Telecommunications

INTRODUCTION

Telecommunications Infrastructure

Cyprus offers a very efficient telecommunication systems with the following services.¹

(a)Fully automatic 24-hour direct dial telephone connection with most countries. All other countries can be reached through the operator;
(b)Telegraph service connection with every part of the world;
(c)International automatic telex and facsimile service;
(d)Datel service for the transmission of computer data both nationally and internationally over the public telephone network;
(e)ISDN, ADSL and wireless connections for internet service;
(f)Radiotelegraph and radiotelephone services with ships at sea on a 24-hour basis;
(g)Automatic telex for ships through the Marisat service (maritime service through satellite);
(h)TV transmission and reception on a 24-hour basis available to news agencies and television and radio networks through the Makarios satellite earth station;

The telecommunications sector in Cyprus exhibits a continuous and satisfactory rate of growth. The continued rapid growth of the telecommunications sector is associated, on the demand side, with the continuously increasing use of telecommunications services, mainly by export-oriented enterprises, and, on the supply side, with the upgrading and expansion of the range of services provided by the Cyprus Telecommunications Authority (CYTA), Primetel and other telecommunications providers as a result of on-going technological advances.

Advanced data transmission systems, GSM mobile telephony and high quality value added services make Cyprus an ideal location for offshore business enterprises which depend on fast, dependable telecommunications. Cyprus recognising the importance of telecommunications has invested heavily in the development of this sector. As a result, the island may claim, in this respect, to be among the most developed countries in the world. This claim is justified by Cyprus' automatic telephone connection with almost the entire world. In addition, services provided include telefax, packet switched data transmission, mobile telephony (GSM and NMT900), voicemail, paging, telex, telegraphy, maritime, TV transmission/reception, private leased circuits, audiotex and videoconferencing. The national network uses state-of-the-art technology such as digital switching and transmission systems and fibre optic cables. Other services that were introduced include the Paneuropean Paging System (ERMES), the Integrated Services Digital Network (ISDN) as well as new value added services such as videotext and the message handling system X.400.

As for the international network, the island is primarily connected with the outside world through 8 submarine cables, five of which are of fibre optic technology (2,898 kilometres). Submarine fibre optic cable systems connect Cyprus with Greece (Aphrodite 2), Israel (CIOS), Syria (Ugarit), Lebanon (Cadmos) and Egypt. The latter constitutes part of a huge submarine fibre optic cable system, SEA-ME-WE-2, stretching from Marseilles to Singapore, with CYTA being one of the 60 telecom organisations which have participated in its establishment. Furthermore, CYTA with an investment of EUR 28,5 million has made Cyprus a landing point of SEA-ME-WE3, a 38,000 km long 10 Gbits state-of-the-art submarine fibre optic cable network linking the Pacific Rim, South Eastern Asia, the Middle East and Western Europe. CYTA is also involved in the establishment of a submarine fibre optic cable system in the Black Sea region with access to Europe and the Middle East. In addition, CYTA has signed an agreement so as to become a landing point for the MED1-LEV submarine cable system, connecting Israel, Cyprus, Italy which has become operational in 1999. For this project, a consortium formed by Alcatel, Pirelli Cables and Systems SpA and Tyco Submarine Systems Ltd has won a contract for EUR 76 million.

Where satellite communications are concerned, Cyprus is connected to 6 major and a number of smaller satellite earth stations. These stations operate via INTELSAT and EUTELSAT as well as via the Russian satellite network, to serve the ever-increasing telecommunications traffic between Cyprus-Russia and other countries of the Commonwealth of Independent States. CYTA has also created a teleport in Cyprus in co-operation with the British company Merlin Communications Ltd in order to provide satellite links between Europe and Asia.

Note:
1. CBA, ‘Cyprus – A Base for International Business’; created March 1997; available from http://www.cba.com.cy/
cyprus.html#6_4; accessed 27 March 2005.

The Information and Communications Technology Market
The evolution of the national economy, the accession process to the European Union with harmonisation efforts and the geo-strategic position of Cyprus as a hub between the East Mediterranean region and the Middle East, have resulted in high growth in the ICT market. National strategy in the IT field has been focused on the creation of a modern infrastructure in order to promote Cyprus as a regional pole and the encouragement of competition in the Cypriot IT market.
Cyprus is a member of the European Telecommunications Standards Institute (ETSI) and a member of the European Conference for Postal and Telecommunications Administrations (CEPT) and follows all Standards, Decisions and Recommendations which are adopted. Cyprus is also a member of the International Telecommunication Union (ITU).
With regard to mobile services, Cyprus issued the second GSM licence in October 2003 with a due date for commencement of operation on 1 May 2004. However, owing to the continuing regulatory process, the new company was not able to start its operations until July 2004. This delay favoured the incumbent. Through the licensing process, a decision was made by the Ministry of C&W that the new entrant and the incumbent should be given the right to establish and operate 3G networks and offer relevant services within a period of 10 years from the date the GSM licences were issued. The conditions of the tender process have assured the two operators that there will not be a further granting of rights of use in this frequency band. According to the licences, this clause is to be evaluated in five years time or at the time when the new entrant gains 25 per cent market share.

Primary Legislation in the Telecommunications Sector

A. Historical Background

In April 2001, the House of Representatives enacted the Commissioner of Telecommunications and Posts (Appointment, Powers, Establishment and Operation of the Office) Law of 2001 which for the first time established the Office of the Commissioner for Telecommunications and Postal Regulation (OCTPR). The Commissioner was appointed on 2 January 2002 for a six year period and was afforded the power to grant licenses for the provision of telecommunications services and/or for the creation of telecommunications networks. However, the Law did not give the Commissioner any extensive powers regarding licensing but was intended to be an interim measure following pressure from the EU to establish a national regulatory authority.

