10. COMMUNICATIONS INFRASTRUCTURE AND NETWORKS
10.1. COMMUNICATIONS INFRASTRUCTURE AND NETWORKS: THE BACKBONE OF THE INFORMATION SOCIETY
The national communications infrastructure. The national information and communication infrastructure is the backbone of the Information Society. In its broadest sense it comprises wired, wireless, satellite telecommunications, computer networks, transmission and switching systems, digital television, a wide range of terminal equipment as well as software services and applications, databases, electronic files and digital libraries. This infrastructure enables fast, friendly and low-cost storage, retrieval, handling and processing of digitised information in the form of voice, data, and video.
The constituent parts of a national communications infrastructure should aim at a comprehensive service platform contributing to the development of economy and society. For firms, the communication networks and new technologies are tools for modernisation and competitiveness. For the citizen, they are a medium for better access to all kinds of information and improvement of the quality of life. For society, they offer new methods of communication and social dialogue, enhancement of democracy and reduction of social and geographical discriminations. For our country as a whole, they offer the ability to promote and further national views and interests, safeguard our cultural heritage and identity, and keep close contact with Greeks living abroad.
Communications policy. The development of the basic telecommunications infrastructure in Greece was in the past undertaken through public funds in the framework of the investment plans of the public telecom operator OTE. The evolution of technology and the liberalisation of telecommunications imply that the future development of the telecommunications infrastructure (basic telephony infrastructure, added value services, mobile telephony, Internet access) will be achieved with both public and private sector investments. This will be achieved with the help of a regulatory framework that favours free competition and thus operates as an incentive for the delivery of better services at lower cost.
The objective is to create the conditions that are necessary for the widespread provision of advanced telecommunication services at a reasonable cost. To obtain this goal, the government pursues a telecommunications policy with multiple goals, the most important being:
* Completion of the liberalisation process in the telecommunications sector and harmonisation of the institutional framework with that of the other European Union countries,
* Provision of universal service and support of the development of new integrated services,
* Further development of telecommunication infrastructures with an emphasis on infrastructures enabling the provision of broadband services, particularly in remote areas and islands of the country,
* Development of national networks and interconnections with the relevant international ones.
Regulatory framework. The further development of the infrastructure depends on the investment plans of OTE and of the new companies involved in the provision of telecommunication services. A decisive factor for the level of domestic and foreign investment is the completion of the legislative and regulatory framework and its adaptation to the new technological environment and the conditions of the liberalised market.
| The telecommunications infrastructure in Greece today |
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Telecommunications infrastructure in Greece today presents the following picture. Basic telephony services are offered through OTE's network to 5.4 million subscribers with analogue and digital switching systems. The digitisation of the OTE network (switching and transmission systems) has accelerated and exceeded 70% at the end of 1998.
Mobile telephony services (voice, fax, and modem at low transmission speeds) are offered by the companies Panafon, Telestet and Cosmote to approximately 1.800.000 subscribers; the market has an annual growth rate of 80% and mobile telephony is one of the fastest growing sectors of the Greek economy. It is estimated that by 2001 users of mobile services will exceed 3 million.
In the area of Internet services provision, there are a number of providers, with the largest market shares held by Forthnet, OTEnet, Hellas-on-Line and Compulink.
In satellite communications, Greece participates in the satellite organisations INTELSAT, EUTELSAT and has also promoted mobile maritime satellite communications through INMARSAT given the large Greek shipping market. | |
The qualitative and quantitative assessment of infrastructure requirements presupposes information and actions from both the public and the private sector and therefore requires co-operation between public entities, organisations, private companies, and professional and local authorities. Government policy attempts to ensure that actions complement one another, with optimal use of resources, in a competition-friendly environment.
As a large user and provider of information services, the state (public administration, public services, and local government) will continue to play an important role in the development of the infrastructure. By selecting modern ways of communication and transaction with citizens and firms, it demonstrates the necessity of adopting new approaches and diffuses new communication methods, such as electronic mail, electronic payments, and electronic commerce.
The geopolitical role of Greece in the development of telecommunications. The development of a safe, reliable, and flexible telecommunication infrastructure with an adequate capacity will connect national networks to the international information highways and give Greece the ability to play its role as the only European Union member-state in south-eastern Europe. The coverage of neighbouring areas by Greek satellite transmitters can lead to closer co-operation with the Balkan states. Government support of telecommunications and information technology co-operation in the broader geographical area encourages new initiatives and at the same time promotes peace and co-operation.
