GREECE: An Introduction to TMT

Introduction  

The year 2022 was marked by the end of the enhanced surveillance of the Greek economy. In recent years the Greek economy has shown signs of recovery, and most analysts do not foresee a recession in 2023 – despite the signs of significant deceleration – with the EU Commission forecasting growth of 1%.

The recovery of the Greek economy in 2022 may act as a shield in 2023. Indicatively, in comparison with the same quarter of 2021, according to the Hellenic Statistical Authority, in Q3 2022 the TMT sector showed growth, with increases of 9.1% in publishing services; 42.2% in production of films, videos, and television programmes; 45.1% in television programming activities; 3.5% in electronic communication services; 3% in IT services; and 32.3% in data processing and information services.

The impact of the economic sanctions against Russia and the energy crisis have affected both the EU and the Greek economy, with inflation being higher than initially estimated. Nevertheless, direct foreign investment in the technology sector has more than tripled in the last two years and now accounts for approximately 3% of the country’s total GDP, with several TMT projects well under way.

Technology 

The wide use of digital technologies, such as artificial intelligence (AI), blockchain, big data, edge computing and the internet of things (IoT) has increased the need for advanced cybersecurity and data protection and has created new legal requirements. Greece sees new technologies as an opportunity for further development and is already in the process of embedding new technologies into its national strategy.

Existing information, communication and technology (ICT) services are expected to further develop and companies that already provide ICT services, such as internet service providers, will probably see an increase in demand for their services. Additionally, new ICT services and technologies, which are likely to be introduced, will further drive the growth of the TMT sector and will help meet the growing demands for better communication, entertainment, and digital transformation.

Digitalisation 

With a considerable acceleration of its digital transformation (still rapidly underway), Greece has already entered into a new era. The 2020–2025 “Digital Transformation Bible” includes 455 projects for a more digitalised future (with more than 140 projects being already in progress in cybersecurity, connectivity, AI, etc), and is supported by Greece’s Recovery and Resilience Plan amounting to EUR30.5 billion. Overall, Greece’s digital infrastructure and economy present a positive outlook for continued growth and development.

Data centres/cloud technology  

International companies such as Amazon, Microsoft, Digital Reality and Google have already made investments in the sector and have set the stage for Greece to become a tech hub for the wider region of Southern Europe, North Africa and the Middle East. Further investments for additional infrastructure (eg, fibre optics, submarine cables and data centres) and energy (eg, renewable energy sources projects) are expected, as a result of such investments.

Telemedicine and E-health  

The pandemic has amplified end-user telemedicine services.

Healthcare providers are developing and presenting innovative remote digital medical services, such as virtual/digital clinics for direct medical advice, as well as medical treatments that are delivered electronically, with the use of applications and/or other digital platforms (eg, electronic prescriptions). An important programme for the expansion of the existing National Telemedicine Network is currently under development.

Personal data protection and cybersecurity are matters of primary concern leading to increased attention from all stakeholders.

Green investments – energy  

The use of renewable energy in the technology sector is likely to become a major trend in the coming years, as tech companies aim to decrease their environmental footprint, by promoting “net zero” target investments and increasing the financing of green projects.

With data centres’ projected electricity demand accounting for 3.2% of the EU total by 2030, the abundance of renewable solar and wind energy is attracting global technology companies to further invest in Greece. Co-operation between mobile network operators or other technology companies (eg, cloud service providers) and companies in the energy sector is increasing, with a focus on investing mainly in renewable energy sources. This could include – inter alia – collaborations to build 5G networks and other infrastructure (eg, data centres) that would support clean energy and digital services.

Artificial intelligence  

AI, robotics and similar technologies are giving rise to legal developments and policy discussions as more and more technology companies develop or use AI systems. With the entry into force of Law 4961/2022, a basic framework for the use of AI technologies by the private and public sector in Greece is now set. Compatibility with general principles and (national and international) legislation, such as the European Convention on Human Rights or the EU’s General Data Protection Regulation, is in any case necessary for the operation of AI systems.

Media 

As regards audiovisual media services, an important amendment has recently been implemented, which repeals the old provisions that prohibited pay-TV networks from investing in free-to-air television.

Free-to-air television  

The free-to-air television industry is currently undergoing a period of significant change, as new players enter the market and existing ones reorganise their operations. These developments are expected to increase competition and bring new opportunities for growth in the sector. It is noted that the deadline for the licensing procedure for the providers of free-to-air digital terrestrial broadband television, both non-news national content providers and regional content providers (general informative content and non-news content), was further extended until the end of June 2023.

Pay TV  

Competition in the pay-TV field is gradually rising as the rapid spread of over-the-top (OTT) media content platforms is increasing. Traditional pay-TV providers are also offering their content to consumers via the internet on any device and at any location, without decoders or minimum engagement. Furthermore, new international competitors are providing their services in Greece, either directly or in co-operation with local players. The market is also affected by the merger of two important players in the sector, altering the landscape and creating new opportunities for growth and competition.

As pay-TV services grow, so does piracy. Despite new legislation passed in Greece for the effective prevention of pay-TV content piracy, further developments and proper enforcement of the legislation by the competent authorities is still expected.

Radio 

A new company has been founded by a number of large media groups which aims to modernise radio services in Greece. The company will provide, amongst other things, radio transmission over the internet and plans to exploit the use of new transmission technologies such as DAB, DAB+, 5G and multiplatform radios.

On another note, the issue of radio station licensing still remains unresolved.

Electronic Communications (Telecommunications) and Networks

New activities and new players in the electronic communications market

The merger of two of the four main providers in the Greek market could be seen as a precursor to further changes. With the merger having been completed, a converged operation in fixed and mobile communication and pay-TV services has been created and has considerably changed the electronic communications market. A new market equilibrium has been created and more M&A deals should not be excluded.

The expansion of satellite internet has initiated further development and initiatives in the field of electronic communications. The entry of new infrastructure developers may lead to further investment by incumbents and co-operation with current or new participants.

Fifth-generation (5G) networks  

The deployment of 5G is gradually taking place, with the expansion of the network being already ahead of schedule. Some providers have already achieved the preliminary network deployment and population coverage targets.

Fibre optics  

Fibre optics development for the achievement of ultra-fast broadband internet is still largely ongoing. Fibre optics installation is being further developed with the support of EU recovery funds. The use of the currently existing infrastructure is expected to expand such development. Discussions regarding access rights and the further streamlining and expediting of the relevant procedures at the administrative level will continue.

Legislative and policy developments 

Directives 2019/770/EU “regarding contracts for the supply of digital content and digital services” and 2019/771/EU “on certain aspects concerning contracts for the sale of goods” have been transposed into Greek law, modernising the relevant legislation to better address the requirements of e-commerce and the digital era.

The Greek Law 4961/2022 establishes a coherent legislative framework for the use of emerging technologies, such as AI, IoT, distributed ledger technology (DLT) and smart contracts in the private and public sector.

EU legislation directly affecting the TMT sector, such as the Digital Services Act (Regulation 2022/2065/EU) and the new Network and Information Security Directive (NIS 2) (Directive 2022/2555/EU), has already been adopted at EU level and its application is expected to begin in the coming years.

The EU is also preparing and/or discussing proposals such as the Digital Markets Act, the AI Regulation and the ePrivacy Regulation.