Following this, the House of Representatives enacted the Telecommunications and Postal Services Regulation Law of 2002² on 22 March 2002. The Sections of the Law were gradually activated by the adoption of Regulations and Orders by the House of Representatives and the Council of Ministers. This Law remained in force until 29 April 2004 whereby it was replaced by the ‘Law Regulating Electronic Communications and Postal Services of 2004’3 (the ‘Electronic Communications Law’) which was adopted for the purpose of harmonising Cypriot legislation with the 2002 European telecommunications regulatory package. Nevertheless, according to Section 161 of the new law, titled ‘Transitional Provisions’, the obligations that had been imposed by the old 2002 Law on undertakings providing public electronic communications networks and/or services regarding access and interconnection remain into force until their review by the Commissioner.

Note:
2. Law No. 19(I)/2002.

B. The Electronic Communications Law

According to its preamble, the Electronic Communications Law was adopted for the purpose of harmonisation with the following acts of the European Community (the 2002 Regulatory Package):

(a)Commission Directive 88/301/EEC of 16 May 1988 on competition in the markets in electronic communications terminal equipment⁴, as amended by Commission Directive 94/46/EC of 13 October 1994.⁵
(b)Directive 98/34/EC of the European Parliament and of the Council of 22 June 1998 laying down a procedure for the provision of information in the field of technical standards and regulations.⁶
(c)Directive 1999/5/EC of the European Parliament and of the Council of 9 March 1990 on radio equipment and electronic communications terminal equipment and the mutual recognition of their conformity.⁷
(d)Directive 2002/19/EC of the European Parliament and of the Council of 7 March 2002 on access to, and interconnection of, electronic communications networks and associated facilities.⁸
(e)Directive 2002/20/EC of the European Parliament and of the Council of 7 March 2002 on the authorisation of electronic communications networks and services.⁹
(f)Directive 2002/21/EC of the European Parliament and of the Council of 7 March 2002 on a common regulatory framework for electronic communications networks and services.¹⁰
(g)Directive 2002/22/EC of the European Parliament and of the Council of 7 March 2002 on universal service and users' rights relating to electronic communications networks and services.¹¹
(h)Directive 2002/58/EC of the European Parliament and of the Council of 12 July 2002 concerning the processing of personal data and the protection of privacy in the electronic communications sector (Directive on privacy and electronic communications).¹²
(i)Commission Directive 2002/77/EC of 16 September 2002 on competition in the markets for electronic communications networks and services.¹³
(j)Directive 97/67/EC of the European Parliament and of the Council of 15 December 1997 on common rules for the development of the internal market of Community postal services and the improvement of quality of service.¹⁴
(k)Directive 2002/39/EC of the European Parliament and of the Council of 10 June 2002 amending Directive 97/67/EC with regard to the further opening to competition of Community postal services.¹⁵
(l)Regulation (EC) No 2887/2000 of the European Parliament and of the Council of 18 December 2000 on unbundled access to the local loop.¹⁶

Notes:
3. Law No. 112(I)/2004, amended by Ν. 149(I)/2005, Ν. 67(I)/2006, Ν. 113(I)/2007 and Ν. 134(I)/2007.
4. OJ L 131, 27 May 1988, p. 73.
5. OJ L 268, 19 October 1994, p. 15.
6. OJ L 204, 21 July 1998, p. 37.
7. OJ L 091 of 7 April 1999, p. 10.
8. OJ L 108, 24 April 2002, p. 7.
9. OJ L 108, 24 April 2002, p. 21.
10. OJ L 108, 24 April 2002, p.33.
11. OJ L 108 , 24 April 2002, p. 51.
12. OJ L 201, 31 July 2002, p.37.
13. OJ L 249 , 17 September 2002, p. 21.
14. OJ L 015, 21 January 1998, p. 14.
15. OJ L 176, 5 July 2002, p. 21.
16. OJ L 336, 30 December 2000, p. 4.

Later amendments of the Law were adopted for the purposes of harmonization with Regulation 733/2002/EC and 874/2004/EC concerning the .eu domain name.

C. Scope of Application of the Law and General Principles

The Law constitutes the framework for regulating Electronic Communications networks and services provided by undertakings within the territory of the Republic of Cyprus. It establishes the conditions for regulating networks and facilities required for the application of a harmonized regulatory framework throughout the European Community with the purpose of providing assistance in the convergence of the fields of electronic communications, information technology and electronic resources.

Its objectives are, inter alia, to:

(a)Create a transparent regulatory and procedural framework encouraging innovative technologies and facilitating the transition of the market towards absolute competition;
(b)Ensure and promote the provision of a wide spectrum of Electronic Communications services at a national and cross-border level;
(c)Promote effective competition and ensure that there is no abuse of a dominant market position;
(d)Describe the structure, role, funding and procedures of the Office of the Commissioner of Electronic Communications;
(e)Determine the framework of the universal service and the conditions for the provision and funding thereof;
(f)Ensure the security and interoperability of networks and services; and to
(g)Introduce an institutional framework which is in accordance with the obligations set on the basis of Community Law.

D. General Duties and Functions of the Commissioner

For the promotion of the aforementioned objectives, the Law establishes the institution of the Commissioner of Electronic Communications who, together with his Office are independent of any Ministry. The Commissioner is under an obligation to promote the interests of citizens of Cyprus and those of the European Union by ensuring, inter alia that they all have access to universal services and that there is a high level of protection for consumers in their dealings with providers.

