By Maria Gregoriou
THE TWO existing mobile network operators, semi-state CyTA and privately-owned MTN have united in their opposition to a third operator, citing the small size of the island’s market.
Acting on EU instructions, the communications ministry has recently invited tenders for a third licensce.
“Cyprus is the last country to start the tender process,” Communications Minister Tasos Mitsopoulos said. “Even Malta, which is smaller, has already gone through the procedures.”
CyTA and MTN however, argued that the market was too small to sustain three providers and it would not be adding any benefits for consumers.
“Under the licence conditions investment must be made in equipment. The question is whether these costs will be passed on to the consumer,” said CyTA spokesman Lefteris Christou.
Due to the small market another competitor will take clients away from the existing operators. “Our costs will not increase but we may lose clients to the new competitor,” Christou added.
A third provider could also create technical problems, resulting in lower quality service, the semi-state company said.
CyTA’s mobile connections in areas close to the buffer zone are already affected as there are two mobile network operators in the north.
“Our network sometimes gets crisscrossed with theirs, leading to a break-down in mobile connections.” Christou said.
The licence differs from that of a mobile virtual network operator (MVNO) which can buy services from CyTA or MTN.
PrimeTel, a private telecommunications carrier, is an MVMO in Cyprus.
MTN cannot see a reason for a third operator.
An MTN spokesperson said: “we do not consider that any additional entry will enhance consumer benefits in any way.
Under the current hobbling economy, consolidation is the dominant theme in the sector.”
MTN said a new entry into the marker is likely to harm the investment plans of current operators rather than provide any consumer benefit.
As prices are among the lowest in Europe and technology is at a high standard, consumer needs are already satisfied.