Optical fibers: OTE, Vodafone, Nova agreement for volume discounts is in effect

The fiber to the home and business (FTTH) volume discount agreement between OTE, Vodafone and Nova is coming into effect immediately, amid expectations that it will help increase service penetration.

According to information, Vodafone and Nova have signed a commercial agreement with OTE, which establishes a system of mutual discounts of up to 28% between the providers on wholesale prices with connection volume commitments, and remains to be signed between them as well.

It has been previously approved by the European Commission and the National Telecommunications and Posts Commission (EETT). The EU has recognized that volume discounts can be a positive step towards faster FTTH deployment, while it is expected to boost digital infrastructure and connectivity, benefiting both consumers and businesses.

It is estimated that the telecommunication providers will accelerate their commercial efforts in the areas where OTE has built a FTTH network (which are most of them), while in combination the effort to increase the penetration of fast internet connection speeds will be helped by both relevant actions of Ministry of Digital Governance, with a total budget of 200 million euros.

These are the Smart Readiness which has come into force and which will subsidize around 120,000 buildings to get ultra-high speeds through the installation of optical fiber and the Gigabit Voucher which will premiere in November. With the Gigabit Voucher approximately 400,000 subscribers will be subsidized via a voucher to connect at a speed of over 250 Mbps.

Also based on market estimates the volume discount agreement between existing providers will not favor the use of PPC’s FTTH network by Vodafone and Nova.