Section 20 of the Law also affords the Commissioner certain functions and power, inter alia, to:

(a)Advise the Minister of Communications and Works on matters concerning electronic communications within the Republic,
(b)Ensure that terminal equipment fulfils the national and international standards,
(c)Prescribe quality standards for providers of electronic communications services,
(d)Grant authorisations for the creation, installation and provision of electronic communications networks and services;
(e)Prepare, update and publish the Numbering Plan of the Republic of Cyprus and set out the procedure for the assignment and use of numbers;
(f)Regulate matters in relation to domain names ending with ‘.cy’;
(g)Designate organisations with significant market power in a particular electronic communications market and impose regulatory obligations for the promotion of effective competition;
(h)Regulate access and interconnection by ensuring that they are available at suitable levels;
(i)Ensure the interoperability of services in a way that promotes efficiency, sustainable competition, and gives the maximum benefit to end-users;
(j)Prescribe electronic communications network providers as the universal service providers;
(k)Prescribe and regulate the framework of charges, including the minimum and/or maximum level of prices for the purpose of ensuring legitimate and healthy competition;
(l)Impose administrative penalties or other sanctions in relation to non-compliance with the provisions of this Law;
(m)Cooperate with National Regulatory Authorities of other Member States, as well as with international organizations and represent Cyprus at international organizations;

Licensing Regime

According to Part 8 of the Law, the Commissioner is competent for the provision of all general authorisations, other than authorisations concerning the use of radiofrequencies and the provision of individual rights of use regarding the use of numbers which fall within the competency of the Director of Electronic Communications of the Ministry of Communications and Works in accordance with the Radio-communications Laws. Nevertheless, the Commissioner is exclusively competent to grant numbering resources. The provision of electronic communications networks and services is open, subject to the conditions set out in the Law. Every undertaking may provide electronic communications networks or services in Cyprus subject to a general authorisation or, in exceptional cases, subject to the individual right to use radiofrequencies or numbers.

A. General Authorisations

An undertaking interested in providing electronic communications networks and/or electronic communications services subject to a general authorisation, may carry out such activities following the submission of a formal notification to the Commissioner. The notification must be in the form prescribed in an Order issued by the Commissioner and must include certain information concerning, inter alia, the type of network used or service to be provided and an estimated date of commencement of the activity. Following notification, the Commissioner may impose specific obligations that would have to be complied with by a provider concerning,

(a)Financial contributions to the funding of universal service;
(b)Administrative charges;
(c)Interoperability of services and interconnection of networks;
(d)Accessibility of numbers from the Numbering Plan of the Republic of Cyprus to end-users;
(e)Environmental,town and country planning requirements, including conditions linked to the granting of access to or use of public/ private land and conditions linked to co-location and facility sharing;
(f)‘Must carry’ obligations;
(g)Personal data, privacy protection and consumer protection;
(h)The transmission of illegal content;
(i)Information to be provided under a notification procedure;
(j)Enabling of legal interception of communications;
(k)Terms of use during major disasters to ensure communications between emergency services and authorities and broadcasts to the general public;
(l)The use of radiofrequencies;
(m)Access;
(n)Maintenance of the integrity of public communications networks, including obligations to prevent electromagnetic interference;
(o)Security of networks against unauthorised access;
(p)Compliance of terminal equipment and compliance with certain standards and specifications.

B. Individual Rights of Use

The granting of individual rights of use is required where the applicant needs to make use of scarce resources, such as radiofrequencies and numbers, including short codes from the Numbering Plan of the Republic of Cyprus.
The Commissioner may grant individual rights of use for numbers from the Numbering Plan of the Republic of Cyprus upon request by the interested party providing or using electronic communications networks or services. The Commissioner grants the right to use numbers and/or numbering ranges to providers of electronic communications networks and/or services for their own use and for further allocation thereof to their subscribers.

Where the provision of the said service requires the provision of an individual right to use radiofrequencies, the written request for the same must be made after the Director of Telecommunications has granted this individual right on the basis of the Radio-communications Law. The Commissioner takes into account international Numbering Regulations and ensures the efficient availability and flexibility of the Numbering Plan of the Republic of Cyprus so that the latter can facilitate the introduction of new electronic services, the permanence of numbering arrangements and the provision of rights to use numbers in a non-discriminatory and transparent manner.

The Commissioner may prohibit or limit the provision of electronic communications networks and/or services necessitating an individual right to use by a specific undertaking, only for reasons of public order, public security and public health.

The Commissioner may impose one or more of the following obligations on any person operating subject to an individual right to use numbers:

(a)Designation of the service for which the number shall be used, including any requirements linked to the provision of that service;
(b)Effective and efficient use of numbers;
(c)Number portability requirements;
(d)Obligation to provide public directory subscriber information;
(e)Maximum duration;
(f)Transfer of rights at the initiative of the right holder and conditions for such transfer;
(g)Usage fees;
(h)Any commitments, which the undertaking obtaining the usage right has made in the course of a competitive or comparative selection procedure; and
(i)Obligations under relevant international agreements relating to the use of numbers.

Provision of Access and Interconnection

A. General Principles

By virtue of Part 10 of the Law, undertakings authorised to provide electronic communications networks and/or services are free to negotiate between themselves, agreements on technical and commercial arrangements for access and/or interconnection. Nevertheless, operators of public electronic communications networks have an obligation, when requested by other authorised undertakings, to negotiate interconnection for the purpose of providing publicly available electronic communications services.

Where the negotiation of commercial arrangements for access or interconnection fails, the Commissioner may impose obligations on undertakings with respect to access to and/or interconnection of electronic communications networks and services and associated facilities for the purpose of achieving interoperability of electronic communications and for the creation of sustainable competition.
In particular, the Commissioner may impose obligations on undertakings that control access to end-users, to the extent that is necessary to ensure end-to-end connectivity, including in justified cases the obligation to interconnect their networks where this is not already the case. To the extent that is necessary to ensure accessibility for end-users to digital radio and television broadcasting services in Cyprus, the Commissioner may impose obligations on operators to provide access to the following on fair, reasonable and non-discriminatory terms, access to application program interfaces (APIs) and access to Electronic Programme Guides (EPGs).
When imposing obligations on operators to provide access, the Commissioner may lay down technical or operational conditions to be met by the provider and/or a beneficiary of such access, in accordance with Community law, where necessary, to ensure normal operation of the network. Such standards or specifications must refer to standards drawn up by the European standards organisations such as the European Committee for Standardisation (CEN), European Committee for Electro-technical Standardisation (CENELEC) or the European Telecommunications Standards Institute (ETSI)). In the absence of any such European standards, the Commissioner may refer to specific standards drawn up by international organisations such as the International Telecommunication Union (ITU).

