ECONOMY

New fund for 5G investments

new-fund-for-5g-investments

The Greek government is creating a mutual fund for business holdings, named Faistos, for the implementation of investments in companies active in the research and development of 5G applications and services.

This is according to a bill that Digital Governance Minister Kyriakos Pierrakakis intends to bring to Parliament as early as on Tuesday.

The Faistos fund is set to create the necessary ecosystem in Greece for the utilization of fifth-generation cellphone networks. In doing so, along with incentives for front-heavy investments included in the 5G license tender, the government expects to accelerate the realization of investments by telecommunication companies for the creation of a network that will be five times faster than 4G.

This is because, according to telecom experts, these investment internationally go hand-in-hand with demand, which will begin from enterprises.

The Faistos fund capital will derive from 25% of the state revenues – initially at 367 million euros – from the 5G license auction to take place soon concerning four frequency zones. If in the future more zones become technically available for 5G networks and the rights to their use go up for grabs, again 25% of state revenues will go to the new fund’s assets.

Besides the anticipated takings of more than €90 million through the 5G tender, the Faistos cash will also come from private financing, as private parties and institutional investors will also be able to participate in its assets. As an entity the fund will be controlled by the Hellenic Company of Assets and Participations, known as the hyperfund.

The bill will also provide for the abolition of fax machines from the state mechanism and the creation of the Personal Number – i.e. the identification number of individuals for their transactions with the public sector. The Personal Number will consist of nine digits and will be granted to each individual. It will not be altered even when a person dies.

According to the draft law, the General Secretariat for Information Systems will be responsible for the processing and maintenance of the Personal Number register; the latter will only include only a handful of essential data for each person.