Introduction

The legal system of Cyprus, modelled on the English common law system since independence in 1960, is harmonised with the acquis communautaire of the European Union (EU), and the fiscal and regulatory regimes of Cyprus are fully aligned with EU norms. The island is a signatory to a large number of international conventions and treaties, including an extensive network of more than 50 double- taxation treaties.

In Cyprus, telecommunications is an area that has developed rapidly over recent years and is undergoing many changes in its structure, both in terms of participation of more electronic communication providers in the market and modernisation of the services offered, with 4G available since early 2015. The original law governing the telecommunications sector in Cyprus was the Telecommunications Service Law,1 which gave the Cyprus Telecommunications Authority (Cyta) the exclusive right to provide all telecommunication services in Cyprus. The EU regulatory framework was fully implemented in Cyprus by the enactment of the Law on the Regulation of Electronic Communications and Postal Services (the 'RECPS Law'). As a result of Cyprus joining the EU, relevant EU Directives have been implemented, including:

  • Directive 1999/5/EC, regarding radio equipment and telecommunications terminal equipment and the mutual recognition of their conformity;
  • Directive 2002/19/EC, on access to, and interconnection of, electronic communications networks and associated facilities;
  • Directive 2002/20/EC, on the authorisation of electronic communications networks and services (the 'Authorisation Directive');
  • Directive 2002/21/EC, on a common regulatory framework for electronic communications networks and services (the 'Framework Directive');
  • Directive 2002/22/EC, on universal service and users rights relating to electronic communications networks and services (the 'Universal Service Directive'); and
  • Directive 2009/140/EC, on the new EU regulatory framework for electronic communications networks and services.

Cyta is a semi-governmental organisation2 that offers its customers a complete range of telecommunications services adapted to market needs and uses the equipment, tools, and applications that modern technology offers. Its governing board comprises not more than seven members who serve for a five-year term and are appointed by the Council of Ministers.3

Section 12 of the Telecommunications Service Law sets out the functions that Cyta must perform in order to comply with its obligations under the RECPS Law, to provide a universal service for consumers, and to ensure that it promotes the development of the telecommunications service in accordance with international practice and public demand.

Cyta has the power to issue regulations to control the telecommunications service in accordance with the provisions of the RECPS Law.4 Cyta also has been declared as an organisation with significant market power in the following markets:

  • The voice telephony market;
  • The land public networks market;
  • The mobile telephony market;
  • The mobile telephony networks market;
  • The interconnection market; and
  • The leased lines market.

Cyta enjoyed a monopoly on the Cyprus telecommunications market until the sector was liberalised in line with EU policy and requirements and private firms and companies were allowed to compete in the market. Following public consultations and hearings, the Republic of Cyprus had undertaken all relevant necessary initiatives in order to complete the liberalisation process in the electronic communication sector and harmonisation with the acquis communautaire within the period of 2002 and 2003. The procedure was primarily instituted in Cyprus by the establishment of the Office of the Commissioner of Telecommunications and Postal Regulations (OCTPR) in 2002, pursuant to Law Number 19(I)/2002.

The essential goal and purpose was to conduct its obligations in Cyprus in connection with its accession to the EU in May 2004 and at the same time to create the prerequisites and conditions for the development and maintenance of healthy competition. The year 2003 was a milestone in the development of a competitive environment in the telecommunications sector in Cyprus, as it saw the entry of new companies providing telecommunications networks and services into the local market. Parallel to this, legislation was enacted in order to ensure full compliance and harmonisation with the applicable EU framework regarding telecommunications.

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Footnotes

1 Cap 302 of 1954.

2 Cap 302 of 1954, s 3.

3 Cap 302 of 1954, s 5.

4 Cap 302 of 1954, ss 42 and 43

Previously published in Chapter Of International Telecommunications Law

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