B. Transparency

The Commissioner may impose obligations for transparency on operators in relation to interconnection and/or access, requiring them to make public, specified information, such as accounting information, technical specifications, network characteristics, terms and conditions for supply and use, and prices. In particular where an operator has obligations of non-discrimination, the Commissioner may require that operator to publish a Reference Service Offer. The Reference Service Offer must be sufficiently unbundled, giving a description of the relevant offerings broken down into components, and the associated terms and conditions for access or interconnection including prices to ensure that undertakings are not required to pay for facilities which are not necessary for the service requested.

Where an operator has an obligation to provide unbundled access to the local loop through a twisted metallic pair and associated facilities, the Commissioner must ensure the publication of the Reference Service Offer for Unbundled Local Loops.

C. Non-Discrimination

The Commissioner may also impose obligations of non-discrimination on operators, in relation to interconnection and/or access, ensuring that the operator:

(a)Provides access or interconnection applying equivalent conditions in equivalent circumstances to other undertakings providing equivalent services; and
(b)Provides services and information to others under the same conditions and of the same quality as it provides for its own services, or those of its subsidiaries or partners.

D. Accounting Separation

The Commissioner may impose obligations on operators for accounting separation in relation to specified activities related to interconnection and/or access. In particular, the Commissioner may require a vertically integrated undertaking to make distinguishable and transparent its wholesale prices and its internal transfer prices in order, inter alia, to prevent potential unfair cross-subsidy. For verifying compliance, the Commissioner may require the provision of accounting records, including data on revenues received from third parties.

E. Specific Network Facilities

The Commissioner may also impose obligations on operators to meet reasonable requests for access to, or use of, specific network elements and associated facilities, in situations where denial of access or unreasonable terms and conditions having a similar effect would hinder the emergence of a sustainable competitive market at the retail level, or would not be in the end-users' interest. For this purpose, the Commissioner may require operators:

(a)To give third parties access to specified network elements and/or facilities, including unbundled access to the local loop;
(b)To negotiate in good faith with undertakings requesting access;
(c)Not to withdraw access to facilities already granted;
(d)To provide specified services on a wholesale basis for resale by third parties;
(e)To grant open access to technical interfaces, protocols or other key technologies that are indispensable for the interoperability of services or virtual network services;
(f)To provide co-location or other forms of facility sharing, including duct, building or mast sharing;
(g)To provide specified services needed to ensure interoperability of end-to-end services to users, including facilities for intelligent network services or roaming on mobile networks;
(h)To provide access to operational support systems or similar software systems necessary to ensure fair competition in the provision of services;
(i)To interconnect networks or network facilities.

When the Commissioner is considering whether to impose the aforementioned obligations, he shall take account in particular of the following factors:

(a)The technical and economic viability of using or installing competing facilities, in the light of the rate of market development, taking into account the nature and type of interconnection and access involved;
(b)The feasibility of providing the access proposed, in relation to the capacity available;
(c)The initial investment by the facility owner, bearing in mind the risks involved in making the investment;
(d)The need to safeguard competition in the long term;
(e)Where appropriate, any relevant intellectual and industrial property rights;
(f)The provision of pan-European services.

F. Price Control and Cost Accounting Obligations

In addition to the aforementioned obligations, the Commissioner may impose obligations relating to cost recovery and price controls. In this respect the Commissioner may require that prices are cost-oriented or that there is use of a cost accounting system in the provision of specific types of interconnection and/or access. Such obligations may be imposed especially in situations where a market analysis indicates that there is a lack of effective competition enabling the operator concerned to sustain prices at an excessively high level, or to apply a price squeeze, to the detriment of end-users. In this respect, the Commissioner must ensure that any cost recovery mechanism or pricing methodology used serves to promote efficiency and sustainable competition and maximises consumer benefits.

G. Accounting Separation and Financial Reports

Operators providing electronic communications networks or services are required to keep separate accounts for the activities associated with the provision of electronic communications networks or services, to the extent that would be required if these activities were carried out by legally independent companies, so as to identify all elements of cost and revenue. In addition, they must have a structural separation for the activities associated with the provision of electronic communications networks or services. Accounts must be related to their activities associated with the provision of electronic communications networks or services, including an itemised breakdown of fixed asset and structural costs.

H. Co-location and Facility Sharing

Providers of electronic communications networks and/or services have the right to negotiate agreements for the use of and/or access to their facilities and installations by any other undertaking for collocation or facility sharing, and such agreements are a matter for commercial and technical agreement between the parties concerned.

I. Carrier Selection and Pre-Selection

Undertakings notified as having significant market power for the provision of connection to and use of the public telephone network at a fixed location must enable their subscribers to access the services of any interconnected provider of publicly available telephone services on a call-by-call basis by dialling a carrier selection code or by means of pre-selection, with a system to override any pre-selected choices on a call-by-call basis by dialling a prefix or carrier selection code. The Commissioner must ensure that pricing for access and interconnection is cost-oriented and that direct charges to subscribers, if any, do not act as a disincentive for the use of these facilities.

Rights of End Users

One of the main objectives of the Electronic Communications Law is to provide basic contractual rights to end-users and subscribers of electronic communications networks and services and a degree of freedom in the selection of service providers. Such rights supplement the rights provided in any other way on the basis of general consumer protection legislation and are additional to rights afforded to them under Universal Service obligations.

A. Transparency and Publication of Information / Quality of Service

On the basis of the above objective, the Commissioner must ensure that end users and consumers have available, transparent and up-to-date information on applicable prices and tariffs, as well as standard terms and conditions in respect of access to and use of telephone services provided. In this way end-users and consumers are able to make an independent evaluation of the cost of alternative usage patterns and the quality of services offered. For this purpose, the Commissioner may specify the quality of service parameters to be measured, and the content, form and manner of information to be published.

