CyTA sues Telecom Regulator for CYP 14 mln

CyTA, the state-owned telecom of Cyprus is suing the Telecom Regulator and in turn the Cyprus government seeking damages of up to CYP 14 mln for loss of revenue because the Telecom Regulator did not allow it to hike the monthly rental on fixed telephony.

Cyprus Telecom and Postal Services Regulator Vassos Pyrgos revealed the CyTA’s claim following a news conference presenting the Annual Report for 2005, adding that it is ironic that before the Telecom Regulator’s office was created in 2002, CyTA had demanded to hike the monthly rental of fixed telephony.

“We commenced operations in 2003 and we demanded that CyTA submit details of its costing, in order to decide whether its demand to hike the monthly rental to CYP 8 per line per month was justified and warranted,” said Pyrgos.

After CyTA submitted its costing analysis and it was confirmed that indeed its costs were higher, the Telecom Regulator then gave it permission to hike the monthly rate.

CyTA, now claims that it lost revenue during the period when the Regulator was examining its case and is now seeking CYP 14 mln in lost revenue, something that Pyrgos views as totally unwarranted.