2011 Cyprus - Telecoms, IP Networks, Digital Media and Forecasts

Cyprus requiring further investment in mobile technologies to develop the mobile data sector

BuddeComm’s annual publication, Cyprus - Telecoms, IP Networks, Digital Media and Forecasts, provides a comprehensive overview of the trends and developments in the telecommunications and digital media markets in one of Europe’s smaller markets.

Cyprus’s liberalised telecom market is overseen by the EU regulatory framework for communications, which has been transposed into national law. The competitive environment, particularly in fixed-line services, has been hampered by regulator’s slowness to become fully operational and implement the required measures, a situation compounded by the State’s ownership of the incumbent CyTA.

Nevertheless, progress has been made in the broadband sector where a small number of competitors have access to CyTA’s network through LLU. This has led to effective competition in the main towns: indeed PrimeTel’s LLU-based ADSL2+ platform offers the fastest DSL-based services in the country. Cable broadband is offered by a single provider, Cablenet, with services restricted to a small number of key urban areas. Broadcasting in Cyprus is accessible through a variety of platforms including terrestrial, satellite, broadband TV (IPTV) and cable. The transition to digital terrestrial TV (DTTV) was completed in mid-2011.

The two mobile network operators offer services largely limited by the slow adoption of emerging technologies. There is little evidence of the trends seen in most other European markets for operators to pursue higher ARPU through migrating subscribers to contract plans and to develop high-end mobile data products and services. Although 3G-supported mobile broadband services have become popular, operators will need to invest further in HSPA and LTE during the next two years in order to capitalise on customer demand for data services and content. CyTA has steadily lost market share to the South African-based MTN, while the new MVNO service from PrimeTel promises to provide effective competition in coming years.

Key telecom parameters – 2010; 2012

(Source: BuddeComm)

Market Highlights

• Prepaid mobile subscribers marginally dominate the sector despite lower ARPU from operators. Efforts to migrate subscribers to contract plans have not proved successful, in contrast to developments elsewhere in Europe.
• PrimeTel Mobile launched services in mid-2011 and though it has less than 1% of the mobile market by subscribers the company’s success in the fixed-line and TV sectors indicates that greater competition and cheaper access prices will develop well during 2012.
• Cablenet provides the fastest broadband services in Cyprus, though its network is restricted to a few of the major towns. Its DSL network has extended its reach to other areas, though there is little prospect of capital investment to extend its cable network as well.
• IPTV has become very popular, with PrimeTel and CyTA offering up to 150 channels. Triple play services are available widely, with Cablenet’s market share growing steadily at the expense of both CyTA and PrimeTel.

This report is essential reading for those needing high level strategic information and objective analysis on the telecom sector in Cyprus. It provides further information on:

• Market liberalisation and regulatory issues;
• The impact of the global economic crisis;
• Telecoms operators – new licences;
• Mobile data market developments in coming years;
• 3G developments, regulatory issues and technologies;
• Broadband migration to an FttH architecture;
• Historical and current subscriber statistics and forecasts.

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