B. Integrity of the Network

The Commissioner may also require undertakings providing public telephone networks to take all necessary steps to ensure the integrity of the public telephone network at fixed locations and, in the event of catastrophic network breakdown or in case of force majeure, the availability of the public telephone network and publicly available telephone services at fixed locations. Furthermore, the Commissioner must ensure that undertakings providing publicly available telephone services at fixed locations take all reasonable steps to ensure uninterrupted access to emergency services.

C. Number Portability

An undertaking that provides publicly available telephone services, including mobile services, must ensure that subscribers of such services may if they so request, retain their number independently of the undertaking providing the service in the case of geographic numbers, at a specific location and, in the case of non-geographic numbers, at any location. This provision does not apply to the porting of numbers between networks providing services at a fixed location and mobile telephony networks.

Secondary Telecommunications Legislation

The Law on Electronic Communications empowers the Commissioner of Electronic Communications to issue any relevant secondary measure – regulation, order or a decision – which is needed for the proper exercise of the tasks assigned to it in law. There are a number of provisions in the law which already define the need to issue secondary measures in several fields: granting of individual rights of use for numbers; market analysis; universal service, in particular the financing of the service; access and interconnection; minimum elements of the Reference Unbundling Offer; consumer protection issues; dispute resolution; data gathering process; community consultation.

The law also provides for a transitional provision which lays down that secondary legislation adopted on the basis of the previous law – intended to transpose the 1998-2000 regulatory framework – still applies until the secondary measures of the current law have been adopted. This fact, however, does not necessarily ensure that a number of instruments introduced in the National Regulatory Framework – for instance issues related to market analysis and procedural requirements – are necessarily put in place. In the absence of the necessary secondary legislation, the transposition of the National Regulatory Framework appears to be incomplete, and the Commission services will continue to follow this issue.¹⁷
It is also interesting to note the direct power afforded by Part 18 of the new Law to the Commissioner to issue secondary legislation in the form of Orders for the purpose of applying Regulations of the European Community concerning electronic communications matters.

Regulations

The following are some of the Regulations adopted by the Council of Ministers on the basis of the Law Regulating Telecommunications and Postal Services of 2002:

(a)The Administrative (Telecommunications) Licence Fees Regulations of 2002¹⁸ which apply to the licence fees concerning the individual licences and general authorisations;

Notes:
17. European Electronic Communications Regulation and Markets 2004 (10th report); available from http://europa.eu.int/information_society/topics/ecomm/all_about/implementation_enforcement
/annualreports/10threport/index_en.htm; accessed 1 May 2005.
18. Issued 31 December 2002.

(b)The Calculation of (Telecommunications) Interconnection Fees of 2002¹⁹ which apply to the calculation of fees for interconnection services provided by Obligated Providers that have been notified by the Commissioner as having significant power in the market for fixed public networks, and/or the market for mobile public networks,
(c)The General Authorizations and Individual Licenses (Telecommunications) Regulations of 2002²⁰ as amended which apply to any Individual License and General Authorization granted by the Commissioner for the creation, establishment, operation, management, exploitation and provision of telecommunications networks and services;
(d)The Interconnection Agreements (Telecommunications) Regulations of 2002²¹ applying to the determination of the categories of public providers of telecommunications networks and services providers having the right and obligation to interconnect with other Organisations. The Regulations also set out the matters to be included in interconnection agreements;
(e)The Public Hearings Regulations of 2002,²² concerning the reaching of decision by the Commissioner with regards to the regulation of the framework of charges and fees set by public providers of electronic communications networks and services as well as for prescribing the licensing framework;
(f)The Quality of (Telecommunications) Services Regulations of 2002,²³ which apply to the quality of service specifications of providers of public telecommunications networks and/or public telecommunications services,
(g)The Collection of Information and Endorsement of Administrative Fines Regulations of 2003,²⁴ concerning the power of the Commissioner to collect information on his own initiative or following the submission of a complaint, his power to carry out investigations and the power to impose administrative fines where he ascertains a possible violation of the provisions of the Law;
(h)The Leased Lines (Telecommunications) Regulations of 2003,²⁵ applying to the provision and pricing of leased lines by Obligated Organisations (CYTA) and, in particular, to the determination of their relevant obligations. Furthermore, these Regulations apply to any type of leased lines provided by CYTA, voluntarily or by virtue of an obligation according to the legislation and regardless of the geographical territory concerned. These Regulations do not limit, amend or replace any obligations of CYTA with regard to any type of leased lines for which additional obligations are provided under the legislation or CYTA’s Reference Interconnection Offers.
According to these Regulations, CYTA must provide to all users on request, open and effective access, and use of leased lines. CYTA’s fees for the provision of leased lines must be cost-oriented, increased by a reasonable rate of return on investment that may not be higher than the average return on capital for CYTA’s total activities corresponding to the business sector of its retail sales.
(i)The Determination of the Net Cost of the Universal Telecommunications Service (Telecommunications) Regulations of 2003,²⁶ applying to the calculation of the net cost of providing the universal telecommunications service, for the purpose of compensating the providers of the universal telecommunications service (CYTA) by means of an appropriate funding mechanism.

Notes:
19. Issued 31 December 2002.
20. P.I. 659/2002, issued 31 December 2002, as amended by Order P.I. 880/2003 of 5 December 2003.
21. Issued 31 December 2002.
22. Issued 31 December 2002.
23. Issued 31 December 2002.
24. Issued 24 April 2003.
25. Issued 24 April 2003.
26. Issued 24 April 2003.