10.2. RAPID DEVELOPMENTS IN TELECOMMUNICATION SERVICES
An environment of technological convergence. Telecommunication services in the future will be different from what we know now. Digital technology allows today the provision by the same network of conventional and new services of higher capacity as well as the use of terminals combining uses such as telephone, television and personal computer.
| Trends in infrastructure development |
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Full and complete dominance of digital technologies.
Development of intelligent systems with the appropriate software.
Dominant position of European standards in world mobile telecommunications.
Considerable development of terminal satellite systems (mobile satellite communications and satellite TV)
Dynamic growth of Internet as a predominant way for the transmission of information and as a common communication network in our society.
Recognition of cryptography technologies as the essential tool for security and trust on the Internet.
Increased requirements for broadband applications and network development.
Significant developments in television and in content distribution and management technologies.
Significant changes and developments in the provision of market services with new roles for service providers.
Production of packages combining entertainment, mobile and stationary telephony by different suppliers. | |
The combination of market liberalisation with the convergence of technologies will give users the ability to select both their preferred complete package and the service provider, irrespective of the technology used and contrary to the current situation which is defined by networks of a specific technology.
New business entities. As the range of possibilities and applications increases, it will no longer be possible for traditional telecommunication operators or for other basic information providers to offer the entire range of services to users. International developments show that in order to increase the range of facilities and services provided to the user, strategic alliances will be established between different entities in the information industry. Such alliances and relations will define the new business entities in the Information Society.
New services, a new regulatory environment. In the new, liberalised telecommunications environment the role and function of public telecommunication operators and regulatory authorities are changing. On an international scale, many telecommunication operators are starting to specialise in specific categories of services and applications through arrangements with other suppliers such as information providers. At the same time, in the context of the changing relation between content transmission services and content provision services, governments are reviewing the regulatory framework and the principles governing licensing, access and use of infrastructures and offered services.
10.3. BASIC PRINCIPLES IN DEVELOPING A NATIONAL TELECOMMUNICATIONS INFRASTRUCTURE
Access to networks and information. Users and those wishing to provide services should have access to networks and to information. For achieving this goal, specific regulatory and technological guidelines (e.g. establishment of standards) need to be promoted nationally and internationally.
Promoting competition. Promoting and protecting competition is of decisive importance for infrastructure development, especially in an environment of technological convergence. For this it is necessary to elaborate specific rules for terminal equipment, software operating systems and transmission networks. Given that the structure and the characteristics of the market are dynamic and rapidly changing, such measures must be constantly monitored and adjusted. Protective measures are necessary in interconnection, numbering, spectrum management, licensing, interoperability.
| OTE's investment plan |
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The investment plan of the public telecoms operator OTE amounts to more than one trillion drachmas for the period 1997-2001, and will play a decisive role in the development of the telecommunication infrastructure for the Information Society.
In the context of this investment plan, the optical fibres in the backbone of the public telecommunications network, already exceeding 12.900 kilometres will have reached 17.000 km by the end of 2000 covering almost the entire country. The percentage of digitisation of branch exchanges already exceeds 60% and will rise to above 95% in 2000, while OTE's access network is also being digitised.
Network digitisation and the increase in its capacity will allow the provision of services based on digital technology, such as ISDN (Integrated Services Digital Network), the simple and cost-effective advanced telecommunication platform for video, voice, audio and data transmission through a single copper wire. Through ISDN OTE already provides teleconference, tele-medicine, tele-education and teleworking services.
For the provision of broad band services, OTE is proceeding with the introduction of ATM (Asynchronous Transfer Mode) technology, through the installation of transmission and access nodes in the larger cities. ATM technology allows the customer to use each time the connection rate required and to be charged depending on the capacity used, the time spent, and the quality requested. The system makes available high connection speeds (rates) and saves money since the user pays exactly for the capacity used and not the cost of a permanent, high speed connection. At the same time it offers flexibility since it accommodates more customers in the network. | |
* Interconnection. Interconnection is important in a competitive market because it secures communication from any point of a network to any other point of another network and safeguards the right of all newcomers to be connected to the existing networks. Networks should be interconnected with transparent and non-discriminatory access to scarce resources. In the European Union, free access is defined by the concept of open network provision, which seeks to ensure open access to public telecommunication networks and services, in accordance with harmonised conditions. Harmonisation regards network interfaces, conditions of use and the principles of cost-oriented billing, and is based on the principles of objectivity and non-discrimination.
