Cyprus mobile phone services one of the cheapest in EU

Mobile phone services in Cyprus are one of the cheapest offered in EU member-states, according to the annual report of the European Commission, which records a strong growth both in mobile telephony and broadband internet.

Mobile telephony in Cyprus continued to grow fast in 2008. Mobile penetration was at 126% in October 2008, up 7 percentage points on 2007 and above the EU average of 119%.

Monthly mobile phone bills went up slightly in 2008, but remain as low as 8.72 euros/month from 8.45 euros/month in 2007. For the same period, the average EU27 cost was 19.49 euros/month.

Broadband internet grew significantly in Cyprus in 2008 and was used by 18.2% of the population in January 2009, compared to 13.81% a year before, but was still below the EU average of 22.9%.

However, Commission’s report marks that the Cypriot telecoms scene is still dominated by the incumbent operator, which holds more than 80% of the broadband, fixed and mobile telephone markets. It also notes that authorities have not yet launched an auction for fixed wireless internet access, which could boost competition.

Regarding EU27, the report points out that despite the economic crisis, the EU's telecoms sector (worth about 3% of EU GDP) continued to grow in 2008 with revenues estimated at above 300 billion euros, up 1.3% compared to 2007 and outperforming the rest of the economy (up by 1% only). Consumers gain the most from the sector's competitiveness: they pay less while getting better value for money.

The Commission's report also warns that without better European coordination, the benefits of a single telecoms market could be jeopardised by inconsistent national regulation.

The mobile market remained the most dynamic telecoms segment in the EU in 2008. Mobile phone use rose from 112% of the population in 2007 to 119% in 2008. Italy, Lithuania and Luxembourg are over 140%.