4.4.2 Licensing

4.4.3 Universal service

• Media : The Cy.B.C. is broadcasting via satellite radio and TV programs in Europe, North Africa, and the Middle East. The satellite used is the SIRIUS II, while the reception frequency is 12 264.52 MHz.

4.4.4 Tariffs policies

• Media : All radio and TV stations must submit to the Cyprus Authority of Radio-television a price list of their advertising and sponsorship rates every semester.
  
  Each TV station sets its own tariffs for advertisements, according to the estimated TV level of viewership of the specific program. However, it is known that these tariffs are only used as general guidelines, and that quite often the actual charges deviate considerably.

• Telecommunications : The Cyprus Telecommunications Authority has submitted a tariff re-balancing study and proposal to the Ministry of Communications and Works. This has been approved by the Ministry as well as the Cyprus Ministerial Council.
  
  The policy approved calls for the gradual adjustment of telecommunications services tariffs in order for the competitiveness of the Authority to be enhanced. The policy includes rises in the rates for national and domestic charges on the one hand, and lowering of rates on mobile phone and international calls.
  
  The rise in rates for local calls will be completed in three stage. The first rise is being implemented as from April 1st 2000, the second is planned for October 1st,2000, while third and final rise will take place on April 1st 2001. With the implementation of the final rise the total increase will amount to just under 400% compared to the initial rates.
  
  Specific measures included in the policy include

  • Gradual increase of connection fees from 14 CYPounds to 30 CYPounds

  • Gradual increase of monthly subscription rate from 1.25CYPounds to 5CYPounds

  • Introduction of an alternative option for subscription of the first line at a monthly subscription rate of 2CYPounds (to be increased up to 2.5CYPounds by April 2001) plus 0.02CYPounds charge for each call

  • Free provision of additional telephone facilities

  • Reduced local call rates from 20.00 hrs until 07.00 hours the next day

  • Gradual increase of the local call rate from 1.3 cents per 4 minutes up to 2cents per 2 minutes for peak hours and 2cents per 4 minutes for non-peak hours.

  • Introduction of a single national call rate by April 2001. Towards this all dial numbers assigned to subscribers would be converted to 7 digit numbers.

Additionally, as part of above mentioned re-balancing policy, CY.T.A. has proceeded to lower its international rates (most destinations) by as much as 50%.

• Proposals on mobile telephone charges suggest:

• Reduction of monthly subscription rates from 10CYPounds to 8CYPounds

• Introduction of charging per second for national calls at 0.1cents per second during peak hours and 0.05 cents per second during non-peak hours.

• Extension of the times for reduced rates in order to align this with that which will apply for fixed line calls as described above.

4.4.5 Quality of service

• Media : All TV stations to be established must comply with the regulations of the International Telecommunications Union (ITU) with regards to their "minimum field strengths for which protection may be sought in planning a television service".
  
  The quality of reception in 50% of the geographical coverage at 50% of the broadcasting time should not be less than 4.5 in the relevant 5 point scale of the ITU.
  
  The quality of the television picture and sound must comply with the recommendation ITU - RBT 500-7 and ITU-R BS 562-3 respectively.
  
  The protection of reception against undesirable signals (noise) should be in accordance to ITU-R BS 655-4 (The radio frequency protection ratios for AM vestigial sideband terrestrial television systems).
  
  If the application for the establishment of a station mentions that the station would supply stereophonic sound, then the station must transmit stereophonic sound.

4.4.6 Interconnection

International connections : Cyprus has increased its direct telephone circuits with telecommunications organizations from 60 to 61, now covering 53 countries as compared to 51 registered during the Summer of 1999. Its direct signaling links have increased from 42 to 47. These serve 228 destination point codes (as against 154) for the purposes of fixed telephony and international roaming for mobile telephony.

At the end of 1999, the total number of telephone circuits stood at 4876, registering an annual increase of 11% (the said number in 1998 stood at 4386, showing an annual increase of 10% as compared to 1997), while the corresponding figure for ISDN circuits rose by 500% from the 1998 figure of 21 to 131.

At the same time, 4 new 2Mbps transit connections were established, taking the total to 148 (an increase of 2.8% compared to 1998). In addition, two VC3 (45 Mbps) transit connections were established between Israel and the USA.

The number of international leased circuits increased by 18.2% in 1999, from 137 to 162. It must also be noted that many existing IPLCs have been upgraded to higher speeds and the new IPLCs are typically of much higher speeds than those of previous years.

