January 2001

Cyprus Master Report

This is the final Regulatory Developments report on Cyprus as the ESIS project ended in January 2001. This Master Report covers the whole period of the ESIS project surveying the Mediterranean area, March 1999 - January 2001 inclusive. 

2.1. Historical Overview and General Legislation

The following paragraphs and tables provide a historical overview and summary to date of the general legislation.

2.1.1 Historical Overview

Media: Up until 1990 and 1992, the Cyprus radio and TV environment respectively was characterized by a monopoly situation. The Cyprus Broadcasting Corporation (Cy.B.C.) being the only organization broadcasting radio and TV programs. Cy.B.C. was and still is a semi-government organization, partly funded by the State, and being the state radio and television of Cyprus.

In 1990 and 1992 the market for radio and TV respectively were liberalized under law 120 of 1990 and 205 of 1991 (radio) and under law 29(I) of 1992 (TV) which provided the necessary authority to the Council of Ministers to issue licenses for the establishment and operation of private radio and TV stations which to broadcast on a frequency determined by the International Union of Telecommunications.

Initially, several radio stations were introduced. Subsequently, privately owned open TV stations also entered the market. Currently, there are 4 TV stations broadcasting on a national basis (Cy.B.C., Antenna, Sigma, Logos), 4 local TV stations (Fred, Extra, Paphos, FM), and 2 subscriber (pay) TV stations (LTV, Alpha). Furthermore, there are 5 national radio stations and in excess of 20 local radio stations operating in Cyprus.

Telecommunications: The Telegraphs Law of 1933 (Cap. 305) granted the Council of Ministers the exclusive privilege of controlling the licenses for establishing, constructing, and maintaining telegraphs and telegraph lines. All the relevant licenses should have to be issued by the Minister of Communications and Works.

The Telecommunications Service Law (Cap. 302) of 1954 is a law which established the Cyprus Telecommunications Authority as a public corporate body. The law granted CY.T.A. the performance of all functions relating to the provision and maintenance of telecommunication services. CY.T.A. was granted the exclusive right for the provision of telecommunication services and the operation and maintenance of a telecommunications network including basic infrastructure.

The Wireless Telegraphy Law (Cap. 307) governs the management of the electromagnetic spectrum and establishes the rights and obligations of the Republic and of the frequency users. The scope of the law covers :

• Frequency management activities relating to radio-communications
• the obligations of the persons who deal with these activities, and
• the manufacturing, establishment, installation, importation, use and maintenance of stations or apparatus which emit or receive electromagnetic energy.

2.1.2 Present general legislation

Media: Under laws 7(I) and 88(I) of 1998, the licenses for the establishment, installation and operation of radio and / or TV stations are issued and reviewed by the "Authority of Radio-Television of Cyprus". All the technical details of the planned stations (number of stations, geographical coverage, broadcasting frequency, power) are determined by the Minister of Communications and Works.

In addition, the House of Parliament has passed the complementary law 13(1) of 1999 describing the requirements for the establishment and operation of a TV station : the responsibilities of the applicant with regards to the design of the necessary infrastructure ; the quality control of the TV program contents ; the assessment of complaints and violations ; and the framework governing the TV advertisements.

Additionally, the Authority of Radio and television is expected to issue permanent (i.e. 10 year) licenses to radio and TV stations early in the year 2001, under the "Plan for Radio and Television Coverage" which is to be implemented by the Ministry of Communications and Works and the Ministry of the Interior. The plan does not allow for any new TV stations of nation-wide coverage.

Discussion has been also raised in Parliament on the gap and the need for legislation to govern the operation of Digital Television.

Telecommunications: The basic law governing the telecommunications sector in Cyprus is the Telecommunications Service Law, Cap.302 of 1954. The above law grants CY.T.A. the exclusive right to provide all telecommunications services in Cyprus. The provision of some telecommunications services namely voice telephony, telegraphs, CYTAPAC is governed by Regulations (secondary legislation).