According to these Regulations, the net cost of providing the universal telecommunications service may be attributed solely to the provision of any or all of the following services:
(i)Connection of end-users to the public fixed telephone network and publicly available fixed telephone services for the purpose of placing basic telephony calls covered by the definition of the universal telecommunications service; and
(ii)access to public pay phones, emergency call centres supporting emergency telephone numbers, free calls to certain numbers, operator assistance, directories and directory services, special tariffs for services or equipment for users with special needs, and any other obligation that may be imposed from time to time on CYTA as part of their universal telecommunications service obligation.
(j)The Numbering (Telecommunications) Regulations of 2003 to 2004,²⁷ applying to the terms and conditions for the assignment and use of numbers and the rights and obligations of telecommunications organisations with respect to number portability and carrier pre-selection. According to these Regulations, any natural or legal person is entitled to request and obtain the primary assignment and/or reservation of numbering resources by the Commissioner, and to same according to specific licence terms, subject to certain conditions concerning (a) the availability of numbering resources from the Numbering Plan of the Republic, suitability of the intended use and payment of relevant fees.
(k)The Designation of (Telecommunications) Special Network Access Fees of 2003,²⁸ concerning access to network termination points of a telecommunications network that (a) does not constitute interconnection and (b) is not covered by a case of unbundled access to the local loop or a relevant service regulated specifically by the Law and/or Regulations and Orders issued under it and (c) does not consist of access to network termination points offered to the majority of users;
(l)The Telecommunications Terminal Equipment (Telecommunications) Regulations of 2003,²⁹ regulating the procedures for the assessment of the conformity of telecommunications terminal equipment to certain essential requirements;
(m)The Calculation of Costs and Fees for the Unbundled Access to the Local Loop (Telecommunications) Regulations of 2003³⁰ which apply to the determination of the costs and fees concerning the provision of unbundled access to the local loop by notified operator

Orders

The following is a list of Orders adopted by the Commissioner of Telecommunications and Postal Regulation on the basis of the Telecommunications and Postal Services Regulation Law of 2002 as this has been replaced by the Electronic Communications Law:

(a)The National Roaming (Telecommunications) Order of 2002³¹ applies to the rights and obligations of the providers of public mobile telecommunications networks with respect to the national roaming service.

Notes:
27. P.I. 329/2003 issued 24 April 2003, as amended on 21 November 2003 by P.I. 850/2003, as amended on 8 April 2004 by P.I. 205/2004 and on 8 October 2004 by P.I. 736/2004 on the basis of the Electronic Communications Law.
28. Issued 24 April 2003.
29. Issued 24 April 2003.
30. Issued 24 April 2003.
31. P.I. 564/2003.

(b)The Universal Telecommunications Service (Telecommunications) Order of 2003³² as amended in 2004³³ for the purpose of harmonisation with Directive 2002/22/EC of the European Parliament and of the Council of 7 March 2002 on universal service and users' rights relating to electronic communications networks and services (Universal Service Directive),³⁴ designates the provider of the universal telecommunications service (CYTA) and the services that comprise the universal telecommunications service.
(c)The Basic Level of Itemised Bills Order of 2003,³⁵ concerning Obligated Organisations that must provide the Basic Level of Itemised Billing to their subscribers, free of charge. The Order also applies to subscriber lines connected with digital and/or analogue centres where this is technically and financially feasible.
(d)The Co-location Agreements and Facility Sharing Order of 2003³⁶ applies to agreements for the co-location of telecommunications equipment and shared use of related facilities by the providers of public fixed and/or mobile telecommunications networks and public fixed wireless access telecommunications networks.
(e)The Maximum Level of Free Phone Service Fees Orders of 2003,³⁷ concern CYTA as the Public Telecommunications Service Provider that has been notified as having significant market power in the voice telephony and mobile telephony market and which provides access to free phone services, of which the maximum level of fees is prescribed by this Order. The Order also applies to calls emanating from the Fixed and Mobile Telephony Network of CYTA, which provides access to a free phone telecommunications service.
(f)The Determination of the General Authorization Regime Order of 2003,³⁸ which applies to the determination, by the Commissioner, of the type or types of telecommunications activities subject to General Authorization and the conditions attached thereto.
(g)The Leased Lines (Telecommunications) Order of 2003³⁹ regulates the publication of information in relation to leased lines and concerns the Commissioner’s decisions concerning the refusal or interruption of the provision of leased lines or the reduction of the availability of their features.
(h)The Number Portability (Telecommunications) Order of 2003 to 2004⁴⁰ applies to the number portability between Obligated Organisations and, in particular, to geographic portability, non-geographic portability, and mobile number portability.
(i)The Determination of Organisations with Significant Market Power Order of 2003⁴¹ applies to the determination, by the Commissioner, of Organisations as having significant market power. By this Order, the Cyprus Telecommunications Authority is defined as an Organisation with significant market power in the market for voice telephony, fixed public networks, mobile telephony, mobile public networks, interconnection and the market for leased lines.

Notes:
32. P.I. 4/2003.
33. P.I. 13/2004.
34. Official Journal L 108, 24 April 2002, pp. 51--77.
35. N.d.; Available from http://www.octpr.org.cy/octpr_infoDocs_page.htm; accessed 27 March 2005.
36. P.I. 566/2003.
37. P.I. 2/2003 and P.I. 7/2003.
38. N.d.; Available from http://www.octpr.org.cy/octpr_infoDocs_page.htm; accessed 27 March 2005.
39. P.I. 544/2003.
40. P.I. 565/2003 as amended by Order P.I. 206/2004 of 8 April.2004.
41. N.d.; Available from http://www.octpr.org.cy/octpr_infoDocs_page.htm; accessed 27 March 2005.