CYTAGSM : As far as mobile communications are concerned, CY.T.A. introduced CYTAGSM, a new mobile communications services which eliminates international boundaries in April 1995. CYTAGSM operates through a digital GSM system which provides almost global coverage and a wide range of additional facilities and services. Towards the end of 1999, the introduction of the 1800 MHz band in the major cities of the island, has provided the CYTAGSM network, (which since 1995 had been operating under the 900 MHz band alone), with a tremendous boost in its network capacity.

5.1 Copyright and intellectual property rights

All copyright and intellectual property rights are preserved under the general law 59 of 1976 and 249 of 1977.

5.2 Privacy, data protection, consumer protection

Media : According to the regulations of article 51 of the Radio & TV Stations Laws of 1998 and 1999, the contents of all broadcasted programs are subject to certain rules which aim at securing : the respect towards any person appearing on the screen (or the voice of whom is broadcasted) ; all programs broadcasted would be announced prior to their broadcast and that any programs not suitable for persons under 15 years of age are broadcasted within a specific time zone ; viewers are warned about rated programs (not suitable for persons under a certain age) ; news programs do not show close plans of dead or injured persons, or any scenes which are unsuitable for minors or which may be insulting.

The public may submit a complaint to the Cyprus Authority of Radio-television for injustice in treatment by radio / TV stations in informative / recreational programs ; for the violation of their personal life by broadcasting information about them in such programs ; for the broadcasting of scenes of sex or violence which are in contrast to the relevant laws and regulations.

The Cyprus Authority of Radio-television has the right (by profession) to examine possible violations of laws and regulations by a station, even if no complaint has been filed.

Originally conceptualized in 1987, the Government has established an "Information Systems Strategy", a master plan for the computerization of all ministries, departments and independent offices of the government are communicated to government officers and to potential suppliers of IT goods and services through the production and distribution of two annual documents called "Information Systems Strategy Statement" and "Information Systems Business Plan", and of a regularly issued Executive Progress Report.

The said Information Systems Strategy which was revised and approved by the Computerization Executive Board in 1997 aims at ensuring that the full potential of Information Technology is utilized in an effort to support the policies and objectives of the state. More specifically, the strategy would provide the tools with which ministries and departments may develop and operate information systems to support their own business needs. A very important aspect of the Strategy (and a pre-requisite for the accession of Cyprus to the European Union) is the harmonization of information systems with the relevant EU standards.

The Information Systems Strategy defines a policy framework in three areas : management policies ; technical policies ; and strategic information systems. The latter are the mechanisms for providing core information to the public service. They can be distinguished into : strategic application systems to support key areas for the operation of government services ; and information technology infrastructure systems to provide a common It framework across all state organizations.

Within the overall government Computerization Plan, ministries and departments are expected to create their own Information Systems Strategies, and Implementation Programs. At the lowest level, individual development projects will create their own project plans and system documentation.

A total of 29 million Euros was spent between 1989 and 1997 on the Government’s Information Systems Strategy, while it is estimated that between 1998 and 2001 the expenditure would rise to 64 million Euros.

The Strategy comprises 18 strategic application projects (high priority), and 61 candidate application projects (low priority) which are to be addressed as resources allowed. Of the 18 priority projects, 7 are in full or partial production, and 5 are nearing full development.

In addition, proposals for 2 strategic applications have been submitted and are being evaluated, and the specifications for proposals have been prepared for another 4.

6.1 Umbrella policies

Additional to the Government’s Information Systems Strategy, policies on Information Society are driven by a number of state or semi-state organizations and institutions. The planning for medium and long-term technological development is partly driven by the Planning Bureau as part of its wider role in the forging of medium and long-term economic policy. The Department of Information Technology Services of the Ministry of Finance is responsible for the implementation of all Information Technology (IT) and Information Society (IS) projects designed and / or required by the Public Sector.

The Institute of Technology is a semi-government body responsible for the promotion and funding of projects related to technology and research. The institute is also directly involved in the development of Information Society (IS) projects. Moreover, the Industrial Training Authority of Cyprus is a semi-government body responsible for assessing needs and formulating training policies (for Cyprus human respources), and for providing information on a wide spectrum of matters to enterprise and the public.

Additionally, the University of Cyprus (Computer Science Department) is heavily involved in the development and promotion of IS project dealing with health and education. The Research Promotion Foundation is a semi-government body responsible for the promotion and development of scientific research in Cyprus. The foundation invites and awards tenders on several research field including IT and IS on an annual basis.

6.2 IS application areas

Under the Government’s Computerization Plan IS is being introduced in a variety of sectors.

6.2.1 Government

Under the Civil Registration Project, the Ministry of the Interior has announced plans to introduce a Smart Card in order to replace the traditional plastic identity card held by each citizen of the Republic of Cyprus. The project is conceived as a key IS project to facilitate and increase the efficiency of bureaucratic functions of government and district authorities.