* Numbering and addressing. The development of communication infrastructure involves implementation of a scheme for the number management and their portability. The portability of a number allows the customer to retain his/her number when changing network providers and encourages competition.
The process of convergence introduces also the similar issue of addressing. In the context of electronic commerce, this issue is associated with the assignment and management of domain names, and leads to authentication and encoding issues. Numbering requires co-operation on a European scale, while addressing has an international dimension due to the universal character of Internet.
* Spectrum management. Spectrum and radio frequencies are a scarce national resource and are of special importance for the communication infrastructure especially in wireless (earth and satellite) communications. In many countries spectrum use capability is granted for a fixed or periodic fee. For ensuring pan-European operation, common frequency bands have been defined for all member states for mobile and satellite communication systems.
In Greece, there is a phenomenon of extensive illegal use of the frequency spectrum, creating problems to users, risks to safety, while depriving the state of revenue from the exploitation of a scarce national resource. The government is committed to taking measures for a more efficient and safe spectrum management.
* Licensing. Licensing specifies the technical conditions (essential requirements) and public interest conditions that an entity requesting a licence for service provision should meet. As infrastructures grow and the environment matures, entry conditions should be simplified. The National Telecommunications Committee is working towards this end.
* Interoperability. The interoperability of services and the adoption of standards by providers, both on a national and on an international level, maximise networking possibilities. Consensus should be encouraged in the definition of the appropriate standards, and Greece participates in discussions in the framework of European and international initiatives in this direction. At the same time, private sector activities as well as intellectual property rights on proprietary standards need to be protected in order to encourage innovation and development.
Free access to networks and information and the promotion of competition conditions are the basic principles for the development of the national communication infrastructure.
10.4. TELECOMMUNICATIONS LIBERALISATION
Positive consequences. The result of the liberalisation of telecommunications on an international scale is the provision of better telecommunication services at lower prices for firms and consumers. At the same time, given the large share of the telecommunications sector in national economies, liberalisation has also led to higher investments, productivity and employment in many other sectors. With respect to employment in particular, international comparisons show that more jobs have been created in countries with liberalised telecoms environments than in those with monopolistic environments.
All countries in the European Union have gradually proceeded with the liberalisation of telecommunications services. Greece has participated in this procedure and has been granted an extension until 31.12.2000 for abrogating the exclusive rights assigned to OTE for the provision of voice telephony services and the installation of public telecommunication network for the provision of voice telephony. Under the existing institutional framework, the following services have been liberalised:
* Data transmission (e.g. Internet),
* Provision of mobile and personal communications
* Provision of stationary satellite communications
* Provision of voice services to closed groups of users and virtual private networks,
* The use of alternative networks for the provision of liberalised telecommunication services.
Completing the institutional framework. Completing the institutional framework by incorporating relevant EU Directives into Greek Law and introducing the necessary additional legislative and regulatory acts is a government priority. The completed institutional framework will encourage the development of telecommunications as well as new investment activities in alternative networks, other infrastructures and the provision of new or conventional services. A clear formulation and supervision of competition rules and implementation measures is necessary. This creates a climate of confidence in the market as regards the intentions of the law-maker, and the rights and obligations of the organisations and companies involved in the new telecoms environment.
The course towards full liberalisation requires the presence and operation of an independent and strong regulatory authority that supervises the policy mapped by the Ministry of Transport and Communications and the enforcement of its effective application. In this context, the government will further support the independence of the National Telecommunications Commission so as to promote its effective operation.
| The National Telecommunications Commission
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The National Telecommunications Commission (EET) represents the regulatory authority in the telecoms sector. It has been given important decision-making powers in the areas of licensing, supervision of compliance with the stipulations of the law governing telecommunications service provision, and power of an advisory nature for a number of cases. EET also mediates in the settlement of disputes between interested companies, users and/or the state, and can arbitrate settlement of disputes.
The EET is called upon to contribute to the formulation and establishment of a satisfactory regulatory framework, capable of promoting the smooth operation and development of a competitive telecommunications market in Greece. | |
Market liberalisation and competition require also the correction of historic telecommunication tariff imbalances as well as transparency in billing. Tariff re-balancing involves reductions in for international and long-distance rates and an increase of local rates. The tariff policy should be cost-oriented. With the assistance of cost accounting systems, OTE will be in a position to provide information and justify the costing base of its tariff policy.