Other laws governing the sector are inter alia the Telegraphs Law Cap.305 (amended), and the Wireless Telephony Law Cap.307 (amended). These laws are accompanied by regulations.

2.1.3 Key legislative measures

Media:

TABLE 1

In addition to the above measures, on August 8^th 2000, consultants to the Ministry of Communications and Works completed work on the new telecommunications legislation which would lead to liberalization of the wider telecommunications market, harmonizing the sector with the European Acquis. The legislation has yet to be approved by Parliament.

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.

2.2 Umbrella Policies and National IS strategy

2.2.1 National IS Strategy and Policy

The Government of Cyprus has established an "Information Systems Strategy", a master plan for the computerization of all ministries, departments and independent offices of the government Originally conceptualized in 1987. The said Information Systems Strategy, which was revised and approved by the Computerization Executive Board in 1997, defines a policy framework in three areas : management policies ; technical policies ; and strategic information systems. 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. It is estimated that between 1998 and 2001 the expenditure on the Government’s Information Systems Strategy will rise to 64 million Euros.

2.2.2 Umbrella policies

In addition 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.

2.3 IS Application Areas

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

In the area of Government, key IS projects under way include the Internet Service, Government Data Network and Office Automation Pilot projects, driven by the Department of Information Technology Services.

Additionally, under the envisaged 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, nevertheless, it is still at the planning phase. 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.

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.

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 Department 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.

2.4 Government and Administration

In terms of new developments in the area of government and administration, the first phase of the Government’s Information Systems Strategy has now been completed, and the second phase is was drawing towards completion at the end of the year 2000, This will allow the operation of the Data Network and interconnection of all Government Information Systems. Additionally, all offices will be equipped with an Automation System. The aims of the new phase include the improvement of services to the public, the successful implementation of legislation, and better planning, control and assessment of government activities. The new phase also aims at minimizing government sector operational costs, raising government revenue and alignment with European Union standards.

2.5 Telecommunications and Internet

There have been significant developments relating to the Telecommunications and Internet sector in the course of the years 1999-2000.

2.5.1 Telecommunications - Liberalisation

As indicated earlier, the market for telecommunications is partially liberalized in the sense that while all voice telephony and mobile communication are monopolized by the Cyprus Telecommunications Authority (CY.T.A.), a state (semi-government) organization, certain services like data transmission, value added services, Internet services provision, and equipment provision are liberalized.

The Telegraphs Law of 1933 (Cap. 305) granted the Council of Ministers the exclusive privilege of controlling the licenses for establishing, constructing, and maintaining telegraphs and telegraph lines. All the relevant licenses should have to be issued by the Minister of Communications and Works.

The Telecommunications Service Law (Cap. 302) of 1954, described in Quarter 3 report, is a law which established the Cyprus Telecommunications Authority as a public corporate body. The law granted CY.T.A. the performance of all functions relating to the provision and maintenance of telecommunication services. CY.T.A. was granted the exclusive right for the provision of telecommunication services and the operation and maintenance of a telecommunications network including basic infrastructure.

Nevertheless, in line with the relevant European Commission legislation, there is a strong movement headed by the Cyprus government to deregulate CY.T.A., thereby liberalizing the telecommunications market, as mentioned earlier.

2.5.2 Telecommunications - Tariff Policy

In terms of the Cyprus Telecommunications Authority’s tariff policy the last quarter of 1999

saw the preparation of a tariff rebalancing study by the Authority, which was submitted in a relevant proposal to the Ministry of Communications and Works. The proposal suggested the gradual adjustment of telecommunications services tariffs in order for the competitiveness of the Authority to be enhanced. Accordingly, CY.T.A. has proceeded as from August 1^st,2000 to lower international rates by up to 78%, and ISDN subscription rates by 33%.

The overall policy also includes rises in the rates for national and domestic charges on the other hand, while lowering of rates on mobile phone. The aim is to stop the effective subsidization of national calls by international calls, as well as the lending to local calls from inter-city calls.