The Smart card will contain the holder’s name, identity card number, date of birth, parents’ names, photograph and a micro-chip for collection and storage of personal information. A central archive is to be created which will be accessible by all District authorities and will effectively enable the transmission of data necessary for the issue of passports, new ID cards, electoral booklets, refugee Identification and recording of births and deaths. In future, the said project is anticipated to also offer the facility to offer services in the Health, social insurance and income tax fields.

The Government is also pursuing a policy of an Internet Service. The aim is to provide an interface between Government Information Systems and the Internet. It will provide the hardware platform for a Government access node to the Internet to allow civil servants to communicate with external users and to access information and other systems; it will also allow external entities to communicate with Government and to obtain selected services.

Under the Government Data Network, a Wide Area Network capable to link all Government buildings in Cyprus is envisaged.

The Office Automation Pilot Project aims at providing an automated system within the administration of the Ministry of Finance and Department of Information technology Services that will support enterprise-wide document management services and the control of work-groups and work-flow. This is part of a longer term policy to introduce Office Automation technology to the whole of the government sector

6.2.2 Education

The Minister of Education and Culture Mr. Ouranios Ioannides has announced plans for the upgrading of Information Technology teaching in Public Secondary Schools. This has received the welcome support of the Cyprus Technical Bureau (ETEK).

Application of Information Society in education are driven primarily by the University of Cyprus and include the Q-MED programme (an extension of the QUANTUM Trans-European Research Network Infrastructure project) which aims to promote and enhance the co-operation and mutual understanding among the academic and research communities of Cyprus and those of other countries in the region, and the INHERIT (UOC) project aims at the development of a web-based training environment for young people living in rural areas.

6.2.3 Medicine

IS policy in the health sector, is currently focused on the computerization of the Health Information Support System, driven by the Department of Information Technology Services in the context of the Government’s Information Systems Strategy. The aim is to provide a computerised system to support the management of patients and related records in all hospitals and rural health centres. Additionally, the University of Cyprus is heavily involved in driving two inter-linked projects aimed at the creation of a mobile unit for health care provision via telematics support, and the creation of an integrated portable device for emergency telemedicine. These projects are anticipated to further improve the quality of life through the reduction of treatment times, improvement of medical diagnosis, and reduction of costs by being able to transmit critical bio-signals and images to an Emergency Call Center.

6.2.4 Other

Similarly other sector -focused policies are driven by state organizations such as the Water Board and the Institute of Agricultural Research.

A Strategy Study has been initiated with regard to Ministry of Agriculture, Natural Resources and Environment Information Systems. This will include the scope and business cases for all the Ministry’s IT projects and will replace individual preliminary Study reports

The policy for the Computerized Integrated Land Information System aims at developing and implementing a computerized system to support the operations of the Depratment of Land and Surveys. The system will integrate two components, an aspatial Legal/Fiscal component and a spatial Digital Cadastral Database/Survey Database (GIS). The system will support the establishment of a National Land Information Centre capable of exchanging data with other government departments, local authorities and public utilities.

• National Telephone Network : The Cyprus Telecommunications Authority has been placing particular emphasis on Network Development. To this end, the transmission network was fully digitalised at the end of 1998. Since October 1999, the switched network has also been fully digitalised following the removal of the last crossbar analogue telephone exchange. The public switched telephone network (PSTN) is operating in full (100%) digitalization. The total digitalization will allow CY.T.A. to introduce new intelligent services for all the PSTN customers.

• ATM Network : For the introduction of new services, CY.T.A. is proceeding with the installation of intelligent network and Asynchronous Transfer Mode (ATM) network equipment. The installation of the Asynchronous Transfer Mode (ATM) network has been completed early in 2000.

• National Transmission Network : The fourth phase of the SDH (Synchronous Digital Hierarchy) network has been completed. With the implementation of high capacity SDH transmission systems in various topologies, a flexible infrastructure has been created, enabling the fast provision of circuits and the restoration of links and circuits in case of faults. The existing SDH network will form the basis for the provision of new broadband services to CY.T.A.’s customers, based on ATM technology which is in the process of being introduced early in 2000. Since 1999, CY.T.A. has also been part of an agreement for the provision of mini radio links in various applications (GSM network, business customers, remote areas, etc.).

• Submarine Fiber optic Cable Systems : The international network has been upgraded significantly in the past 2 years (1998-1999). The LEV submarine fiber optic cable system which links Cyprus, Israel and Italy has been completed, and the SEA-ME-WE3 intercontinental submarine fiber optic cable system is nearing completion.