Policy priorities. For the completion of the institutional framework, policy priorities for 1999 are:
* Supervision of network access based on the open network provision framework adapted to the status of gradually liberalised telecommunications, in order to ensure that there is no abuse of OTE's monopoly position
* Supervision of equitable treatment of all telecommunication service providers by public administration
* Acceleration of licensing procedures in the framework of EU directives that achieve a balance between the requirements of telecommunication operators and the public interest,
* Provisions on interconnection based on transparency, objectivity, non- discrimination and creation of multiple nodes all over Greece. Interconnection billing should be cost-oriented, taking international practice into consideration. The authority and jurisdiction of the National Telecommunications Commission in negotiation procedures for interconnection and the settlement of disputes will be clarified.
* Specification of numbering procedures and number portability, in the context of gradual liberalisation, by the National Telecommunications Commission.
* Settlement of pending licensing issues for satellite communications, based on EU directives, in the framework of telecommunication service licensing,
| The Communications Forum |
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The Communications Forum was established on 11 February 1998 on the initiative of the Ministry of Transport and Communications in the context of formulating a complete national initiative for telecommunications. It operates with the participation of most actors who influence the course towards the Information Society (telecommunication service providers, telecommunication equipment and IT product manufacturers, the Association of Greek Industries, higher education establishments, research centres, representatives of the social partners (the General Confederation of Workers, Technical Chamber of Greece, Consumer Associations, etc.).
It is a forum for the expression of views on the elaboration of a flexible action plan and strategies in the area of telecommunications, aiming at the study of technological developments in telecommunications, the formulation of proposals for the institutional framework, and public awareness.
The Forum's action plan proposes and prioritises options with the perspective of the emergence of the new digital economy and society. These are elaborated by a scientific committee whose deliverables are the assessment of requirements in telecommunication infrastructure and the necessary resources.
In order to promote public dialogue as a creative element for the preparation of the country for the Information Society, the Forum organised a meeting in March and a two-day convention in May 1998 during which proposals were submitted by work groups and the views of other countries were presented. | |
* Clarification of the terms for the installation of public services for data (Internet) and installation of public terminals, etc. in public spaces.
Alternative networks. Finally, in the framework of telecom liberalisation, the medium-term operation of alternative networks is of particular importance. Alternative networks are all telecommunication infrastructures except the network of the public telecom operator with monopoly rights (OTE).
The development of alternative networks will promote the adaptation to the international competitive environment, while enabling certain public utilities to diversify their strategy and target new business activities with benefits for the consumer as a result of the strengthening of competition.
Important alternative networks could be created in Greece from the existing networks of the Public Power Corporation, the Greek Railways Organisation, the Public Gas Corporation, and other entities. Such networks, until the onset of full liberalisation, may be used for the provision of voice, data and video services. As an indication, in Europe 11 large railways organisations have already agreed, in the framework of the HERMES program, to integrate and upgrade their telecommunication networks in order to provide uniform transborder broadband services at rates up to 155 Mbit/sec.
The government is committed to establishing the institutional framework so that the development of such alternative networks can be made without wasting public funds, on the basis of business plans and with profitability criteria.
In the context of telecoms liberalisation, the government gives priority to the completion of the institutional and regulatory framework and to the promotion and supervision of a competitive market environment.
10.5. PROVISION OF UNIVERSAL SERVICE
For Greece, universal service is an integral part of the policy for regional development and the participation of all citizens in the Information Society where access to information is a right.
The evolving content of universal service. Universal service has a dual role: social (as a means for avoiding exclusion) and developmental (assisting the development process). It is defined as a set of services of specified quality, available to all users irrespective of geographical location or other restrictive factors (e.g. individuals with special needs) and, in the light of the special national circumstances as applicable, economically affordable.
The content of universal service is dynamically defined as infrastructures continuously evolve. In this light, both the EU and international organisations such as the OECD accord particular importance to the content and the dynamic meaning of universal service and maintain that it is the first step towards the development of the Information Society.
Universal service is offered today by OTE and its content is focused mainly on voice telephony through a fixed connection, allowing also low speed fax and data transmission. Operator and emergency services, directory assistance, public phones are included; such services are to be available for people with special needs as well.
