Hellenic Telecommunications Organisation S.A., OTE Group is the largest technology company in Greece. It is one of the three largest companies listed in the Athens Stock Exchange, according to market capitalization.
|Traded as||Athex: HTO|
|Headquarters||Marousi, Athens, Greece|
|Michael Tsamaz (Chairman)|
|Revenue||€3.857 billion (2017)|
|€174.5 million (2017)|
|Total assets||€7.102 billion (2017)|
|Total equity||€2.589 billion (2017)|
Number of employees
|Website||OTE Group website|
OTE Group offers the full range of telecommunications services: from fixed-line and mobile telephony, broadband services, to pay television and integrated Information and Communications Technology (ICT) solutions. At the same time, the Group is involved in a range of activities, notably satellite communications, real-estate and professional training. Formerly a state-owned monopoly, OTE's privatisation started in 1996 and is now listed on the Athens and London Stock Exchanges.
Today, OTE Group employs about 13,000 people in Greece and approximately 20,000 in total. Since July 2009 Deutsche Telekom is the largest shareholder of the company.
- 1 Shareholding structure
- 2 Subsidiaries
- 3 Financial data
- 4 History
- 5 Telecommunications Infrastructure
- 6 Sustainable growth
- 7 OTE Telecoms Museum
- 8 References
- 9 External links
Starting in 1996, the Greek State gradually decreased its participation in OTE’s share capital. Following an agreement between the Greek State and Deutsche Telekom, as of 5 November 2008 each party held 25% plus one share of OTE’s share capital. Following a further sale of shares and voting rights, as of 11 July 2011 Deutsche Telekom’s stake in OTE has risen to 40% while that of the Greek State amounts to 10%. Hellenic Republic Asset Development Fund (HDRAF) announced on February 13, 2018 the opening of a tender procedure for the acquisition of 5% by the Greek state. The competition ended on Friday, March 16, 2018, with no interested parties. On the same day, HDRAF sent a letter to Deutsche Telekom with a proposal to buy back the shares for €284 million, with a 30-day deadline. Deutsche Telekom exercised its right of first refusal and the acquisition was completed in May 2018 through the Stock Exchange. Deutsche Telekom currently holds 45% of the company's shares and the Greek State owns 5%.
- COSMOTE (100%): Mobile telecommunications services provider.
- OTEGlobe (100%): International carrier with presence in SE Europe and a subsidiary of OTE Group. Through its extensive, reliable European network, the company provides a wide range of integrated international voice and data services to telecommunication providers and large multinational organizations in Greece and abroad. Expanding its international network infrastructure to Asia through its participation in submarine cable joint ventures (most recently Asia-Africa-Europe 1) and through partnerships with established international providers, OTEGlobe is emerging as a trusted Mediterranean hub, connecting Europe with the rest of the world.
- OTESat-Maritel (94.1%): Satellite services for maritime communications. It is one of the four major providers of Inmarsat maritime satellite communication services in the world.
- CosmoOne (61.7%): B2B (Business to business) electronic commerce applications and services – the largest provider in Greece.
- OTEAcademy (100%): Education and advanced vocational training.
- OTE Estate (100%): management of OTE Group’s real estate assets.
- OTE Insurance Αgency S.A. OTE Insurance Company, a solely owned subsidiary of OTE since 1997, specialized in private insurance. It provides its services to OTE Group, its Human Resources, as well as to the general public.
- COSMOTE e-value (100%): Active since 1999 in providing integrated Contact Center services, it is leading the industry.
- GERMANOS (100%): GERMANOS is the largest retail network in Greece and one of the strongest and most established brands. It is a one stop shop for technology products and telecommunications services.
- Also owns 11888 and its own telephone directory.
Telekom Romania: OTE owns 54% of the share capital of Telekom Romania, the main telecommunications operator in Romania, providing integrated fixed-line services (voice, broadband, data and leased lines) and satellite TV services to the local market.
For 2018, the Group reported turnover of €3.798.7 million. Adjusted EBITDA profit reached at €1.316.8 million and EBITDA margin increased by 0.6 points to 34.7%. Adjusted free cash flow (FCF) increased significantly to €344.7 million. The Group's adjusted net debt remained at € 0.7 billion, equivalent to 0.6 times the annual adjusted EBITDA.
|as % of Revenues||35.5%||36.2%||36.4%||35.0%||34.4%||35.4%||35.%||36.3%||34.4%||33.8%||34.2%||34,7%|
OTE was founded on October 23, 1949 as a successor to the Hellenic Telephone Company (AETE), which was established in 1926, with the aim of consolidating all such public and private telecommunications companies. Formerly, telephony, telegraph, domestic and international connections were fragmented and under-coordinated.
Until 1998, the Greek telecommunications market was a monopoly. The market was opened to competitors and OTE was gradually privatized. Along with other telecommunications market providers, OTE is regulated by the National Telecommunications and Post Commission (EETT).
