OTE S.A. Business Model Canvas

OTE S.A. maintains crucial partnerships with government and regulatory bodies, which are fundamental for its operations. These collaborations are key to securing necessary licenses and spectrum allocation, enabling OTE to provide its telecommunications services. For instance, in 2024, OTE's ongoing commitment to national digital transformation initiatives was evident through its active participation in projects aligned with Greece's digital agenda.

These partnerships also facilitate OTE's alignment with national broadband plans. The company's significant investments in fiber-to-the-home (FTTH) infrastructure directly support these national objectives. OTE benefits from government programs designed to accelerate broadband adoption, such as the Gigabit Voucher scheme, which incentivizes consumers to upgrade to faster internet connections.

• Regulatory Compliance: Essential for obtaining and maintaining operating licenses and spectrum rights.
• National Broadband Initiatives: Active participation in government-led digital transformation and connectivity programs.
• Infrastructure Development: Alignment with national broadband plans, fostering widespread FTTH deployment.
• Funding and Incentives: Leveraging programs like the Gigabit Voucher to drive customer adoption of advanced services.

OTE S.A. strategically collaborates with digital service and platform partners to extend its reach beyond traditional telecommunications. These alliances are crucial for developing and offering a wider array of 'beyond core' services, enriching the customer experience and fostering loyalty.

By integrating offerings like e-payments, online food delivery, and digital insurance through these partnerships, OTE diversifies its revenue streams and taps into new market segments. For instance, the development of platforms such as Box for food delivery and Payzy for payments exemplifies this strategy, showcasing OTE's commitment to innovation and customer-centric solutions.

• Digital Platform Integration: OTE partners with providers of essential digital services to embed them within its ecosystem.
• Service Diversification: These partnerships enable OTE to offer services beyond connectivity, including e-payments and food delivery.
• Customer Engagement: By providing integrated digital solutions, OTE aims to increase customer stickiness and explore new growth avenues.
• Examples of Partnerships: Platforms like Box (food delivery) and Payzy (payments) highlight OTE's successful expansion into adjacent digital markets.

OTE S.A.'s ownership of telecommunications licenses and mobile spectrum rights is a cornerstone of its business model, legally underpinning its fixed and mobile network operations. These regulatory assets are indispensable for providing essential connectivity services and pursuing network enhancements in the Greek market.

These licenses are not merely permissions; they represent exclusive rights to utilize specific radio frequencies and operate telecommunications services, directly impacting OTE's competitive advantage and revenue generation potential. Without them, OTE could not offer mobile voice and data services, nor operate its fixed-line infrastructure.

As of the latest available data, OTE, through its subsidiary COSMOTE, holds significant spectrum holdings across various frequency bands, crucial for delivering high-speed mobile broadband and 5G services. For instance, in the 2023 spectrum auction, Hellenic Telecommunications Organization (OTE) secured additional 3.5 GHz spectrum, vital for 5G deployment. This strategic acquisition reinforces its position in the evolving mobile landscape.

• Telecommunications Licenses: OTE possesses all necessary licenses to operate fixed-line, mobile, and broadband services in Greece, ensuring legal compliance and market access.
• Mobile Spectrum Rights: OTE holds extensive spectrum rights across key frequency bands, enabling the provision of advanced mobile services, including 4G and 5G.
• Regulatory Compliance: Adherence to the Hellenic Telecommunications and Post Commission (EETT) regulations and licensing requirements is a fundamental operational necessity.
• Spectrum Portfolio: OTE's spectrum assets are continuously evaluated and updated to support network evolution and service innovation, reflecting significant investment in future capabilities.

OTE's financial capital and investment capacity are crucial for its operations. The company requires substantial financial resources to continuously invest in network upgrades, technological advancements, and strategic acquisitions. This financial strength enables OTE to fund its ambitious FTTH and 5G rollout plans, thereby maintaining its market leadership.

OTE has demonstrated its commitment to future growth through significant investment announcements. Specifically, the company has declared investments exceeding €3 billion by 2027. This substantial capital allocation underscores OTE's strategy to enhance its infrastructure and service offerings.

• Network Modernization: Funding for the ongoing expansion of Fiber-to-the-Home (FTTH) networks.
• Technological Advancement: Investment in the rollout and enhancement of 5G technology.
• Strategic Growth: Capital allocated for potential acquisitions and strategic partnerships.
• Future Commitments: Over €3 billion slated for investment by 2027.

OTE S.A. actively fosters customer loyalty through a multifaceted approach. This includes tailored loyalty programs and a suite of value-added services designed to retain subscribers, especially within their mobile and bundled service offerings. These efforts are crucial for deepening customer engagement within the OTE ecosystem.

The company employs a 'more-for-more' strategy in its mobile segment, a tactic that has historically driven sustained growth by offering enhanced benefits for increased commitment. This approach incentivizes customers to remain with OTE and explore additional services.

