Demand for broadband access in Greece

Abstract

As broadband access networks are relatively new in Greece, it is really difficult and involves great risk to determine the potential market for broadband services. The intent of this paper is to add to the discussion of delivering fixed broadband lines to customers in Greece taking into account regulation issues, the strategic movements of the market key players and the commonly admitted inequality of broadband access availability between urban and rural areas. In addition, using time-series analysis and examining the correlations between the number of fixed broadband lines and specific demographic factors for the past three years (mid 2006 – mid 2009), an attempt to estimate empirically the forthcoming demand for broadband lines is conducted. Population’s income and effective competition are recognized as the strongest determinants of broadband development. In addition, it yields that demand for broadband will continue to have a positive trend for the years to come as people are becoming more and more familiar with new technologies, with youth being the pioneer to the use of innovative services that require broadband access.