Prime Minister Kyriakos Mitsotakis takes part in a meeting on 5G networks

“The topic of today’s meeting is substantive but also bears great symbolic significance. It is a step towards the digital future of our country and it takes place exactly one day following the auction of the frequencies for 5G networks,” Prime Minister Kyriakos Mitsotakis said during his meeting with senior executives of Deutsche Telekom Group and OTE (Hellenic Telecommunications Organisation) on 5G telecommunications’ networks, which was held at Maximos Mansion.

“It happened within merely a year”

“This is a process that generated some 372 million euros for the state coffers”, the Prime Minister pointed out. “It was completed within twelve months. It required many prior actions, which took place in the midst of the pandemic. And thus the state, businesses and citizens all gain access to the new capabilities that only high technology can offer. The auction was done transparently and with sagaciousness. Almost the entire spectrum of available frequencies was auctioned, but a part was withheld, so that it can be offered to universities, start-ups and creative centers free of charge. In other words, the facilitation of everyday life and economic activity is combined with a boost in innovation and entrepreneurship. Also of major importance is the fact that 25% of the fees that 5G providers will have to pay will be directed to the Faistos Fund, a newly-created fund which will finance start-ups specializing in applications and services based on new networks. We want to establish an ecosystem around 5G in our country. I believe that we have the minds and the talent required to serve this cause”.

“The country’s digital transformation is a key priority of mine”

Kyriakos Mitsotakis also stressed that: “This digital transformation of the country is my two main priorities. It also fits very well with the ambitions put forward by the Recovery Fund. The Minister has been very keen on submitting proposals that can be funded by the Recovery Fund. And we also have now for the first time what we call the Digital Bible, which is essentially all the big infrastructure projects that will allow us to move forward with the digitization of state and society. Interestingly enough, the pandemic has demonstrated that you can actually work from anywhere. This is an important proposition for the country. We want to encourage more people to come to Greece, not just to visit Greece but to work from Greece. But in order to be able to do that we need powerful networks to ensure connectivity. So, this is doubly important, not just for the Greek population. But we do want to turn Greece into a destination for people to work from, for people to retire. And in this overall plan connectivity plays an absolutely crucial role. And we demonstrated that in spite of the constraints of the current system we have also been able to deliver those services to all Greeks who actually required them”.

The participants held the first 5G-supported video call in Greece, as COSMOTE officially announced today the commercial launch of its 5G network.

On his part, Deutsche Telekom Group CEO Tim Höttges said: “5G enables a new way of connecting things. And therefore it is important. The first networks in Europe were in Germany, in Austria and now -number 3- Greece. So, I would like to thank you because you were very fast in the auction process of the spectrum, which is for us the real estate on which we are building our houses. Without the real estate we cannot have 5G. So, the spectrum is very important”.

“Deutsche Telekom invests 17 billion euros on an annual basis and we are investing 600 million only in Greece, into infrastructure, on an annual basis. These are the big numbers. The promise that we are going to make -and we are German engineers- we want to have 50% of the Greek population covered by the end of next year and 100% of all the streets covered within the next two years, so that we are really able to connect this country and bring it up to the forefront of digitization”, he added.

The Prime Minister’s remarks during the meeting

“I am very happy to welcome you today to the Maximos Mansion. The topic of today’s meeting is substantive but also bears great symbolic significance. It is a step towards the digital future of our country and it takes place exactly one day following the auction of the frequencies for 5G networks.

This is a process that generated some 372 million euros for the state coffers. It was completed within twelve months. It required many prior actions, which took place in the midst of the pandemic. And thus the state, businesses and citizens all gain access to the new capabilities that only high technology can offer.

The auction was done transparently and with sagaciousness. Almost the entire spectrum of available frequencies was auctioned, but a part was withheld, so that it can be offered to universities, start-ups and creative centres free of charge. In other words, the facilitation of everyday life and economic activity is combined with a boost in innovation and entrepreneurship.

Also of major importance is the fact that 25% of the fees that 5G providers will have to pay will be directed to the Faistos Fund, a newly-created fund which will finance start-ups specializing in applications and services based on new networks. We want to establish an ecosystem around 5G in our country. I believe that we have the minds and the talent required to serve this cause.

I am looking forward with great interest to your own announcements and how fast you will be activating your 5G network. And I think it is high time to start explaining to our citizens, the users of these services, how much their lives can change with the greatly increased connection speed that 5G can offer. And of course, how this network can open new doors to services, which cannot be supported with the existing networks, such as advanced telemedicine services, which are also so timely given the Covid-19 pandemic”.