(j)The Funding of the Universal Telecommunications Service (Telecommunications) Order of 2003 applies to the funding of the net cost of providing the universal telecommunications service.
(k)The Orders Amending CYTA’s Reference Interconnection Offer of 2003.⁴²
(l)The Prescription of the Maximum Fee for the Free Phone Service Order of 2003,⁴³ concerns CYTA as the Public Telecommunications Services Provider that has been notified as having significant market power in the voice telephony and the mobile telephony market that provides access to free phone services, of which the maximum level of fees is specified by these Regulations.
(m)The Determination of Organisations with Significant Market Power in the International Leased Lines (Wired) market in the form of semi-circuits towards Greece and Israel (Telecommunications) Order of 2003,⁴⁴ applies to the determination by the Commissioner of CYTA as an Organisation with Significant Market Power in the specific market.
(n)The Unbundled Access to the Local Loop (Telecommunications) Order of 2003,⁴⁵ prescribes the date from which notified operators shall be required to provide unbundled access to their local loop.
(o)The Reference Offer Information (Telecommunications) Order of 2003,⁴⁶ applies to the determination, by the Commissioner of the content of the Reference Offer of notified operators for unbundled access to their local loop.
(p)The Prescription of the Maximum Fee for Leasing International Leased Lines (Wired) in the form of 2 Mbps rate Semi-circuits towards Greece and Israel (Telecommunications) Order of 2003.⁴⁷
(q)The Determination of the Framework for Retail Prices (Telecommunications) Order of 2004,⁴⁸ as this has been repealed and replaced by the Determination of the Framework for Retail Prices Order of 2005, issued on the basis of the Electronic Communications Law.⁴⁹
(r)The Determination of the Maximum One-off Installation Fee and Maximum Fee for Charging Leased Lines of 2 and 34 Mbps Transmission Rate for the following Types: A Interconnection Leased Lines and Β: LLPC (Leased Line Part Circuits) (Telecommunications) Order of 2004.⁵⁰
(s)The Administrative Charges (Electronic Communications) Order of 2004,⁵¹ for the purpose of harmonisation with Directive 2002/20/EC of the European Parliament and of the Council of 7 March 2002 on the authorisation of electronic communications networks and services (Authorisation Directive).⁵²
(t)The Numbering (Electronic Communications) Order of 2004.⁵³
(u)The Licensing (Electronic Communications) Order of 2004.⁵⁴

42. P.I. 5/2003, issued on 25 July 2003, P.I. 6/2003, issued on 10 October 2003 and P.I. 10/2003 issued on 5 December 2003.
43. N.d; Available from http://www.octpr.org.cy/octpr_infoDocs_page.htm; accessed 27 March 2005.
44. P.I. 8/2003, issued on 7 November 2003.
45. P.I. 851/2003, issued on 21 November 2003.
46. P.I. 852/2003, issued on 21 November 2003.
47. P.I 9/2003, issued on 5 December 2003.
48. P.I. 3/2004, issued on 13 February 2004.
49. P.I. 1/2005 and 2/2005 issued in January 2005.
50. P.I. 7/2004, issued on 8 April 2004.
51. P.I. 849/2004, issued on 17 December 2004.
52. Official Journal L 108, 24 April 2002, pp. 21--32.
53. P.I. 850/2004, issued on 17 December 2004.

(v)The Legal Entities (Ensuring Legitimate Interests with respect to Automated Calls) Order of 2005,⁵⁵ concerning harmonisation of Cypriot legislation with Directive 2002/21/EC of the European Parliament and of the Council of 7 March 2002 on a common regulatory framework for electronic communications networks and services (Framework Directive)⁵⁶ and Directive 2002/58/EC of the European Parliament and of the Council of 12 July 2002 concerning the processing of personal data and the protection of privacy in the electronic communications sector (Directive on privacy and electronic communications).⁵⁷
(w)The Legal Entities (Listing of Data in Public Telephone Lists) Order of 2005.⁵⁸
(x)The Determination of the Quality of Electronic Communications Services Provided Order of 2005,⁵⁹ issued for the purpose of harmonisation with Directive 2002/22/EC of the European Parliament and of the Council of 7 March 2002 on universal service and users' rights relating to electronic communications networks and services (Universal Service Directive).⁶⁰
(y)The Determination of Market Analysis Procedures for Electronic Communications Order of 2005,⁶¹ concerning the setting up of procedures for analysing the level of competition within the electronic communications market for the purpose of imposing regulatory measures therein.

Decisions

In addition, certain Decisions were adopted by the Commissioner of Telecommunications and Postal Regulation on the basis of the Telecommunications and Postal Services Regulation Law of 2002 as this has been replaced by the Electronic Communications Law, including the following:

(a)The Introduction of an Intermediary Solution for the Application of Number Portability (Telecommunications) Decision of 2004.⁶²
(b)Guide to Publishing Technical Interface Specifications 3/2004⁶³ provided by electronic communications providers, regulating the obligation of electronic communications network providers to publish, and to have readily available and updated, accurate and adequate Specifications for all Interfaces provided by them before services provided through interfaces become accessible to the public.
(c)Decision No. 5/2004, by virtue of s.12 of the National Roaming Order⁶⁴ concerning a request submitted by Scancom (Cyprus) Ltd for the intervention of the Commissioner and the initiation of a dispute resolution procedure for the purpose of concluding a National Roaming Agreement with CYTA.
(d)Decision No. 7/2004 with respect to an investigation carried out by the Electronic Communications Commissioner concerning the unsuitable use by CYTA of the four-digit commercial use number 1818, issued on the basis of the Electronic Communications Law.⁶⁵

Notes:
54. P.I. 850/2004, issued on 17 December 2004.
55. P.I. 34/2005 issued on 28 January 2005.
56. Official Journal L 108, 24 April 2002, pp. 33--50.
57. Official Journal L 201, 31 July 2002, pp. 37--47.
58. P.I. 35/2005 issued on 28 January 2005.
59. P.I. 74/2005, issued on 18 February 2005.
60. Official Journal L 108, 24 April 2002, pp. 51--77.
61. P.I. 147/2005 issued on 24 March 2005.
62. P.I. 343/2003, issued on 30 April 2004.
63. P.I. 626/2004, issued on 25 June 2004.
64. Issued on 13 August 2004 by virtue of P.I 564/2003.
65. Issued on 30 December 2004.


