Publication Overview

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

• Market and industry analyses, trends and developments;
• Facts, figures and statistics;
• Industry and regulatory issues;
• Infrastructure;
• Major players, revenues, subscribers, ARPU, MOU;
• Internet, IPTV;
• Mobile voice and data markets;
• Broadband (FttH, DSL, cable TV, wireless);
• Convergence and digital media.

Researcher:- Paul Kwon
Current publication date:- November 2010 (9th Edition)
Next publication date:- November 2011

Executive Summary

Hints evident of improved competition across the market

Cyprus is a modern and prosperous nation in the Mediterranean, and posses a services-dominated economy. Economic growth has been assisted by its EU member status. 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 although real GDP contracted by 1.7% in 2009, with a further 0.4% contraction forecasted by the EU for 2010, before a turn around of 1.3% expansion expected for 2011.

The nation possesses a well-developed telecoms market shaped by EU regulatory principles. The market has been fully liberalised although the incumbent remains government-owned, one of the few remaining in the EU. Government ownership of the incumbent is perceived as an impediment to competition, given the slow progress in stimulating competition through implementing regulatory reform. This will continue to be the case until the incumbent is privatised.

Broadband accounts for the majority of household Internet connections in Cyprus with ADSL the most popular fixed broadband access platform. Competition is based both on competing infrastructure deployments as well as EU regulatory principles designed to create a viable wholesale market. Competing infrastructure platforms include cable and wireless.

Growing broadband TV and cable TV availability has expanded competition in the broadcasting market, competing with terrestrial and satellite platforms.

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 centred on mobile broadband, with both operators offering competitive offerings with generous data allowances.

Market highlights:

• Ongoing activity by the regulator is improving the wholesale market as evident by every decreasing costs for unbundled and shared access loops.
• The majority of households possess a fixed broadband connection, signalling intensified competition in the coming years due to shrinking first-time subscriber acquisition opportunities.
• A second digital terrestrial TV licence was awarded in August 2010 to a consortium of TV broadcasters and ISPs, offering competition to the competing digital terrestrial TV platform operated by the public broadcaster.
• Development of the Mobile Virtual Network Operator market is likely after both mobile network operators were obliged to offer Mobile Virtual Network Operator access.

Cyprus broadband and telecoms statistics – 2010

(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.