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Fixed Telephony Providers Eye Profits

The market of fixed telephony enters the phase of maturity, as the large investments in network development have been completed and providers expect to record profits soon. 

Companies have been strengthening their position in broadband services and LLUs (regulatory process of allowing telecommunications operators to use connections from the telephone exchange to the customers premises) against Hellenic Telecoms Organization (OTE), however they have not managed yet to become profitable. 

Forthnet recorded losses of €24.7mn in 2010, slightly increased compare with 2009, while Hellas Online is also expected to report negative results. However, the administrations of both companies expect that they could reverse into profitability by 2012. 

OTE hopes to stem the negative trends recording in the final quarter of 2010, which reported a loss of €91.7mn, compared to losses of €29mn in the corresponding period of 2009. 

Despite the financial crisis and its impact on growth, telecommunications operators reported better results than estimated, mainly due to the economical pricing in comparison with OTE, whose pricing policy is bound by the Hellenic Telecommunications and Post Commission. 

Forthnet maintained last year’s first position in LLU services, with an estimated total market share of 32.6%, while Hellas Online’s share is at 28.4%. Cyta’s subscribers in 2010 increased to 124,000 from 52,300 in 2009, while On Telecoms’ subscribers decreased to 124,000 from 128,000.
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