opinion

Guest Interviews

Guest Reviews

Guest Research

Guest Research & Case Studies

Channel News

Comments