IT Usage in GREECE

Historical Stimulus for IT growth versus current stimulus

In the late 70's, rumor reached Greece that automation would soon be arriving to the nation through the banking sector. ATM machines, branch-to-branch networking, and 24 hour online information of accounts would become a standard in the sector. By the early 80's, mainframes and sophisticated customized software were established. Greeks are notoriously considered to be status quo individuals who avoid changes in day-to-day operations. However, when they finally realized how productive they became through the use of IT within the banking sector, the floodgates openned and IT usage began to spread.(30)

Although Greece does not presently produce software nor hardware units, it is attempting to introduce a new IT usage in their most profitable industry: Tourism. Close to 80% of Greece's GNP comes from this industry. Greece is host to several tourist attractions such as islands, ancient ruins, and several museums. Presently, the Greek telecom company OTE, is trying to link several key tourist islands through state of the art fiber optic cables providing 70,000 digital lines. OTE manager Vassilis Tsakoniatis states that the new telecoms infrastructure will be coupled with the introduction of a range of new services designed to support the tourism industry.(27)

Another key area where IT usage is making an impact is in the import/export shipping industry. The flow of information from one nation to another must be as fluent as the flow of goods. In an attempt to promote this easy flow of information, OTE and Telecom Italia are close to concluding an agreement concerning the development of a submarine fibre optic cable stretching from the island of Corfu to Otranto. The cable will be manufactured by the Italian company Maristel at a cost of Dr 1.6 billion.(29) The cost will be equally met by the two partners. However, NATO may participate in the project by taking on 30% of the cost. If this test site between Italy and Greece succeeds in making the import and export industry more efficient, the test site will expand to allow other EU nations to participate.(31)

The year 1994 marked the introduction of the "Smartcard" to the Telephone Industry. The smartcard has a small motorola chip inside it which allows the user to make phone calls from a special public phone located anywhere in the country. This phone-card is unique because, unlike its magnetic strip competitor, it cannot be easily damaged and, best of all, any monetary value can be added to the card for continued use. Although this card may not be a major IT introduction, it does indicate that Greece is making an attempt to introduce IT in several differentiated ways.(26)

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Last Update:October 30, 1995

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