2020 Cyprus Country Report

Telecom
operators are
being faced
with unprecedented
challenges
in 2020 due to the Covid pandemic,
which brought an everincreasing
demand for data
communications for remote
working – and Cyta’s network
is coping extremely well. We
continue to introduce new
products and services, such
as cloud, 5G and IoT services,
as well as high-value video
content in the local market.
Internationally, we leverage
on our strategic geographical
position and extensive
optical submarine and satellite
networks to strengthen our
role as a regional wholesale
provider of connectivity, serving
other telecom operators and
providers in the greater Middle
Eastern region and beyond.
Costas Psillides
Manager, International
Wholesale Market - Cytaglobal
With digital
transformation
now more
urgent, Epic
provides a
state-of-theart
mobile network enhancing
the consumer’s experience. Our
investments on our network to
be ready for all future customer
needs have been fruitful, as
the simultaneous distinctions
by top organisations Ookla
and Umlaut prove. Beyond the
achievement of being the #1
mobile network in Cyprus, we
are also working towards the
implementation of a privatelyowned
fibre optic network for
households that will deliver
unbelievably fast bandwidth
and a unique experience but
will also upgrade the country’s
infrastructure as a whole.
Thanos Chronopoulos
CEO - Epic
Cyprus will draft a new broadband plan which
will include projects on infrastructure development,
information and awareness raising, digital
skills and entrepreneurship, and security as well
as projects for increasing the demand for ultrafast
connections – an area in which the country has
been lagging behind its EU peers.
In addition, Cyprus has secured EU structural
funds for the deployment of step-change technology,
for the roll-out of Fibre-To-The-Home
(FTTH) networks. By the end of 2020, FTTH
networks are expected to extend to every private
residence. Also, over 30 Cypriot communities
have received EU funding to cover the cost of installing
Wi-Fi hotspots in public spaces, including
town halls, public libraries, museums, public
parks or squares. The WiFi4EU initiative is part
of the ambitious overhaul of EU telecoms rules,
including new measures to meet Europeans’
growing connectivity needs and to boost Europe’s
competitiveness.
Competition among various operators has resulted
in a good offering of high-speed broadband
access services throughout the island. However,
according to the European Commission, prices
for mobile broadband in Cyprus are more expensive
than the EU average.
State-owned operator Cyta continues to dominate
the market offering a full range of telecommunications
services. Following a government
decision, Cyta is now required to denationalise
its business to transform it into a more flexible
and competitive telecoms firm, which presents
an opportunity for foreign investors. The guidelines
demand the company explore all options to
achieve the end goal, whether it be through selling
shares, creating privately owned subsidiaries or to
privatise through a strategic partner or investor.
The second largest operator is Epic, formerly
MTN which was rebranded after a Monaco
Telecom S.A. buy-out for €260 million in 2018.
Other key players with a prominent role in the
telecoms landscape are PrimeTel and Cablenet, a
subsidiary of Maltese Go Plc which has increased
its profits and expanded its customer base over
the last year.
THE ERA OF 5G
Cyprus operators are constantly updating and
evolving their networks and are currently updating
their investment plans to embrace 5G infrastructure
along with other European nations.
Preparations for official 5G licensing have begun
and are expected to finish in 2020, a goal set by
the EU. Cyprus is set to allocate 5G frequency
platforms to the top four bidders before the end
of the year while authorities see 5G going live in
2021.
Telecom companies Cyta, Epic, and PrimeTel
have been licensed to run pilot 5G programs.
The 5G network will not replace the existing 4G
technology but complement it, and is expected
to have 10 to 100 times higher data transmission
rates than today’s networks, 1,000 times more
data volume, five times lower network delay, optimised
battery life of connected devices and significantly
improved geographical coverage. These
advanced next-generation services are poised
to radically change all aspects of daily life, from
work to healthcare, and to the development of
smart cities and homes.
However, just like in other countries many
in Cyprus have raised concerns over health risks
connected with 5G systems and there has been
some resistance to these developments. The state
Electronic Communications Department has
reassured the public that their health is not in
danger from antennas to be installed, and argued
that the more antennas, the lower the electromagnetic
fields will be. The Deputy Ministry of
Innovation is also currently preparing a campaign
to inform people on what 5G really is and
what changes it may bring about. The government
has urged people to weigh the benefits of
the technological advancements, as the reduction
in latency will mean a more reliable network.
Besides public resistance, another potential
challenge that could delay 5G implementation
in Cyprus is the international controversy surrounding
Chinese telecom giant Huawei, and
the US sanctions against the Chinese company.
At the moment more than 90% of local consumers
in Cyprus are served in one way or another
by Huawei products. The Chinese tech giant has
a 10-year presence in Cyprus and has developed
extensive partnerships with all telecom providers
in the country to provide high-level IT and
communications services – and is currently the
only company which produces equipment for all
stages of implementing 5G technologies by using
existing 4G equipment.
SATELLITE COMMUNICATIONS
Cyprus offers optimal conditions for satellite
communications thanks to its ideal climate and
access to the geostationary arc from the Atlantic
to the Indian Ocean. Due to its strategic geographical
position in the most south-eastern part
of Europe, Cyprus can also ‘see’ satellites located
above Asia and Australia and gather data where
other European ground stations have no communication.
This has resulted in multimillion investments
into Cyprus from satellite companies,
which has supported the creation of an extensive
and growing satellite network, as well as teleport
sites and major satellite earth stations, to supple-
Sector Profile
Country Report CYPRUS 2020 133