CyTA bows to court order on rates

THE country’s largest telecom company, CyTA, yesterday announced its decision to comply with a court order to return to previous mobile phone rates, though the new higher rates will not come into effect until September 9.

The Nicosia court last Friday ordered CyTA to comply with a Competition Commission interim order to bring mobile rates back up to pre-April levels after mobile competitor Areeba charged the telecom giant with abusing its position in the marketplace.

The Commission deemed in a preliminary decision that CyTA was trying to squeeze prices and muscle Areeba out of the market.

CyTA must now return to previous rates of six cents a minute for mobile to mobile and five cents a minute for mobile to land line. After twice resisting orders to increase its rates, CyTA’s board yesterday agreed to comply with the court order.

However, by law, CyTA is obliged to give its customers one month’s notice, so the new rates will apply from September 9. The new rates might never come into effect, as CyTA will use the month to contest the court order.

“CyTA will exhaust all measures to annul the interim order of the Competition Commission and the court order and return the rates to the reduced levels existing after April 1,” said a CyTA announcement.

The semi-government organisation said it was confident it would win its battle to maintain low rates. In a move certain to upset the aggrieved Areeba, CyTA has pledged to credit any difference paid by customers if the court agrees to drop the rates back to post-April levels.

However, only customers who continue to use the services of CyTA will have access to that credit since CyTA will not be giving out refunds.

In effect, consumers switching to Areeba will not have the chance to enjoy the credit return on the price differentials should CyTA win its argument in court.

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