Examples of OTE's customer relationship strategies include:

• Exclusive discounts and early access to new products for loyal customers.
• Bundled service packages offering greater value and convenience.
• Personalized offers and rewards based on customer usage patterns.
• Value-added services such as enhanced technical support or content subscriptions.

OTE actively cultivates its customer relationships through robust community engagement and digital education platforms. A prime example is COSMOTE Grow Your Business, an initiative offering vital resources and training to Small and Medium Enterprises (SMEs) focused on digital transformation.

This program not only fosters goodwill but also firmly positions OTE as a thought leader in the digital space. By empowering customers to effectively leverage technology, OTE strengthens its bond with them and encourages deeper engagement with its services.

• COSMOTE Grow Your Business: Provides digital transformation education for SMEs.
• Thought Leadership: Establishes OTE as an expert in digital solutions.
• Customer Empowerment: Helps businesses utilize technology effectively.
• Goodwill Generation: Builds positive relationships through valuable support.

Wholesale Operators are key partners for OTE S.A., comprising other telecommunications providers in Greece and internationally. These entities utilize OTE's robust network infrastructure, including its extensive fiber optic and mobile networks, to deliver their own services to end-users. This symbiotic relationship is crucial for expanding market reach and service availability.

The reliance on OTE's infrastructure is evident in the growing wholesale volumes, particularly with competitors increasingly depending on OTE's Fiber-to-the-Home (FTTH) deployments. This trend underscores the strategic importance of OTE's network investments for the broader Greek telecommunications landscape.

• Access to Infrastructure: Competitors leverage OTE's fiber optic and mobile networks.
• Service Delivery: Enables other operators to offer their services to customers.
• Roaming Agreements: Facilitates mobile connectivity for customers of other providers.
• Growing Wholesale Volumes: Demonstrates increasing reliance on OTE's FTTH infrastructure by competitors.

This segment includes visitors and international travelers who need mobile communication services while in Greece. They typically access these services via roaming agreements with their home mobile providers or by purchasing local prepaid SIM cards upon arrival. Cosmote's extensive mobile network coverage is crucial for serving this mobile and often temporary customer base.

In 2024, Greece continued to be a popular tourist destination, with projections indicating a significant influx of international visitors. For instance, the Hellenic Statistical Authority (ELSTAT) reported over 32 million tourist arrivals in 2023, a figure expected to see continued growth in 2024. This translates to a substantial market for international roaming users and tourists seeking reliable connectivity.

• High Demand: Tourists and international visitors require seamless mobile connectivity for navigation, communication, and accessing information during their stay.
• Roaming Revenue: International roaming services, often generating higher per-minute or per-gigabyte rates, contribute significantly to operator revenue.
• Prepaid SIM Adoption: Many tourists opt for local prepaid SIM cards for cost-effectiveness and ease of use, presenting an opportunity for Cosmote to capture this market share.
• Network Reach: Cosmote's commitment to expanding its 4G and 5G network coverage, particularly in tourist hotspots and remote islands, is vital for meeting the connectivity needs of this segment.

OTE S.A. generates revenue through usage-based charges, encompassing services like out-of-bundle mobile data and international calls. Premium SMS services also contribute to this segment. This reflects a flexible pricing model that captures incremental customer consumption.

Furthermore, OTE actively monetizes value-added services, notably its digital food delivery platform, Box, and its e-payment solution, Payzy. The company has demonstrated significant growth and strategic focus on these adjacent digital offerings, expanding its revenue base beyond traditional telecommunications.

• Usage-Based Revenue: Captures income from customers exceeding their standard plan allowances for data, calls, and messaging.
• Value-Added Services: Monetizes digital platforms like Box (food delivery) and Payzy (e-payments).
• Growth in Adjacent Services: OTE's strategic investments in Box and Payzy are driving diversification and new revenue streams.
• Customer Engagement: These services enhance customer stickiness and offer additional touchpoints for monetization.

OTE S.A.'s wholesale services are a significant revenue generator, stemming from providing access to its robust network infrastructure, including mobile and fixed-line capabilities, to other telecommunication providers. This includes revenue from roaming agreements, allowing customers of other networks to use OTE’s infrastructure when traveling, and other essential wholesale telecommunication services.

This revenue stream effectively monetizes OTE's substantial network investments by enabling competitors to leverage its established assets. The growth in wholesale volumes is particularly notable, driven by strategic wholesale agreements, such as those related to Fiber-to-the-Home (FTTH) deployments. For instance, in 2024, OTE continued to expand its FTTH network, creating further opportunities for wholesale access and revenue generation from these advanced infrastructure services.

• Network Infrastructure Access: Revenue from allowing other operators to use OTE's fixed and mobile network assets.
• Roaming Services: Income generated from agreements that permit customers of other carriers to utilize OTE's network while abroad.
• Wholesale Agreements: Increased volumes and revenue are being realized through new partnerships, especially those focused on FTTH wholesale access.
• Monetization of Assets: This stream represents OTE's strategy to earn from its extensive network infrastructure by offering services to other market participants.