(e)Temporary Decision No. 11/2004 with respect to the provision of free speech time to CYTA’s new mobile telephony service customers, issued on the basis of the Electronic Communications Law.⁶⁶
(f)Decision No. 2/2005 on the Determination of the Framework for Retail Prices Order of 2005, issued on the basis of the Electronic Communications Law.⁶⁷
(g)The Methodology for Defining Electronic Communications Markets Decision of 2005.⁶⁸ The Decision prescribes the methodologies to be adopted by the Electronic Communications Commissioner for defining relevant markets with the electronic communications sector, as well as for determining the level of competition in the said market.

Radio-communications Legislation

The management of the radio frequency spectrum is under the responsibility of the Director of Electronic Communications (formerly the Director of Telecommunications) of the Ministry of Communications and Works, who is the government's advisor on telecommunications policy matters. The Director is responsible for all radio communications matters including satellite communications, broadcasting and other wireless communications.

A.The Radio-communications Law

The Radio-communications Law of 2002⁶⁹ was enacted by the House of the Representatives in 2002 for the purpose of harmonising Cypriot legislation with the following acts of the European Community:

(a)Council Directive and Corrigendums 87/372/EEC of 25 June 1987 on the frequency bands to be reserved for the coordinated introduction of public pan-European cellular digital land-based mobile communications in the Community,⁷⁰
(b)Council Directive 90/544/EEC of 9 October 1990 on the frequency bands designated for the coordinated introduction of pan-European land-based public radio paging in the Community,⁷¹
(c)Council Directive 91/287/EEC of 3 June 1991 on the frequency band to be designated for the coordinated introduction of digital European cordless telecommunications (DECT) into the Community,⁷²
(d)Decision No 710/97/EC of the European Parliament and of the Council of 24 March 1997 on a coordinated authorization approach in the field of satellite personal-communication services in the Community,⁷³

Notes:
66. Issued on 10 December 2004.
67. P.I. 1/2005 and 2/2005 issued in January 2005.
68. P.I. 148/2005 issued on 24 March 2005.
69. Law No. 146(Ι)/2002 as amended by Law No. 16(I)/2004 and Law No. 180(1)/2004.
70. O.J. L 196, 17 July 1987, p. 85, O.J. L 207, 29 July 1987 p. 31, O.J. L 265, 16 September 1987, p. 15.
71. O.J. L 310, 9 November 1990, pp. 28--29.
72. O.J. L 144, 8 June 1991, pp. 45--46.
73. O.J. L 105, 23 April 1997, p. 4.


(e)Directive 97/13/EC of the European Parliament and of the Council of 10 April 1997 on a common framework for general authorizations and individual licences in the field of telecommunications services,
(f)Decision No 1999/128/EC of the European Parliament and of the Council of 14 December 1998 on the coordinated introduction of a third-generation mobile and wireless communications system (UMTS) in the Community,⁷⁴
(g)Directive 1999/5/EC of the European Parliament and of the Council of 9 March 1999 on radio equipment and telecommunications terminal equipment and the mutual recognition of their conformity.⁷⁵
The Law was later amended in 2003, 2004 and 2006⁷⁶, for the purpose of affording the power to the Director of Electronic Communications to issue Regulations in order to adopt Directives 97/13/EC and 1999/5/EC. Further amendments in 2004⁷⁷ were aimed at harmonising the legislation with, inter alia:

(a)Directive 2002/21/EC of the European Parliament and of the Council of 7 March 2002 on a common regulatory framework for electronic communications networks and services (Framework Directive),78 and
(b)Directive 2002/20/EC of the European Parliament and of the Council of 7 March 2002 on the authorisation of electronic communications networks and services (Authorisation Directive).

This amending Law introduces a new licensing regime whereby individual licences become obsolete and a new type of general authorisations and individual rights of use is adopted. Within this context, the Director of Electronic Communications is granted the power to grant general authorisations to a class or group of persons for the use of a radiofrequencies that do not cause harmful interference. The Director is also responsible for granting individual rights to use radiofrequencies subject to certain obligations in relation to the activities of the licensed enterprise. Individual rights for the use of radio frequencies are granted where the danger for causing harmful interference from the said usage is not negligible.

B. Functions of the Regulatory Authorities

The Minister of Communications and Works and the Director of Electronic Communications of the Ministry have competence over all matters regarding radio-communications in the Republic. The Minister is responsible for forming the policy framework with respect to radio-communications and for ensuring the efficient use of the radiofrequency spectrum in the Republic, while the Director is responsible for implementing the said policy. Within this framework, the Minister and the Director have the duty to promote:

(a)The use of radio communications in the Republic for the benefit of the public in general;
(b)The interests of consumers, with particular reference to prices and quality of radio communications provided;
(c)The efficient and fair management and use of the radio spectrum, the avoidance of harmful interferences or matters of public health; and
(d)The availability of the spectrum to a wide range of organisations and users.

Apart from forming the general policy framework, the Minister is also responsible for approving a plan for the allocation and usage of radio frequency spectrum in the Republic, for ordering the closedown of radio stations and for suspending or terminating licences.

Notes:
74. O.J. L 017, 22 January 1999, p. 1.
75. O.J. L 091, 7 April 1999, p. 10.
76. Law Νo. 15(Ι)/2003, Ν. 16(I)/2004, Ν. 180(I)/2004 and Ν. 74(I)/2006
77. Law No. 16(I)/2004 and Law No. 180(1)/2004.
78. O.J. L108, 24 April 2002, pp. 33--50.

On the other hand, the Director’s responsibilities consist in, inter alia, developing and maintaining the plan for the allocation and usage of the radio frequency spectrum in the Republic, granting, modifying, suspending and terminating licences and imposing licence terms, ensuring that radio equipment fulfils certain requirements and preventing harmful interferences.

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