Telecoms Regulator Vassos Pyrgos told the House Finance Committee that despite liberalisation, CyTA still holds a massive 93.5% of the mobile market, 97% of fixed line telephony and 94% of Internet customers.
Pyrgos used harsh language to criticise CyTA for not allowing new players to enter the market pointing out that while prices were increasing in all other areas of the economy, the cost of telephone calls had dropped by 17%.
“No wonder a major international player like OTEnet has decided not to proceed with new investments to penetrate the market,” said Pyrgos.
Competitors are angry at what they see as CyTA’s attempt to retain its monopoly by allegedly using unfair practices.
Testimony to this is the fact that most of the complaints pending before the Competition Commission refer to alleged trade abuses by CyTA filed by the likes of areeba, Thunderworx, OTEnet, CALLSat, Telepassport and other telecom service providers in the areas of fixed telephony and Internet services.
The fact that CyTA has been operating in a monopolistic environment for 60 years has allowed it to win over the trust of the public and with 100% presence in all areas of Cyprus with respect to its antenna network, it has a better reception than new entrants like areeba.
The EU recently criticised Cyprus regarding the difficulties imposed on areeba with respect to the installation of its antennas as the island’s alternative mobile operator attempts to penetrate the market.
One private operator said at the time that CyTA’s overall share of the market had actually increased from 96% to 97% since last year. The private operators have also informed the EU of the situation.
Pyrgos also criticised CyTA for filing recourses to the courts for every decision made by the Telecom Regulator’s office as well as the fact that CyTA has the financial muscle to promote its services.
“For every single column advert placed by an independent, CyTA splashes a full page, driving the private companies out of the market,” he said.
Asked to comment on possible fines that the Competition Commission may impose on CyTA with respect to a complaint filed by areeba regarding the price reduction on mobile fees, Pyrgos said the fact that CyTA is state owned and has no shareholder means that any fines paid to the government is in effect money given back to the shareholder. “Therefore there will be no outcry on the level of the possible fine.”
The 2006 budget of the Telecom Regulators office envisages total expenses of CYP 2.57 mln, a reduction of 4.75% from 2005 and CYP 3.6 mln in revenue, up 35% from 2005.
