The potential agreement between PPC and Vodafone, announced yesterday, is set to reshape the telecoms landscape by creating a structure that will serve as a “formidable rival” to OTE in the provision of wholesale fiber-to-the-home services.
Aiming to shift the balance of power by creating a new hub in the digital infrastructure market, the plan calls for the merger of the two subsidiaries, PPC Fibergrid and Fiber2Al into a joint venture with equal ownership (50-50) and a network of lines that currently reaches 1.65 million households (homes passed) available for immediate connection—that is, “ready for service,” as it is called in telecom terminology.
When the figures for the two groups are combined, the total approaches the scale of OTE. The largest telecommunications provider has nearly 2.1 million connections (end of 2025) and is expected to reach 3.5 million by 2030, a figure close to the target for direct connections to the PPC Fiber Grid, which aims for 3.8 million households and businesses (2028).
In essence, the move is significant not only because the new entity, if it is indeed established, will drive a wedge into the telecommunications sector with the aim of creating a new player—with all that this implies for competition and prices— but also because Vodafone has decided to invest in the Greek market for the first time in many years.
This is because the non-binding term sheet agreed upon by both sides includes a monetary consideration. Precisely because the PPC Fibergrid network is more developed and has reached over 1.1 million households ready for immediate connection, compared to the 550,000 homes and businesses served by Fiber2All (Vodafone Greece), the latter will have to pay a sum of money in addition to the assets. Although neither party has made any announcements, it is estimated that the amount is in the tens of millions and certainly not a three-digit figure.
The final agreement will be preceded by the necessary due diligence between the two sides and the obtaining of the required approvals from the relevant authorities, a process expected to be completed within the coming months.
The network, the customer base, and prices
When asked what this move means for consumers, the answer provided by relevant sources is that the retail divisions of the two groups, now gaining access to a vast wholesale network approaching the scale of OTE, will be able to offer services at prices more attractive than current ones.
The new joint network will have a significant customer base using it, with all that this implies for the commercial policy that the new entity will pursue once it is established.
As for the other question—whether the partnership between the two companies in providing wholesale fiber-optic services could be the start of further expansion of their collaboration—the answer is that no one could rule it out in the future.
At this stage, executives from both groups are focusing on the benefits of this specific collaboration, particularly regarding the development of next-generation networks, strengthening the country’s digital connectivity, and providing faster access to high-speed services for more households and businesses.
In the case of PPC, however, the agreement represents another step in its strategy to expand into telecoms. Since 2023, when FiberGrid was founded, the company—after selling fiber-optic services wholesale—entered the retail market with ultra-high-speed internet, leading to the move to provide an additional (Add-On) of fixed telephony—all while the company has made clear its intention to enter the mobile market as a wholesale service provider.
A telling example is DEI FiberGrid’s participation in EETT’s public consultation regarding the future allocation of spectrum in the 900 MHz and 1,800 MHz bands, a sign that it is interested in entering the wholesale mobile telephony services market as well.
The capabilities of the new shared network
DEI FiberGrid’s 100% fiber-optic (FTTH) network now reaches 1.88 million households (homes passed), of which over 1.1 million are already available for immediate connection (ready for service). Vodafone’s FTTH network coverage exceeds 550,000 homes and businesses (available for immediate connection).
Therefore, according to estimates, if the merger of the two companies ultimately proceeds, a network could be created that, based on current data, would have approximately 1.6 million FTTH lines ready for service. Additionally, in terms of homes passed, total coverage is estimated to reach up to 2.4 million households.
Market sources speak of a very large network that is being developed more cheaply and quickly, increasing overall competition. Furthermore, as reported, PPC entered the telecommunications market with a plan and strategy and is making progressive moves.
The architecture
At the same time, another issue expected to be resolved in the near future concerns the architecture of the shared network. It should be noted that PPC FiberGrid takes a different approach, as its network is laid underground up to the distribution cabinets and then overhead to the end user’s home. The relevant technical details are expected to be clarified through a joint business plan, provided the agreement ultimately moves forward.
The goal of this strategic partnership is to create a new, strong hub in the digital infrastructure market, which will help accelerate the development of fiber-optic networks in the country, meet growing connectivity needs, and achieve national targets for FTTH penetration.
How does the competition view this development?
It is worth noting, of course, that there have recently been reports suggesting that OTE is in negotiations with Nova to acquire the latter’s fixed-line telephony infrastructure network.
When asked about this on the sidelines of the Group’s general meeting, OTE Chairman and CEO Kostas Nembis replied that he had no comment on the matter. However, he added that “since there is something available on the market, we are in a phase where we are trying to expand our coverage. When the opportunity with Terna arose, we purchased the UFBB. If this asset is available, we’ll look at it at some point, but I have nothing else to say.”
On the competitive front, the announcement by PPC and Vodafone Greece did not come as a bolt from the blue, as the possibility of such a move had been among the scenarios discussed in the market for some time.