* 3rd mobile operator by summer ’14 (or sooner)
Cyprus is getting ready for a massive telecommunications upgrade to a high-speed fourth generation (4G) network, as the Ministry of Communications announced that it will auction frequencies available on the spectrum paving the way for a third mobile operator, some time next year.
“This will be an open competition in the form of an auction, with the interest period closing on July 24 and the bidding to start from 12.3 mln euros,” said the ministry’s Director General Alecos Michaelides, who said the price was “reasonable” and could be adjusted according to interest.
However, telecom industry experts told the Financial Mirror that the adjustment could even be upwards, if there are several bidders, or even downwards, if only one shows up or is prequalified.
Areeba, later taken over and renamed MTN Cyprus, was the final bidder for the first commercial license in 2005, upping the stake to 22 mln euros and knocking out Greek bidder OTE from the race. Government-owned Cyta matched the 22 mln price.
Local telco PrimeTel is expected to lead the bids for the new licenses, as it already operates a mobile service using local carriers and transmission network.
The government is rushing through the auction as it is already six months behind schedule, according to EU competition rules for the sale of available frequencies, or else it could face harsh penalties.
Experts also believe that if an operator such as PrimeTel wins the auction, with operations already in place, the third mobile network could be up and running “much sooner” than the initial deadline of the end of summer 2014.
Meanwhile, Petros Galides, Deputy Telecoms and Post Regulator, said that with more than 1.2 mobile accounts per person in Cyprus, “it is natural for operators to invest in the next technology of telecommunications.”
Galides explained that current operators Cyta and MTN are already working towards implementing their 4G networks, while Cyprus is also expected to follow the international trends of high-speed broadband using fibre optic networks with speeds of 30-100 gigabits, and advanced mobile services.
