October 1999

Cyprus Update Memo

The following report outlines new developments in the past three months and the state of on-going developments.

The following document summarizes the current developments in the plans of the Electricity Authority of Cyprus (E.A.C.) for the enhancement of their alternative network. As mentioned in the Master Report, no other public utility organization is currently involved in the development or usage of an alternative telecommunications network.

1. Historical Background

The Electricity Authority of Cyprus is currently the only Public Utility Organization which has developed and is using an alternative communication network. The said system makes use of the Power Line Carrier network which carries information by using fiber optics communication links through the use of mainly its overhead and secondly its underground network ; and underground pilot networks. The Cyprus telecommunications Authority positioned itself in a sympathetic way towards the alternative network of the E.A.C,, even though no cooperation in this particular field has been reported.

2. Current Developments

According to the management of the E.A.C., it is the Authority’s decision to expand its alternative network, focusing on fiber optics technology, and towards this end, engineering teams have been working in designing and constructing additional parts of it.

The underlying objectives of the said network would be to :

• Exploit a safe method of communication to be used by the Authority’s Control Center in Nicosia (the capital of Cyprus), in order to transmit signals and to receive data from Power Stations and Substations throughout Cyprus ;
• Utilize the newest and fastest communications technology available ;
• Use this network for telephony, telemetry, e-mail, Internet, and other plausible applications ;
• Create a network which would be efficient enough to be able to compete with other telecommunication networks anticipated to be developed by competitive organizations following the inevitable deregulation and liberalization of the telecommunications market ;

The envisioned alternative network comprises 3 phases, as follows :

• Phase 1 : Fiber optics are integrated in transmission lines (overhead and underground) which already form part of E.A.C.’s network ;
• Phase 2 : Fiber optics are to be integrated to all new transmission lines to be constructed. Phase 2 has already been approved by the Authority’s board of directors ;
• Phase 3 : Fiber optics are to be integrated in existing and in new lines in such a way that an internal communication network is created. This network would interconnect the Authority’s head office, the area offices and the power stations so that the communication between each other is made possible. This network would be expandable so that at a later stage, is able to provide communications services to a much larger clientele.

In line with the above-mentioned objectives, the Authority has fully integrated fiber optic cables in 9 existing high voltage transmission lines, their total length being 140 Km. Furthermore, the integration of fiber optics cables in the remaining 3 high voltage transmission lines (of a total length of 82 Km) is currently being implemented.

Phase 2 is scheduled to be completed within the next 3 years, with a total length of fiber optics cable of 105 km being integrated in new transmission lines. Subsequently, the network would be in a position to face the competition emerging from the anticipated deregulation of the market.