Lewes, DE -- (SBWIRE) -- 02/28/2014 -- Cyprus’s telecoms market continues to be dominated by the government-owned incumbent. Nevertheless, improved regulatory conditions, particularly in relation to network interconnection and access, has given competing operators the confidence to invest in network infrastructure, unbundle local loops and launch competing services.
The broadband market remains undeveloped by European standards. DSL is the most popular access platform, with cable broadband restricted to a single operator with a network concentrated in a few key towns. Ongoing investment in DOCSIS3.0 technology may encourage churn from DSL networks in the cable footprint areas, given the relatively slow speed of current DSL options. Alternative DSL operators have taken advantage of regulated wholesale network access, resulting in a steady fall in the incumbent’s broadband market share. Growing broadband usage, supported by government policy, is shaping Cyprus’s emerging internet society.
The Cypriot mobile market is served by two mobile network operators (Cytamobile-Vodafone and MTN Cyprus), which have both launched 3G and HSPA services. A third operator, PrimeTel Mobile, launched operations as an MVNO in mid-2011, and in early 2014 was awarded a multi-spectrum licence. Thus far the operator has only a small market share, but it is expected to invest as an MNO in its own right and place greater competitive pressure on other players. Given the saturated voice market, mobile operators have focussed on lifting ARPU by encouraging prepaid subscribers to migrate to postpaid plans and to take up mobile broadband services and content.
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