THE CYPRUS Telecommunications Authority (CyTA) has been slapped with a £50,000 fine for denying competitors access to directory listings in violation of the law.
It was the latest case of the telecom giant having its arm twisted by authorities; CyTA is also bracing itself for a decision – expected today – by the Competition Commission on whether it abused its dominant market position by lowering mobile telephony rates.
Telecoms Regulator Vasos Pyrgos yesterday told the Mail that his office found CyTA guilty of not sharing phone listings with other operators. The matter was brought to his attention after Telepassport lodged a complaint late last year.
On investigating the matter, the regulator found that CyTA failed to give its four competitors adequate information on its 192 service even though it was obliged to do so following the liberalisation of the telecoms market.
For example, for the entry “Nicosia municipality,” Telepassport claimed that CyTA gave them only one central phone number, while CyTA itself had in its database a whole list of sub-listings under that entry, including the mayor’s office, cultural services and fax numbers.
The allegations were proved true during a “raid” by agents of the Telecoms Regulator at CyTA offices. Typing in a number of keywords, they found that CyTA was holding out on other operators – big time.
Take the phone number for the Bank of Cyprus; CyTA possesses the numbers for all the branches, the fax numbers, full addresses and post codes. Yet Telepassport only had access to a central telephone number for the bank.
It did not take the Telecoms Regulator long to figure out that CyTA was using ploys to gain an unfair advantage over its competitors.
In its defence, CyTA stated it did not break any laws because it had provided other operators with the minimum necessary data it was obliged to.
And as a “goodwill gesture,” the organisation promised to supply additional information in the future, which it did shortly after.
Authorities were unimpressed by the move.
“In our interpretation of the laws, CyTA should have shared everything from the outset,” Pyrgos said.
“It does not matter that they subsequently took corrective measures, although this was somewhat taken into consideration in determining the amount of the penalty.”
CyTA now has 75 days in which to appeal the decision with the Supreme Court. A spokesperson for the organisation yesterday told the Mail that they had not “yet looked at the issue in earnest.”
The Telecoms Regulator has been on CyTA’s case for some time now. Back in December, Pyrgos told the Finance Committee that despite liberalisation, CyTA still held a massive 93.5 per cent of the mobile market, 97 per cent of landline telephony and 94 per cent of Internet customers.
Pyrgos then used harsh language to criticise CyTA for not allowing new players to enter the market, pointing out that while prices were increasing in all other areas of the economy, the cost of telephone calls had dropped by 17 per cent.
He said it was no wonder a major international player like OTEnet had decided not to proceed with new investments to penetrate the market.
Competitors are angry at what they see as CyTA’s attempt to retain its monopoly by allegedly using unfair practices.
Testimony to this is the fact that most of the complaints pending before the Competition Commission refer to alleged trade abuses by CyTA filed by the likes of Areeba, Thunderworx, OTEnet, CALLSat, Telepassport and other telecom service providers in the areas of fixed telephony and Internet services.
The fact that CyTA has been operating in a monopolistic environment for 60 years has allowed it to win over the trust of the public and with 100 per cent presence in all areas of Cyprus with respect to its antenna network, it has a better reception than new entrants like Areeba.
The EU has criticised Cyprus regarding the difficulties imposed on Areeba with respect to the installation of its antennas as the island’s alternative mobile operator attempts to penetrate the market.
Pyrgos also lashed out at CyTA for filing recourses to the courts for every decision made by the Telecom Regulator’s office, as well as the fact that CyTA has the financial muscle to promote its services.
“For every single column advert placed by an independent, CyTA splashes a full page, driving the private companies out of the market,” he said.
Pyrgos further said the fact CyTA was state-owned and had no shareholders meant that any fines paid to the government is in effect money given back to the shareholder. Therefore there would be no outcry in the event of a penalty.
DIRECTORY CALL RATES:
1. Thunderworx Ltd (as of 20 January): dial 11800; charges: 14 cents from landline, 16 cents from mobile
2. Infote Ltd: dial 11822; charges: 14 cents from landline, 18 cents from mobile plus 0.15 cents per second
3. CallSat Ltd: dial 11833; charges: 17 cents from landline and mobile
4. Telepassport Ltd: dial 11888; charges: 14.8 cents from landline, 15.8 cents from mobile
5. CyTA: dial 11892; charges: 18.8 cents from landline and mobile