I said a few things about the auction process. I would like to repeat how excited we are to have you here in Greece, to reiterate how quickly the Ministry went ahead to the auction process, in spite of the difficulties that are obviously due to the Covid pandemic.
We are happy that you continue to support the Greek business with significant investment. I am very eager to hear how you plan to move forward, especially with 5G services that I understand you are ready to initiate.

I am very excited that you are moving so quickly. We want the vibrant, competitive 5G ecosystem. And what I can tell you is that this digital transformation of the country is one of my two main priorities. It also fits very well with the ambitions put forward by the Recovery Fund.

The Minister has been very keen on submitting proposals that can be funded by the Recovery Fund. And we now also have for the first time what we call the Digital Bible, which is essentially all the big infrastructure projects that will allow us to move forward with the digitization of state and society. Interestingly enough, the pandemic has demonstrated that you can actually work from anywhere. This is an important proposition for the country. We want to encourage more people to come to Greece, not just to visit Greece but to work from Greece. But in order to be able to do that we need powerful networks to ensure connectivity. So, this is doubly important, not just for the Greek population. But we do want to turn Greece into a destination for people to work from, for people to retire. And in this overall plan connectivity plays an absolutely crucial role. And we demonstrated that in spite of the constraints of the current system we have also been able to deliver digital services to all Greeks who actually required them.

Just one example: we currently have all our classrooms in digital format, 100,000 classrooms a day. And we know that digital education in the future will go hand in hand with real education. But in order to deliver the best possible experience we need networks, we need speed, we need some of the capacities that will be offered from the new technology.

Minister of State and Digital Governance Kyriakos Pierrakakis said: “The auction of 5G frequencies in our country was completed yesterday, before the end of the year, just like we said it would when this government first assumed power. As of today, Greece has entered the era of the 5th generation networks. Along with the Prime Minister we already had the opportunity to make the first 5G call and see that the network is already operational. This is a historic moment that will bring about so many opportunities for our country in the years to come. It can create many thousands of new jobs and generate substantial added value for the Greek economy”.

OTE Group Chairman and CEO Michael Tsamaz stated: “5G technology shall really change our lives. It will facilitate our lives. It will change the way in which we work together, have fun, spend our time. COSMOTE and OTE are both committed to proceeding with our investment plan as quickly as possible, so as to cover at least 50% of our country’s population by the end of 2021. Of course, from that point on, we will continue until we have reached 95% to 99% within the coming years. This is very important for the future of this country”.

Vote of confidence on the country’s prospects

The great interest that the 5G auction attracted from telecommunications operators, a process that proved a complete success, constitutes a strong vote of confidence on the country’s prospects.

This auction was the final step before Greece’s entry into the 5G era. Overall, the offer sheet exceeded 372 million euros, thus fully justifying the auction’s design, which for the first time in Greece included all available radio frequencies.

From the beginning the aim of this strategy was to maximize state revenues while also creating growth prospects around 5G networks for business and research activities. This is the capstone of an intensive effort which started over 12 months before the start of the auction and featured more than 70 prior actions.

The terms and conditions of the licenses granted stipulate that the service providers must offer 5G access to at least 60% of the population by the end of 2023, rising to 94% over the next six years. The government’s strategy for inclusion and the balanced development of infrastructure ensures that there will be at least one 5G operator in 42 remote areas, both at the country’s borders and the mainland.

Innovation and the establishment of the Faistos Fund

The auction included worldwide novelties, since some frequencies were withheld so that they can be offered for free to innovative start-ups that take advantage of 5G technology, as well as research centers and academic institutions.

At the same time, the investment fund Faistos is being established, thanks to the proceeds from the auction. The revenues are thus invested for market growth, which is not the case in any other country, enabling even startups to offer services that will be of direct interest to the Greek audience, capable of producing added value.

The meeting was also attended by Minister of State and Digital Governance Kyriakos Pierrakakis, Deputy Minister to the Prime Minister, Responsible for the Coordination of the Government Work Akis Skertsos, Secretary-General to the Prime Minister Grigoris Dimitriadis, Secretary-General of Telecommunications and Postal Services Athanassios Staveris-Polykalas and chief economic adviser to the Prime Minister, Alexis Patelis.

On behalf of COSMOTE the meeting was attended by Deutsche Telekom AG CEO Timotheus Höttges, Deutsche Telekom head for Europe Dominique Leroy, OTE Chairman and CEO Michael Tsamaz, the head for Legal and Regulatory Affairs, Wolfgang Kopf, and Legal and Regulatory Affairs Officer Eirini Nikolaidi.