BROADBAND INTERNET ACCESS COST (BIAC)
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1 BROADBAND INTERNET ACCESS COST (BIAC) 15 Prices as of February 15 GREECE This study was carried out for the European Commission by 1
2 Greece 1. Broadband price by speed 1 and offer type In Greece, more than 7% of broadband subscriptions have a download speed comprised between and Mbps. Even if the most popular speed range is the same in Greece as at the EU level, take-up of high-speed offers is however largely lower in Greece. Indeed, only 3.3% of the subscriptions have a speed of at least Mbps, of which none of them is above Mbps. At the same time, while Double play including fixed telephony is undoubtedly the most popular product on the Greek broadband market (i.e. around 8% of the total number of subscriptions), less than % of the Greek broadband subscriptions remain Standalone offers or fixed broadband combined with mobile telephony only. None of the five main operators is providing offers with a speed above Mbps and Double play offers including TV are not available at all. Looking now at the broadband prices in Greece, it appears that the price of the least expensive offers in Greece is generally a bit lower than the EU average (i.e. between 5 and % lower). There are however two exceptions in the speed category - Mbps: the cheapest Standalone offer is % more expensive that the EU average and the cheapest Triple play is 1% more expensive than the EU average. Figure 1: Greece: Broadband price per speed and offer type (least expensive offer in EUR/PPP, February 15 data) 1 Speed refers to the (maximum) download speed of the offer as advertised on the ISPs websites. 2
3 2. Recent evolutions in broadband prices Between 12 and 15, the evolution of broadband prices has not followed a uniform trend in Greece. However, it can be observed that the prices of the offers between and Mbps has significantly decreased, especially for Standalone and Double play offers with fixed telephony (i.e. respectively -41% and - 28% over the last four years). Standalone 2-12Mbps -Mbps 12-Mbps Double play with Tel Chart Title 2-12Mbps 12-Mbps -Mbps Double play with TV Triple play Chart Title 2-12Mbps 12-Mbps -Mbps Figure 2: Greece: Recent evolutions in broadband prices (least expensive offer in EUR/PPP, February 12, 13, 14 and 15 data) 2 2 The evolution in the prices of offers above Mbps is only presented for offer type(s) for which at least 2 offers are available during at least 2 successive years, including 15. 3
4 3. Internet Service Providers competition The least expensive offers of the five main ISPs covering at least 9% of the fixed broadband market compare as follows for all speed baskets and types of service offerings: Standalone 2+ Mbps - 4 Mbps CYTA OTE EU28: Mbps - 8 Mbps CYTA EU28: Mbps - Mbps Wind CYTA Forthnet EU28: Mbps - Mbps CYTA Wind Forthnet OTE Table 1: Greece: Least expensive offers per ISP (in EUR/PPP, February 15 data) At prices which are on average 22.7 % lower than the second cheapest option on the market, Cyta is undeniably the cheapest provider on the Greek broadband market. There is however one exception for Standalone offers in the speed range 12- Mbps where the least expensive offer of Wind is slightly cheaper than the one of Cyta. In the absence of cable offers on the Greek market, the least expensive offers are systematically provided through xdsl for the speed ranges 2-4 Mbps, 4-8 Mbps and 12- Mbps and through FTTx for the highest speed category. OTE EU28: Double play with Tel 2+ Mbps - 4 Mbps CYTA OTE EU28: Mbps - 8 Mbps CYTA EU28: Mbps - Mbps CYTA Wind Forthnet EU28: Mbps - Mbps CYTA Wind Forthnet OTE OTE EU28: Triple play 2+ Mbps - 4 Mbps CYTA OTE EU28: Mbps - 8 Mbps CYTA EU28: Mbps - Mbps CYTA OTE Forthnet - - EU28: Mbps - Mbps CYTA OTE EU28:
5 4. Price breakdown Greece 2+ Mbps to 4+ Mbps to 12+ Mbps to + Mbps to 4 Mbps 8 Mbps Mbps Mbps Standalone xdsl xdsl xdsl FTTx Double play with Tel xdsl xdsl xdsl FTTx Double play with TV Triple play xdsl xdsl xdsl FTTx Table 2: Greece: Technology of the least expensive offer (February 15 data) By comparing the least expensive offers of a single ISP for different types of products (within the same speed basket) and for different speeds (for the same product), the Bundle premiums and NGA premiums can be calculated. The average of the premiums for all ISPs are presented below as Member State premiums and are compared with the EU average 3. Bundle premium Adding fixed telephony to a Standalone offer costs on average between 3.3 and 6.7 EUR in Greece (depending on the speed range). Compared to the EU average, the telephony premium is therefore between 17 and 58% lower in Greece. Furthermore, consumers pay between 7.9 and 18.4 EUR extra to add TV services to Double play offers with telephony; which is up to 7% more expensive than the EU average (i.e. for offers in the speed range 12- Mbps). Finally, adding both services at the same time costs around 15 EUR for the slowest and the fastest offers (which is lower than the EU average) and up to 22 EUR for the offers in the speed range between 12 and Mbps (which is approximatively 3 EUR more expensive than the EU average). Figure 3: Greece: Bundle premium (in EUR/PPP, February 15 data) 3 This is calculated as the average of the Member State premiums. 5
6 Very high-speed premium (NGA premium) 4 In Greece, consumers pay on average between.4 and 15.5 EUR extra for a - Mbps offer compared to a 12- Mbps offer (depending on the offer type). This very-high speed premium is between two and three times higher than the EU average. Figure 4: Greece: NGA premium (in EUR/PPP, February 15 data) 4 Calculations based on the comparison of the least expensive offers per ISP 6
7 5. Background information List of ISPs considered in the BIAC sample ISPs in BIAC 15 sample OTE (incumbent) Cyta Forthnet xdsl, FTTx and Satellite Wind Available offers on the Greek market Take-up of offers on the Greek market 5 Breakdown of available offers Greece EU28 Per speed basket 2 Mbps or lower.% 5.7% 2-4 Mbps 14.5% 3.5% 4-8 Mbps 6.6% 7.3% 8-12 Mbps.%.2% 12- Mbps 47.4% 24.4% - Mbps 31.6% 34.9% + Mbps.% 13.9% Per technology xdsl (up to 24 Mbps) 57.9% 23.5% Cable.% 22.3% FTTx 36.8% 41.% Other 5.3% 13.2% Per type of offer Standalone offer 21.1% 36.7% Double play with Tel 55.3% 28.4% Double play with TV.% 11.7% Triple play 23.7% 23.2% Take-up of broadband services Greece EU28 Per speed range Below 2 Mbps.% 1.8% At least 2 but below Mbps 24.9% 25.7% At least but below Mbps 71.8% 46.7% At least but below Mbps 3.3% 17.1% At least Mbps.% 8.7% Fixed broadband in a bundle % of households having broadband access that have subscribed to a broadband offer bundled with at least one other service % of households having broadband access with Mobile telephony % of households having broadband access with Fixed telephony (with or without mobile telephony) % of households having broadband access with Television (with or without mobile telephony) % of households having broadband access with Fixed telephony and Television (with or without mobile telephony) 91.8% 68.3% 2.% 3.3% 79.6%.%.%.%.2% 25.% 5 Source: Special Eurobarometer 414: e-communication and telecom single market household survey, January 14 data and Electronic communications market indicators collected by Commission services, through National Regulatory Authorities, for the Communications Committee (COCOM), January 15 data 7
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