Following the sale of a further 5% in 2009 and another 10% in 2011 of OTE’s share capital by the Greek state to Deutsche Telekom, the state holds 10% and Deutsche Telekom 40%. In 2018, Deutsche Telekom acquired an additional 5% of OTE as it exercised the right of first refusal to acquire 24,507,520 ordinary shares as announced by HDRAF.
- 23 October 1949: ΟΤΕ S.A. is founded (Legislative Decree 1049/49)
- The first Greek telephone directory is published.
- The TELEX service becomes operational.
- The Greek long-distance telephone network is automated.
- Laying of the submarine cable Greece-Italy MED 3 is completed.
- The first antenna of the Centre of Satellite Communication in Thermopylae (the 6th in Europe) is set up.
- The first fully digitised switching centres (long-distance and hub) of the EWSD/SIEMENS system are established.
- ΟΤΕ expands to the Balkans, SE Europe and the Middle East.
- ΟΤΕ is listed in the Athens Stock Exchange (ASE).
- OTE is listed on the New York Stock Exchange (NYSE).
- OTE acquires an initial 35% stake in RomTelecom, the incumbent telephony company in Romania.
- Acquires GSM License in Bulgaria and establishes Globul to exploit this license.
- Satellite Hellas Sat2 is launched from Cape Canaveral.
- OTE launches ADSL services in the Greek market.
- OTE and COSMOTE act as Grand National Sponsors of the Athens 2004 Olympic Games.
- OTE signs agreement to sell 90% of its holdings in ArmenTel (Armenia) for approximately €342 million.
- The Greek State sells 10.7% of OTE share capital to institutional investors.
- OTE makes available new speeds reaching 24Mbit/s.
- OTE launches CONN-X TV (IPTV) to a limited number of existing clients for a trial period. This satellite TV was the predecessor of OTE TV.
- OTE's broadband connection reach 970,000, with presence points in its network extend to 1,390, nationwide.
- The agreement between the Greek Government and Deutsche Telekom is signed, according to which, since November 5, each will own 25% plus one share of OTE's share capital.
- OTE acquires 100% of COSMOTE and its share is listed on the Athens Stock Exchange.
- COSMOTE now owns 100% of GERMANOS SA, the leading retailer of telecommunications in the wider region of Southeast Europe.
- Completion of the sale of COSMOFON in the former Yugoslav Republic of Macedonia held by COSMOTE.
- After the sale of an additional 5% of the Greek State's shares and voting rights, Deutsche Telekom's stake in OTE stands at 30% while the Greek State holds 20%. COSMOTE completes acquisition of Telemobil S.A. (Zapp) in Romania.
- OTE introduces Conn-x TV, which is based on IPTV technology.
- Michael Tsamaz, CEO of OTE Group’s mobile arm COSMOTE, assumes the position of OTE President & CEO.
- OTE delists from the New York Stock Exchange (NYSE).
- Deutsche Telekom acquires an extra 10% of OTE share capital raising its stake to 40%.
- The company signs three-year Collective Labour Agreement with the Federation of OTE Employees OME-OTE, achieving personnel costs reduction and securing employment for OTE regular employees.
- Introduces OTE TV via Satellite and integrates all of the pay TV services it offers under the brand name OTE TV.
- OTE signs agreement for the sale of the minority stake in Telecom Srbija (Serbia), of which owns 20%, for about €400 million.
- Launches reduced prices of up to 25% for Double Play Unlimited Plans that combine Internet and unlimited telephony to fixed lines.
- OTE TV subscriber base reaches 100.000, following the continuous strengthening of the platform with new channels, services and HD content.
- Launches new VDSL Internet services, with speeds up to 50 Mbit/s.
- Successfully completes two Voluntary Redundancy Schemes, the incentives of which 1,516 people in the company accepted.
- Raises €700 million through 5-year fixed coupon notes, following the successful completion of a bookbuilding process.
- Announces the signing of an agreement to sell its 99.05% stake in Hellas Sat, to Arabsat, for 208 million euros, plus 7 million in dividends.
- Announces the signing of an agreement to sell its 100% stake in Cosmo Bulgaria Mobile EAD (Globul) and Germanos Telecom Bulgaria (Germanos) to Telenor, the Norwegian telecom operator. The agreement consideration reached €717 million (enterprise value).
- OTE announced the expansion of its VDSL network with 367 local exchanges and 2,732 outdoor cabins activated in October and extending VDSL availability to 1.3 million households and businesses.
- On 26 October 2015 it establishes COSMOTE as a single brand for all its products and services.
- In 2017, OTE's management announced that priority is to develop fiber optic networks and that total investment for the period until 2020 will amount to € 1.5 billion.
- COSMOTE presents its new key message, “a better world, for all” as well as its commitment to contribute to a better world for all with the help of technology.
- OTE Group announces an investment plan of €2 billion by 2022, mainly for new generation infrastructure and networks.
