Processes in telcos for doubling the speeds in the fixed internet

Of Costa Ketsietzis

Negotiations are underway between OTE and the other providers, under the supervision of the National Telecommunications and Post Commission (EETT) in order to find a formula that will allow doubling the speeds of all fixed broadband connections in the country.

The reason for this negotiation was the initiative of OTE to upgrade at no additional cost, the fixed internet speeds that Cosmote subscribers currently have in areas where fiber optics have not yet reached home, where this is technologically possible.

The other providers, who in many cases are also wholesale customers of OTE, which has the largest network, want to follow in this initiative. However, they are calling for an agreement on the cost of upgrading connections.

The problem lies especially in upgrading adsl links that offer download speeds of “up to 24 Mbps” to 50 Mbps vdsl, which require field work.The reasoning of the other providers is that since this work will be done en masse there should be a discount.

This cost amounts, according to information, to about 32 euros per connection and OTE has already sent a proposal for special prices for mass connections. Market sources, however, report to Capital.gr that in order for the country as a whole to have an increase in speeds, there must be a “drastic reduction of prices on the part of OTE”.

The same sources also note that the drastic reduction of costs is the only way to avoid distortion of competition and to give the opportunity to all providers to upgrade the connections of their subscribers.

In fact, some companies have asked EETT to stop approving Cosmote’s programs that are going to double until there is a solution to this issue. To date, about 30% of the approximately 450 programs submitted by OTE have been approved, but the process has already stopped until the new Plenary Session of EETT is appointed, as the term of office of the previous members has expired.

However, speaking to analysts about the results of the fourth quarter, the president and CEO of OTE, Michalis Tsamaz, appeared optimistic that there will be a satisfactory agreement for all parties. “We are gradually getting the approval of the competent regulatory authority for the new fixed contract programs”, Mr. Tsamaz noted, estimating that EETT is not going to “deny the improvement of services at no cost to consumers”.

How the upgrade will take place

Through OTE’s initiative, the nominal speeds are doubled during the year, as each subscriber will be upgraded, completely free of charge, to the next commercially available speed. For example, anyone with VDSL 50 today will be upgraded to VDSL 100. Anyone with a 24-bit program will be upgraded to 50-bit. The same goes for all available packages (24, 50, 100).

The only condition, according to OTE executives, is that this be technologically feasible. For example, if a subscriber has opted for the 50Mbps commercial plan and the phone connection technically gives the maximum available speed of 50Mbps, it will not be possible to upgrade from 50 to 100Mbps.

The upgrade will be done gradually, after receiving the necessary approvals from EETT, as depending on the network technology, different actions are required (in most cases the upgrade is done automatically and remotely, in other cases a router or card needs to be replaced, in others it needs consultation with a technician).

Competent sources note that Cosmote landline customers do not need to take any action, as each customer of the company who has the option of free upgrade will be informed separately.

Within 2022 and after the approval of EETT, new fixed commercial programs with reduced prices are expected to be available, as the goal is in the long run in an area where it is possible to connect at speeds of at least 50 Mbps not to sell 24 Mbps packages.