33,6% Growth for the Greek Telecommunications Market in 1999, according to a recent study by Strategic International/ K.Kataras SA. 

Economy led the Way
Greece's effort to obtain in the European Monetary Union acceptance criteria, considerably ameliorated the country's macroeconomic ratios allowing for the Greek business world to grow. GDP increased by 3.5%, and projections foresee a 4% increase in 2000, while inflation was limited to 2.5%, allowing for cheap investment capitals. Additionally, during most of 1999, the Athens Stock Exchange experienced a robust growth, providing considerably cheap capitals both for investors and participating companies.

Telecommunications in Constant Growth
Following the general optimistic economic climate, the Greek Telecommunications Market sustained its high growth rate for 1999. Its value reached 2.041,7 bln Drs., increased by 33.51% from the 1.528,1 bln of 1998, marking the higher growth rate of the last years.

Figure 1

The Greek Telecommunications Market Size, 1999 (bln Drs.)

OTE Driving the Market
Taking advantage of the existing state monopoly in the fixed telephony, OTE presented 1,022 bln Drs. in revenues for 1999, representing 50,05% of the total telecommunications market.
With its revenues increasing with at slower rates than the overall market, the anticipated deregulation of PSTN telephony in 2001 is expected to bring strong competition for OTE, which anyway confronts the problem of reduced profits.

Mobile telephony still growing fast
Reversing any forecasts, the performance of mobile telephony companies in 1999 was remarkably good. Most impressive of all was the performance of Cosmote, that in 1999 increased its revenues by 613% to reach 117 bln Drs. in sales and 1,048,000 subscribers.

Figure 2

Mobile Telephony Subscribers in Greece (thousand) - 1996-1999

The Equipment Market outraced other sectors in growth
The Telecommunications Equipment Market performed surprisingly well in 1999, marking an enormous growth of 61,97% and contributing considerably in the general upraise of Telecommunications in Greece. The most important reasons for this growth in equipment needs for 1999 are:

Rearrangements in the Top 20 Telecommunications Companies
With OTE still in the lead, Cosmote making a fast progress and Mobile Telephony Providers loosing ground from the Telecommunications Equipment Companies, the total revenues of the 20 leading telecommunications companies raised by 25.6 % from 1998 to reach 2,251 bln Drs. in 1999. In contrary to the revenues, however, profits were reduced by 0.92%, as a result of the intense competition in Telecommunications and the fall in mobile and fixed telephony charges.

Table 1

The Top 20 Telecommunications Companies in Greece, 1999 Revenues (bln Drs.)

The Future seems promising
With Greece already a member of the EMU, interest rates dropping continuously, predicted GDP increase rates between 4% (2000) and 4,5% (2001) in the next years, the 2004 Olympic Games creating enormous technical requirements for Telecommunications, the 3rd Community Support Framework providing 750 bln Drs for the Information Society and mainly with the anticipated market deregulation on 1/1/2001, it is obvious that the Greek Telecommunications Market has a brilliant future. Strategic International/ K.Kataras SA analysts forecast that after a short term drop below 30%, the growth rates of the telecoms market will reach again this year's levels, especially after 2002, a year when telecoms market size will reach 5 trillion Drs.

More Information about This Study at www.strategic.gr.
For more information about this study, complete with table of contents, tables and charts list, and with some indicative analyses and tables of the study provided, as well as for orders or other info about this study, visit the site of Strategic International SA, at http://www.strategic.gr.