Prospects of the ICT sector in Greece

Study of the ICT sector in Greece: Current Situation and Future Trends
Deliverable 14: Prospects of the ICT sector in Greece-policy implications
One of the basic barriers for the sector’s growth is the limited broadband diffusion and the
rather low quality of the relevant infrastructures. Improving infrastructures is a basic
precondition for further growth, as it allows for more attractive, and at a reasonable price,
services, which can attract broader categories of the population and the firms. Within this
framework, a seemingly more aggressive effort from the public policy’s side for broadband
expansion and increased public and private investments in infrastructures especially by firms
from the telecommunication sector, create some positive expectations for the future.
Besides, the sector’s growth is benefited by the technological convergence between IT and
Telecommunications and the innovative value added services that are created, based on
advanced infrastructures. The triple play services are the result of this convergence. IPTV
services, video on demand, VoIP (for firms), and integrated solutions for B2B and B2C are
some the new product / services created that may attract broader categories of users and
expand the ICT use in the country.
Firms’ beliefs about their sector are also moderate optimistic, since field research and
business and consumers’ surveys show an improved economic climate. At the same time, the
poor outcomes of the past fiscal years seem to be overcome, providing greater liquidity to the
various subsectors. Furthermore, projections for 2006 and 2007 show an increase in the
turnover, despite the small recession in 2005. Thus, the positive prospects for the expansion
of ICT market can be reflected at their financial data in the next couple of years. Therefore,
employment and investments at the sector (especially in the telecommunications) are
estimated to increase at the short term basis, while firms report that they intend to intensify
their efforts for greater differentiation, specialization, and focus on niche markets. Moreover,
some restructuring actions have been taken, in order to rationalize the sector’s structure,
while the increased interest from foreign investors indicates that there are some good
business opportunities in the domestic market. At the same time, the sector gradually
accumulates know-how and experience, by implementing large scaled and innovative ICT
projects. This is a competitive advantage that should be further exploited at the international
level and especially in the neighbouring countries.
In the same context, apart from know-how and experience assets, human capital constitutes
another significant advantage in the sector’s effort for growth. There are good and welleducated
scientists, engineers and managers in the sector and the relevant labour market,
while also the new graduates are adequately prepared. However, there is a missing link
between firms and universities concerning their familiarization with market conditions and its
requirements. The reinforcement and the extension of their collaboration in more areas seem
necessary and is gradually cultivated.
To sum up, the preconditions for the verification of the positive expectations are:
The increase of public and private investments on broadband infrastructures. This will
increase the competition in telecommunications and consequently in the IT market
October 2006
Observatory for the Greek IS 6