The contract for the Black Sea Fiber Optic Cable System (BSFOCS) which will link the countries of the Black Sea (Bulgaria, Ukraine, Russia) was also signed in 1999, and the system is expected to be ready for services in September 2000. The Greek and the Cypriot Telecommunication Authorities were the main participants in the preparation of the specifications, the evaluation of tenders for the project, and the execution of the various negotiations.

At the same time, CY.T.A. has proceeded with the gradual upgrading of the local telephone network management center and a substantial number of local telephone exchanges. Through this upgrading, a developed network infrastructure is being created with increased capacity and the capability of providing improved services.

• Satellite communications : CY.T.A. is a member of the International Telecommunications Satellite Organization (INTELSAT), the European Telecommunications Satellite Organization (EUTELSAT), and the International Mobile Communications Satellite Organization (INMARSAT), while it also uses other satellite systems such as SIRIUS II and the Russian GORIZONT system.
  
  The installation of a satellite system for the operation monitoring and maintenance of EUTELSAT’s DAMA system which CY.T.A. undertook after an international competition, was completed in 1999. The system will provide VSAT satellite communications to Europe, Russia, and the Middle East.
  
  Since 1998, CY.T.A., through the installation of the satellite earth station has enabled the transmission of the CYPRUS-SAT programs via the Sirius II satellite
  
  Finally, CY.T.A. has created a company called Iris through its subsidiary DIGIMED in collaboration with the British "Merlin Communications" to explore links between Europe and Asia for the turnaround of television and radio programs between the two continents. Iris is already offering interconnections from Intelsat Hotbird and Arabsat 2A to AsiaSat 2.
  
  CYTA GSM : Through a digital GSM system, this provides almost global coverage (currently to 74 countries) and a wide range of additional facilities. SYMPHONY, the recently launched prepaid version of the service, along with planned network enhancements and new marketing plans, are expected to increase the market penetration for mobile phones considerably.
  
  

• Overview of the Existing IT Infrastructure : The Authority maintains a company-wide high speed computer network comprising two Data Centres and about sixty NT based Local Areas Networks with more than 1500 user workstations. 
  
  The computer network provides the necessary IT infrastructure for the production platform for mainstream business information systems as well as the platform for generic office support systems and end-user computing tools. 
  
  The mainstream business information systems, being operated on a central system and exhibiting a high degree of integration, support and automate major business activities and respective data stores such as Network Development and Operation, Customer Services and Customer Care, Network Resource Management Billing and Payment Collections, Personnel Management, Stores and Inventory Management etc.
  
  Generic office support systems and end user tools, alongside with a state-of-the-art intranet, provide the Authority’s professionals an integrated and rich in facilities environment allowing them to exploit IT technology to increase efficiency and improve quality in performing their job. The facilities include major standard packages for Sharing Information Electronic Mail, Calendar and Time Management, Project Management, Word Processing, Spreadsheet, Preparation of Presentation etc.
  
  

• Packet Switching Public Data Network (PSPDN) : The total capacity of the 8 switching nodes of the data network installed has increased from 634 ports in Summer 1999 to 751 ports presently. These serve a total of 585 direct subscribers (as against 326).

2.1 Telecommunication liberalization

2.1.1 Overview

The Cyprus government has decided to take the necessary measures for the drafting of a new telecommunications law, and a law for the set up and operation of an independent Regulatory Authority. Towards this end, it has asked the management of the Cyprus Telecommunications Authority to submit a legislation draft pertaining to the legal and operational status of the Authority in view of the discussed liberalization of the telecommunications sector. CY.T.A. has submitted the said draft, which is currently being evaluated.

The Minister of Communications and Works Mr. Averof Neofytou in the first quarter of 2000 announced that the Cyprus government is in the process of preparing new legislation aiming at terminating the monopoly and at harmonizing the telecommunications sector to the European acquis.

Additionally the Government, through the Ministry of Communications and Works has invited the submission of tenders from companies firms and individuals for the engagement as consultants to execute work appertaining to the harmonization of Cyprus to the acquis communitaire in the telecommunications and postal services sectors.

Consistent with the above, Cyprus expressed its commitment to comply with the European Union acquis (aiming at ensuring technical compatibility between different systems with the European Commission standards, and at encouraging competition in the sector relating to the liberalization of service provision in the field of telephony, satellite services, mobile phones and subjects relating to the economic supervision of telecommunications and the separation of regulatory from operational functions) by December 31, 2003 (this including a transition period of 1 year).