The rise in rates for local calls followed a three stage process, with the final stage being implemented from the beginning of the year 2001. With the implementation of the final rise the total increase amounts to up to 300% compared to the initial rates, in many cases.

Specific measures in the policy include the following :

• 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 December 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.
• Homogenous internet use rate over 24 hours at 2 cents every 4 minutes.

Proposals on mobile telephone charges already implemented since August 1^st,2000 include a reduction of monthly subscription rates from 10CYPounds to 8CYPounds

The Parliamentary Committee for Communications has also agreed on September 26^th,2000, in principle to include a special package in the context of the Cyprus Telecommunications Authority's tariff re-balancing scheme, for lower income households, specifically for those that run bills of less than 8 CY Pounds per month. The key aspects of this package would include the following : every natural person would have the option of participating in the special rate, if he/she selects, paying 1.50 CY Pounds rather than 5 CY Pounds monthly subscription with an additional 2 cent charge per successful call.

Media: As regards the tariff policy for the 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.

2.5.3 Telecommunications – Infrastructural Development

The Cyprus Telecommunications Authority has been placing particular emphasis on Network Development. To this end, the transmission network was fully digitalised prior to 1999. Since October 1999, the switched network was also 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.

Telephony Services are further supplemented by Operator Assistance, Toll-free calling and global ISDN, which supports all bearer services, as well as a variety of teleservices and supplementary services.

Dedicated transit connections: To extend capacity from one international submarine cable landing in Cyprus to another, and to interconnect satellite facilities with these cables, dedicated transit connections via CYTA’s network are available on the national coastal systems TEFROS and KINYRAS. The reliability of service is safe-guarded by supplementing them with terrestrial fibre optic cable routes, ensuring comprehensible diversity and restoration. Such facilities can be acquired on either a Rights of Way (long term lease DDP) or a short term lease basis.

Transfer of capacity in submarine cable systems: As a major co-owner and administrator of systems, CYTA facilitates the transfer of capacity on submarine fibre optic systems on both IRU and lease basis. Owners of capacity in major international cable systems landing in Cyprus have access to considerable reserve capacity in submarine cables which connect Cyprus to rapidly developing neighboring countries.

Several submarine fibre optic cable systems are currently in service connecting Cyprus with:

• The West: Greece-Aphrodite 2
  This cable interconnects with ARIANE 2, of which CYTA is a major co-owner, and stretches from Crete in Greece to Marseilles, France. It constitutes one of the two major digital backbone facilities connecting Cyprus to Europe, the American continent and the rest of the world.
• The East: Israel, Lebanon and Syria
  These are repeaterless cable systems of SDH technology
• The South and beyond: Egypt
• The East and West: Israel and Italy-LEV
  This state-of-the art cable system operated in January 1999, is used to interconnect Cyprus to Israel on the East and Italy on the West, with Cyprus maintaining a major role in the regional network.

CYTA is continuously evaluating the connection of Cyprus to other planned fibre-optic networks the world over. Currently, it is actively participating in the implementation of the Black Sea Fibre-Opt. This fibre optic cable system constitutes part of the SEA ME WE 2 cable system reaching from Marseilles to Singapore, by way of the Middle East, making it the second major digital facility connecting to Cyprus to the world at large.

Video broadcasting: Occasional, periodic or long-term video broadcasting around the world, both terminating in Cyprus, and transiting Cyprus, can be supplied either through CYTA’s considerable satellite facilities or with the latest fibre-optic video links for even better quality and heightened security.

Global signaling transit products: CYTA operates an extensive international Common Channel Signaling System (CCSS7) network with full redundancy of switching notes, a diversity of transmission paths and a large number of direct signaling links which makes easy and reliable interconnections to most fixed and mobile telephony networks possible. CYTA has developed its international CCSS7 network into a high quality, value- added-services data transmission network and currently offers the following global signalling transit products: CyraSignal,Cyta Signal plus, CytaRoam, CytaRoam plus

International restoration via cytarestore: In combination with other extensive restoration facilities through several cable systems in the Mediterranean basin, CYTA can guarantee a high level of availability and service to customers. CYTA currently offers to International Telecommunication Entities and to Cable Co-owners the international restoration produst CytaRestore.

