2009 Cyprus - Telecoms, Mobile, Broadband and Forecasts

Publication Overview

This report covers trends and developments in telecommunications, mobile, Internet, broadband, Internet society and digital TV developments in Cyprus. Subjects include:

·         Market and industry analyses, trends and developments;

·         Facts, figures and statistics;

·         Industry and regulatory issues;

·         Infrastructure;

·         Major Players, Revenues, Subscribers, ARPU;

·         Internet, VoIP, IPTV;

·         Mobile Voice and Data Markets;

·         Broadband (FttH, DSL, cable TV, wireless);

·         Convergence and Digital Media;

·         Broadband market forecasts for selective years to 2018.

Researcher:- Paul Kwon

Current publication date:- January 2009 (8^th Edition)

Next publication date:- December 2010

Executive Summary

Defined by the International Monetary Fund as an Advanced Economy, Cyprus has enjoyed over a decade of strong sustained economic growth until the recent global economic turmoil. A traditional regional financial centre due to its geographical location, Cyprus possesses a large financial sector measured as a percentage of GDP. Adoption of the Euro in 2008, conservative financial sector practices and strict supervision allowed Cyprus’ financial sector to escape the worst of the global economic turmoil.

Entering 2010 GDP growth is expected to remain stagnant due to depressed investment and private consumption, the latter attributed to a relatively high household debt-to-GDP ratio and depressed consumer sentiment due to a projected rise in unemployment to historically high levels.

Telecom services are expected to remain largely unaffected given the utility nature of most telecom services although the desire to rein in spending may influence certain consumer behaviour, particularly in price-sensitive market segments such as prepaid services.

Cyprus possesses a small, liberalised telecommunications market, with competition improving following market analyses and remedies issued by the regulator designed to improve competition, particularly in regards to the unbundled local loop market which is essential to stimulate competition in the fixed broadband market.

Broadband accounts for the majority of household Internet connections in Cyprus with DSL the most popular fixed broadband access platform. Alternative operators have taken advantage of regulatory mandated network access to launch DSL products in competition with telecoms incumbent CyTA, which also competes with minor cable and wireless broadband platforms. Competing triple play offerings are offered by both the cable and telecoms operators while the country’s growing broadband population is forming the basis of an emerging Internet society.

Two mobile network operators offer services in Cyprus. With the mobile voice market at near saturation, the launch of 3G/HSDPA networks has opened up a new revenue growth opportunity in 2010 centred on mobile broadband, with both operators offering competitive offerings with generous data allowances.

Key highlights:

·         Improved regulatory mandated network access has opened up competition in the fixed telephony market and will form the basis of continued competition in the burgeoning ADSL market in 2010.

·         Over half of all households possess a fixed broadband connection, with recent spectacular broadband growth attributed to competition in the ADSL market. Competition will intensify in 2010 after a competing operator landed the multi terabit HAWK international submarine cable in Cyprus to improve international Internet connectivity.

·         An emerging Internet society is evident, encompassing commerce, health and government services with participation expected to improve in 2010 and 2011 in the wake of increased broadband penetration.

·         Digital TV services are accessible via satellite pay TV and broadband TV (IPTV), with take up potential of the latter improving due to increased broadband penetration.

·         Cyprus’ two established mobile network operators have launched 3G/HSDPA services. Growth in 2010 will be focused on promoting 3G take up as existing revenue from voice comes under pressure from competition due to lack of revenue growth opportunities in the saturated market.

Cyprus broadband and telecoms statistics – 2008 - 2009

(Source: BuddeComm based on industry data)

Data in this report is the latest available at the time of preparation and may not be for the current year.