Cyprus has also asked for the technical assistance of the EU for the implementation of some parts of the acquis so that there is a smooth transition from the present monopolistic situation to full liberalization.

In response, the EU invited Cyprus to give the necessary information to allow for an assessment of the time needed for full liberalization of the telecommunications market. Furthermore, with respect to the request for the transition period, the EU expressed the hope that adequate progress is made so that these requests are reduced or withdrawn.

2.1.2 Policy decisions

On June 10, 1998 and on October 7, 1998, the Council of Ministers adopted decisions concerning the Telecommunications Sector. These decisions referred to the following :

• Immediate separation of the Regulatory and Operational function and responsibilities

• Immediate establishment of a National Regulatory Authority (NRA) with the following functions and responsibilities :

  • Type approval of telecommunications equipment ;

  • Control of CY.T.A. prices and (at a later stage, following liberalization) control of market prices ;

  • Granting of licenses to provide telecommunications services and operate telecommunications equipment ;

  • Determination of the rules (technical and financial) governing telecom networks ;

Other competencies which fall within the framework of operation of a National Regulatory Authority (NRA). NRA will, at first, be set up in the directorate of Telecommunications of the Ministry of Communications and Works until further decision is taken.

Consultants will be commissioned to undertake the implementation within a year of the above decisions by the Council of Ministers.

The setting up of a committee composed of representatives of the Ministry of Communications and Works, the Ministry of Finance, the Planning Bureau, the Legal Service of the Republic and the Cyprus Telecommunications Authority, under the chairmanship of the Permanent Secretary of the Ministry of Communications and Works, in order to offer guidance and support to the consultants.

To assign to NRA in cooperation with the consultants, the preparation of a study on the adoption of a revised time-frame for the liberalization of the telecommunications sector.

2.2 New laws under preparation

• Telecommunications : as described in sub-sections 2.1.1 and 2.1.2

• Media : Cyprus has moved towards harmonization with the European Union acquis through a law draft prepared on September 27, 1999 by the Cabinet of Ministers through the Ministry of Interior and submitted to the House of Parliaments for approval. 
  
  The said draft (Radio & TV Stations Law 2 of 1999) aims at modifying the existing relevant legislation in accordance to the corresponding European legislation and more specifically, with the Direction 89/552/EEC and 97/36/EC, thus harmonizing the existing legislation to the relevant EU legislation in the audio-visual field.
  
  The suggested modifications relate to the definition of the terms "advertisement", "station", and "sponsorship"; the modification of the proportion of cultural programs broadcasted ; the proportion of the European programs broadcasted ; the exclusivity in the broadcasting of certain events ; and the total time spent on advertising and on telemarketing.

Following a successful bid in an international competition, CY.T.A. undertook the installation of a satellite system for monitoring and maintenance of EUTELSAT’s DAMA system which would provide VSAT satellite communications to Europe, Russia and the Middle East.

As described earlier, CY.T.A. is also moving ahead with the creation of a teleport in Cyprus, in collaboration with the British company Merlin Communications Ltd., and, through DIGIMED, it is part of the execution team for the European African Satellite Communications System (EAST).

Finally, Iris Gateway Satellite Services started its operations with a promotional event held in Nicosia, in the presence of the president of Cyprus. The said company is a joint venture of Digimed (a subsidiary of CY.T.A.), and of the British "Merlin Communications International". Iris primarily offers services of interconnection of satellite systems based on digital technology DVB which allows the provision of audio-video services (voice and data transmission) and access to the Internet, and it is capable of covering Asia, Middle East and Europe. The promotion and sales of Iris’ services were undertaken by Merlin Communications, while the operation and maintenance of the equipment were undertaken by the Cyprus Telecommunications Authority.

As described above, the Government has established an "Information Systems Strategy", a master plan for the computerization of all ministries, departments and independent offices of the government

These are communicated to government officers and to potential suppliers of IT goods and services through the production and distribution of a number of documents outline earlier.

In addition, The Cyprus Development Bank has signed an agreement with the Greek Institute of Technology the Bank of Piraeus and the Minoan Shipping Lines (to be headquartered in Crete) under which it will handle investment in technology research in several field including Information Technology and Telecommunications. This has followed the approval by the Central Bank of Greece and the Central Bank of Cyprus, and is aimed at benefiting technological research in both countries.

Finally, leading officials in the Telecommunications Sector are increasingly emphasizing the need for modernization in the telecom sector in order to allow Cyprus to fulfill its role as a Telecommunication hub in the Middle East and Eastern Mediterranean region. There are ever greater calls for legal and institutional reform, liberalisation, rate changes, business re-planning, e-commerce and the opportunities for job creation.