This far-ranging fibre optic cable network is supplemented by an equally impressive satellite tele-communications network which delivers enhanced and high quality international connectivity. CYTA is a co-owner of INTELSAT, EUTELSAT, INMARSAT and ICO, and, in addition, has access to Russian and other satellite systems. Two earth station sites owned and operated by CYTA, have a total complement of more than 20 antennae.

Finally, taking advantage of its far-reaching international network, CYTA can provide digital point-to-point and point-to-multipoint IPLCs between most destinations. Customers can count on fully-managed first-rate connections from 64kb/s to 2 mb/s or more, without worrying about going over-budget. Plus, in response to individual needs, CYTA puts together customised access solutions.

2.5.4 Internet

As described above, in the area of Government, key IS projects under way include the Internet Service, Government Data Network and Office Automation Pilot projects, driven by the Department of Information Technology Services.

Committed to becoming the leader in expanding Internet access in the eastern Mediterranean and the Middle East region, CYTA fully exploits its excellent telecommunications infrastructure. Via "Global CytaNet" it effects maximum performance for all customers, including regional Internet Service providers.

In addition, Cytanet, the ISP service of the Cyprus Telecommunications Authority has completed its work on extending the connection with of the Authority’s network with the telecommunications Authority Teleglobe America, to 16 Mbp/s. This extension form part of the Cyprus Telecommunication Authority’s continuing focus on investment.

In terms of charges for accessing the Internet, the CY.T.A. has proceeded as from January 1^st , 2001 to introduce rates of CY 0.02 per 6 minutes and 10 seconds

2.5.5 Personnel

Finally, in terms of key personnel, it should be noted that since July 2000, Mr. Efstathios Papadakis holds the post of president of the executive council of the Cyprus Telecommunications Authority, and Mr. Antonis Drakos the post of president of the executive council of the Cyprus Broadcasting Corporation.

2.6 Electronic Commerce

Although the issues of regulations regarding electronic commerce has publicly been raised and discussed, to-date there is no relevant formal legislation implemented.

2.7 Education and Research

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 Authority for the Development of Human Capital is a semi-government body responsible for assessing needs and formulating training policies (for Cyprus human resources), 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.

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.

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.

Finally, since the first quarter of the year 2000, the Cyprus Development Bank has been in 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.

2.8 Transport

No specific IS policy or application related to the Transport sector has been found.

2.9 Health Care

IS policy in the health sector, is 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 computerized 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.

2.10 Labour

No specific IS policy or application related to Labour has been found.

2.11 Competition

No specific IS policy or application related to Competition has been found.

2.12 Access for all

No specific IS policy or application related to Access for All has been found.

2.13 Copyright, intellectual property rights

No specific IS policy or application related to Copyright or Intellectual Property Rights has been found.

2.14 Public access to data

No specific IS policy or application related to Public Access to Data has been found.

2.15 Privacy, data protection, consumer protection

Historically, there has been no legislation concerning electronic privacy and data protection in Cyprus.

However, new legislation is being discussed by Parliament concerning privacy and private data protection, as announced by the Deputy Attorney General, Mr. Petros Clerides. The aim is to secure private personal data protection, not only of "sensitive data" (e.g. religion) which are already protected by law, but also of "non-sensitive" data on which the keeping of archives is allowed, but not their publicizing.

According to the regulations of article 51 of the Radio & TV Stations Laws of 1998 and 1999, described by the Quarter 4 Report, 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

2.16 Security

No specific IS policy or application related to Security has been found.

2.17 Freedom of expression and information as far as the distribution via electronic networks is concerned

No specific IS policy or application related to Freedom of Expression and Information has been found.

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 (last quarter of 1999).