Table of Contents

• 1. Key statistics
  • 1.1 Country overview
• 2. Telecommunications market
  • 2.1 Overview of the Cypriot telecom market
  • 2.2 Wholesaling
• 3. Regulatory environment
  • 3.1 History
  • 3.2 Regulatory authority
  • 3.3 Telecom sector liberalisation in Cyprus
    • 3.3.1 Privatisation
    • 3.3.2 Interconnect
    • 3.3.3 Access
    • 3.3.4 Number portability
    • 3.3.5 Carrier selection and carrier preselection
• 4. Fixed network operators In Cyprus
  • 4.1 Overview
  • 4.2 CyTA
    • 4.2.1 CyTA SMP obligations
  • 4.3 OTEnet
  • 4.4 PrimeTel
• 5. Telecommunications infrastructure
  • 5.1 National telecom network
  • 5.2 International infrastructure
    • 5.2.1 Submarine cable networks
    • 5.2.2 Satellite networks
    • 5.2.3 Telecoms and IT
• 6. Internet market
  • 6.1 Overview
    • 6.1.1 Internet statistics
  • 6.2 Cyprus’ emerging Internet economy
    • 6.2.1 Overview
    • 6.2.2 E-Government
    • 6.2.3 E-Commerce
    • 6.2.4 E-Health
• 7. Broadband market
  • 7.1 Overview
    • 7.1.1 Broadband statistics
  • 7.2 Asymmetric Digital Subscriber Line (ADSL)
  • 7.3 Cable broadband
  • 7.4 Fibre-to-the-Home (FttH)
  • 7.5 Wireless broadband
  • 7.6 Broadband forecasts – 2009-2012; 2018
    • 7.6.1 Scenario 1 – stronger broadband subscriber growth
    • 7.6.2 Scenario 2 – slower broadband subscriber growth
• 8. Digital media
  • 8.1 Overview of triple play models
  • 8.2 Overview of broadcasting market
  • 8.3 Digital TV
    • 8.3.1 Broadband TV (IPTV)
    • 8.3.2 Cable TV
    • 8.3.3 Satellite-based digital pay TV developments
    • 8.3.4 Digital Terrestrial TV (DTTV)
• 9. Mobile communications
  • 9.1 Overview of Cyprus’ mobile market
    • 9.1.1 Mobile statistics
  • 9.2 Regulatory issues
    • 9.2.1 Mobile number portability
    • 9.2.2 Second GSM licence
    • 9.2.3 EU roaming tariffs
    • 9.2.4 3G licences awarded in Northern Cyprus
    • 9.2.5 Mobile Termination Rates (MTR)
  • 9.3 Mobile technologies
    • 9.3.1 Digital
    • 9.3.2 Third generation mobile (3G)
  • 9.4 Major mobile operators
    • 9.4.1 Overview of operators
    • 9.4.2 Cytamobile-Vodafone
    • 9.4.3 MTN Cyprus
    • 9.4.4 Kibris Telekom
  • 9.5 Mobile voice services
  • 9.6 Mobile data services
    • 9.6.1 Overview
    • 9.6.2 Short Message Service (SMS) and Multimedia Messaging Service (MMS)
    • 9.6.3 General Packet Radio Service (GPRS)
    • 9.6.4 Push-to-Talk (PTT)
    • 9.6.5 Mobile TV
    • 9.6.6 Mobile broadband
    • 9.6.7 BlackBerry
  • 9.7 Mobile content and applications
    • 9.7.1 Analysis
    • 9.7.2 Portals
• 10. Glossary of Abbreviations

• Table 1 – Country statistics Cyprus – 2009
• Table 2 – Telephone network statistics – 2009
• Table 3 – Internet user statistics – 2009
• Table 4 – Internet subscriber statistics – 2009
• Table 5 – Broadband statistics – 2009
• Table 6 – Mobile statistics – March 2009
• Table 7 – National telecommunications authority
• Table 8 – Wholesale lines by type – January 2009
• Table 9 – CyTA interconnection rates – 2006 - 2008
• Table 10 – Cost of Local loop unbundling and share access – 2006 - 2008
• Table 11 – CyTA financial data – 2004 - 2008
• Table 12 – PrimeTel financial data – 2008 - 2009
• Table 13 – Fixed lines in service and teledensity – 1995 - 2009
• Table 14 – Household access to ICT devices – 2005 - 2008
• Table 15 – Workplace network usage by network type – 2004 - 2008
• Table 16 – Internet users, subscribers and penetration rates – 1999 - 2009
• Table 17 – Devices used to access the Internet at home – 2004 - 2008
• Table 18 – Internet penetration among businesses, by employee size – 2004 - 2008
• Table 19 – Take up of e-government services by businesses – 2004 - 2008
• Table 20 – Take up of e-government services by individuals – 2004 - 2008
• Table 21 – Online purchases by individuals – 2005 - 2008
• Table 22 – Percentage of businesses receiving orders online, by employee size – 2004 - 2008
• Table 23 – Data types stored by GP practices – 2007
• Table 24 – Electronic data exchanged by GP practices – 2007
• Table 25 – Broadband subscribers by access type – January 2009
• Table 26 – Broadband subscribers and penetration rate – 2001 - 2009
• Table 27 – Fixed broadband subscribers by data speed – January 2009
• Table 28 – Forecast fixed broadband subscribers – higher growth scenario – 2009 - 2012; 2018
• Table 29 – Forecast fixed broadband subscribers – lower growth scenario – 2009 - 2012; 2018
• Table 30 – Mobile operators, subscribers and annual change – March 2009
• Table 31 – Mobile subscribers and penetration rate – 1995 - 2009
• Table 32 – Ratio of prepaid to postpaid subscribers – 2000 - 2008

• Exhibit 1 – The EU regulatory framework for communications
• Exhibit 2 – Access, the local loop and unbundling – an overview