BUSINESS

Basic fixed-line contract heading for extinction

VANGELIS MANDRAVELIS

TAGS: Business

Back in the day we’d just have a simple contract for a landline with the phone company, but today this is fast being replaced by packages comprising multiple communications services. Analysts say the trend of phone companies offering multi-service packages is leading to the extinction of the traditional contract solely concerning landline phone services.

According to the National Telecommunications and Post Commission (EETT), by the end of 2016, only 30 percent of contracts concerned simple landline phones. The remaining 70 percent were for multiple services, including fixed-line or mobile telephone and internet.

Tellingly, in 2016, only 24 percent of telephone connections were used exclusively for making phone calls. The provision of multiple services has been powered both by technological progress and by the generally high level of competition among firms in the industry.

The opening up of the market in the middle of the previous decade placed an emphasis on double-play services as companies endeavored to compete with OTE, Greece’s biggest telecoms operator, by offering telephony and Internet together at attractive prices.

In the last few years, quadruple-play services, including fixed-line, internet, mobile and pay-TV connections, are increasingly making their presence felt. According to EETT, at the end of 2016, more than 137,000 households received quad-play services in one account. Indeed, this figure is almost seven times higher than at the end of 2015. In the future, it is estimated that quad-play connections will increase, mainly due to the increased market penetration of pay-TV.

Given its comparative advantages, OTE is also moving in the same direction even though it has yet to advertise this. Vodafone and OTE are the only two providers in the Greek market that have the infrastructure to offer quadruple-play services.

As of this fall, Wind-Hellas will also offer quad-play services, mainly via the Internet. However, at the moment, the overwhelming majority (60 percent) of multi-service connections are for double-play and triple-play connections. According to the latest figures, almost 300,000 customers (households) used triple-play connections at the end of June.
 

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