- OTE Group launches to the market its new Fiber To The Home (FTTH) architecture network for high speeds of 100 & 200Mbps, upgradable to 1 Gbps.
- COSMOTE is undertaking the development of a fifth generation (5G) pilot network in the Municipality of Zografos, in the framework of a Memorandum of Understanding between the General Secretary of Telecommunications and Post Office and the Mayor of Zografos.
- COSMOTE implements the first 5G pilot network in Greece, achieving live speeds above 12Gbps.
- OTE Group successfully secures €400 million from international markets for the issuance of a four-year bond. The issue is overhauled about 5 times, with the coupon eventually forming at 2.375% per annum, the lowest that OTE Group has issued in the last decade.
- OTE SA announces the adoption of a new medium-term Remuneration Policy for Shareholders.
- OTE completes the sale of the entire stake in Telekom Albania Sh.A. to Albania Telecom Invest AD, for a total price of €50m.
- Deutsche Telekom acquires an additional 5% of OTE's share capital, increasing its stake to 45%.
- The Group's branch network in Greece consists of 299 GERMANOS stores and 133 COSMOTE stores.
OTE Group invests heavily in New Generation Networks, creating infrastructure which will boost the Greek economy and create growth potential. It is the largest investor in new technologies and infrastructure in Greece, having invested over €2bn over the past six years. OTE Group implements a €2 bn. investment plan until 2022, to offer even higher speeds and wider coverage in fixed and mobile telephony.
Thanks to these investments, COSMOTE Fiber is the largest fiber optic network in Greece, with a route length of 43,000 km. By the end of 2018, the number of households and businesses with access to very high Internet speeds of up to 200Mbps exceeded 3 million. In 2018 OTE Group brought the unlimited capabilities of fiber optics at home, by launching its Fiber to the Home (FTTH) network in selected areas.
In mobile telephony too, OTE Group breaks new ground by constantly developing its networks. It is by far the No1 in Greece in terms of population coverage, with its 4G and 4G+ LTE Advanced technology network, reaching 98% and 95% respectively. At the same time, the Group is intensively preparing for the next generation of wireless communication, the 5G. From 2015, it has contributed to the design and development of new 5G technologies, infrastructure and services, with its dynamic participation in European research projects, while COSMOTE has implemented the first trial network of 5G in the Municipality of Zografos in Attica, achieving live speeds above 12Gbps, 60 times higher than today's 4G speeds.
OTE Group exploits the power of technology in order to create a better world for all. Sustainable growth is an integral part of the Group's business strategy and the sustainable growth principles are integrated into its operation, through which it contributes to the economy, the society and the environment.
In 2018, Group’s social contribution amounted to approximately €4 million. The focus of its activities was the development of digital skills for people of all ages, as well as meeting society’s core needs by supporting vulnerable social groups, children, education, entrepreneurship, local communities, culture and sports.
OTE Telecoms MuseumEdit
The OTE Museum of Telecommunications opened up to the public in 1990. It is housed in a 1000 m2 privately owned OTE building, in the district of New Kifissia – Athens. The purpose of the Museum is the research, study and documentation of historical data pertaining to the evolution of telecommunications from ancient times to the present day. The Museum is a member of The International Committee for the Conservation of the Industrial Heritage (T.I.C.C.I.H.).
- "FY 2017 Statements". OTE.
- OTE Group Timeline
- Telecom.com, «EU Commission gives approval without any conditions to Deutsche Telekom’s investment in the Greek telecommunications group OTE», 10.02.2008.
- Reuters, «Greece to sell 5 pct OTE stake to Deutsche Telekom», 18.06.2009
- Reuters, «Greece sells 10 percent OTE stake to Deutsche Telekom», 06.06.2011.
- The Economist, “Deutsche Telekom to take another 5% stake in Greece’s OTE”, 22.03.2018.
- NEWSBOMB, "Reduced prices of up to 25% for two Double Play Plans", 10.05.2012. (in Greek)
- TELECOMPAPER, "ΟΤΕ TV passes 100,000 subscribers mark", 15.10.2012.
- Techblog, "OTE VDSL, High-speed internet speeds up to 50Mbps", 26.11.2012 (in Greek)
- Ekathimerini.com, "OTE Saving 80 million from voluntary redundancy”, 07.01.2013
- Naftemporiki, "OTE: 700 million euro issue of bonds completed", 30.01.2013 (in Greek)
- FE Investegate, "OTE: Agreement for the sale of Hellas Sat", 107.02.2013.
- TeleGeography, “OTE, Cosmote expand VDSL, LTE networks”, 15.07.2014
- Liberal.gr, "M. Tsamaz: Raising the bar for 2017 - OTE's three strategic goals", 04.09.2017 (in Greek)
- Global Sustain, "The first 5G trial network in Greece by COSMOTE" 10.12.2018.
- OTE Group, 2018 Sustainability Report