With the evolution of technology and the market and with the change in user requirements, universal service may be modified in order to comprise:
* subsidising telecom services for economically weaker social groups,
* the possibility of connecting schools, libraries, health centres and Hospitals to the Internet at special prices.
In many countries particular emphasis is given on the costing and financing of universal service in a liberalised market, since its development is expected to influence significantly basic activities such as education and/or vocational training. As a basic principle, it is necessary to provide information relevant to cost, prices, and quality.
The costing of universal service necessitates the accurate and objective determination of the cost of services that are not economically viable, given that the manner of its financing will be determined on the basis of such calculations. The cost is calculated on the basis of net cost, i.e. as the difference between the operating cost of an organisation with universal service obligations and the relevant operation without this obligation. The calculation should be made separately for each service, geographical area, special groups and individuals with special needs, and be based on procedures ensuring objectivity, transparency, non-discrimination and proportionality.
Those liable to contribute to the cost of universal service are the entities providing public telecommunication networks and/or publicly available voice telephony. Under the EU directive on open network provision, two ways of financing universal service are proposed: the establishment of an independent universal service fund on a national level and the payment of an additional fee by those connected to the network.
In both cases, a prerequisite is the certification of cost by the National Telecommunications Commission. In the case of the establishment of an independent fund, this is managed by an independent entity responsible for collecting the contributions by the liable parties and making the relevant payments.
| The institutional framework for the liberalisation of telecommunications in Greece
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The institutional framework for liberalisation of telecommunications networks and services is:
Law 2246/94 that liberalises the provision of telecommunication services with the exception of voice telephony, incorporating EEC Directives 90/387 and 90/388.
Law 2578/98 under which as of 1.10.1997 there is liberalisation of the alternative infrastructures via which liberalised services are provided. Such infrastructures are the telecommunication networks installed by the telecommunication service provider, networks provided by third parties, and common use networks.
In order to supplement or amend the institutional framework regulatory and administrative acts have been issued. As regards the liberalisation of telecommunication services:
Satellite Communications. Presidential Decree 212/97 (Official Gazette 166'A), Ministerial Decision 61647/98 (Official Gazette 505'B) under which EC Directive 94/46 is incorporated in national legislation and satellite communications with the exception of voice telephony.
Mobile and Personal Communications. Presidential Decree 124/9898 (Official Gazette 103'A) under which EC Directive 96/2 is incorporated and the provision of mobile and personal communications is liberalised.
Provision of deregulated telecommunication services via cable infrastructure. PD 123/98 (Official Gazette 103'A) under which EC Directive 95/51 was harmonised and cable infrastructure is used for the provision of liberalised services.
Leased lines: PD 40/96 (Official Gazette 27'A) and 121/98 (Official Gazette 505'B) under which EC Directive 92/44, relevant to the harmonisation of prerequisites for open access and use of leased lines is incorporated. The above Directive is amended by EC Directive 97/51 for the purpose of adapting to the competitive environment the harmonised prerequisites for open access and use of leased lines. This Directive also amends EEC Directive 90/387 and is not harmonised.
Telecommunication terminal equipment: PD 424/95 (Official Gazette 246'A), Ministerial Decision 96 under which EC Directive 91/263 was harmonised, PD 122/98 (Official Gazette 103'A) under which EC Directive 93/97 was harmonised supplementing Directive 91/263 regarding the equipment of earth satellite stations. Directive 95/47 on the use of standards for television signal transmission concerning the establishment of a common video format for wide screen transmission 16:9, is not harmonised. Directive 98/13 on connected telecommunication equipment and mutual certification recognition which concerns the harmonisation of trading conditions of terminal equipment and earth satellite station equipment, is not harmonised.
Licensing. Law 2465/97. Partial harmonisation of EC Directive 97/13 specifying the procedures for provision and telecommunication service licensing and the terms accompanying such licences, comprising installation and/or operation licences for telecommunication networks required for the provision of such services. Harmonisation of the remaining provisions of the Directive is required.
Interconnection. EC Directive 97/33 on the harmonisation of the conditions of open and effective interconnection and access to public telecommunication networks and public telecommunication services; not harmonised.
Voice telephony/universal service. EC Directive 98/10 on the availability of stationary public telephone services and the determination of all telecommunication services in the framework of universal service. Voice telephony provision remains an OTE exclusive right until 31.12.2000. | |