Cyprus households set for high-speed internet
Cyta launches multi-million fiber optic network project Lagging in e-government Cablenet and Primetel
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Cyprus households will be able to get high speed internet connections reaching 1 Gbps as the Cyprus Telecommunications Authority (Cyta) launches a project to connect everyone to a fiber optic system over the next four years.
Cyta has launched a EUR 120 mln project to build a fiber optic system which will replace entirely the current copper network, bringing a fiber optic cable from their hub to our homes.
The current network is made up mainly from copper cables which carry electrical signals from and to consumers and businesses.
Fiber optic cables on the other hand will be able to reach ten times faster speeds as electronic signals will be travelling at the speed of light. Fiber optic cables are made from glass through which information is transferred essentially in the form of light. Fiber optic technology which has been around since the ’80s, is considered to be the future of digital technologies.
Cyta aims to create a fiber optic network that makes optical fiber connection available to the vast majority of businesses and homes in Cyprus.
“This is the largest telecommunication infrastructure project in Cyprus,” said Cyta spokesperson Ioanna Constantinou.
Although, technically, anyone could opt to have to a fiber optic connection, only companies have taken that option as costs are too high.
Cyta, Cablenet and Primetel have packages for companies that need high speeds to conduct their business via fiber optics. Price depends on availability and location.
Cyta is pushing ahead with the project with pilot trials in certain areas of Nicosia only.
Constantinou said the project is of national importance as it is the biggest upgrading of the telecommunications infrastructure.
“New generation electronic communication infrastructures are one of the prerequisites for the transition of Cyprus to the digital age, part of which is also the digital economy,” she said.
“Digital Transformation brings us closer to technology and new groundbreaking applications that make our day-today life better, the way our businesses operate, and the way we serve state actors.”
Constantinou said the project will ensure that the country will achieve the objectives set by the EU’s Digital Agenda for 2020, according to which all citizens should be able to have internet connections in their homes of at least 30 Mbps.
“It will also lay the ground for Cyprus to achieve the even more ambitious goals of the EU for 2025, which foresees that every citizen will be able to have connections of at least 100 Mbps.”
A fiber optic network is necessary for the implementation of 5G mobile internet technology.
According to a European Commission decision by 2020, at least one 5th generation pilot network must be installed in an urban centre in each member-state.
Cyta’s fiber optic network is to be eventually connected to every household and business in the country, first urban areas and the countryside by 2028.
George Komodromos, head of the Department of Electronical Communications (DEC) at the Ministry of Transport, said that according to surveys made by institutions like the International Monetary Fund, an increase in internet connection speed has a positive impact on the economy.
“Increasing speeds by 8-10 times, the GDP of a country is expected to grow by at least 1.5%. Higher speeds will not only facilitate and give a push to transactions and sales made online but will also push companies to come up with new innovative products”.
Do Cypriots care about high speeds?
While the introduction of a high-speed network seems to be essential for the digitalisation of the country, Cypriots do not seem to care much for a high-speed network.
According to the Digital Economy and Society Index (DESI) report prepared by the European Commission, “79% of the Cypriot population used the internet regularly (versus
74% in 2016), but only 50% possessed at least basic digital skills”.
When it came to use of the internet, users in Cyprus were found to engage in a wide range of online activities, such as reading news online, listening to music, watching films and playing games, using the internet to communicate via voice or video calls and participating in social networks.
Constantinou said these activities are demanding more and more speed as files get bigger and with higher resolution.
“News sites have become more visual with the use of videos and graphics,” said Cyta’s spokeswoman, while the authority’s promotional campaign focusses on these activities.
Their recent TV advert focuses on users being able to upload and download photos, songs and video in in just fractions of a second, play their favourite online games at incredible speeds with shorter standby times and watch movies and sport, with incredible picture quality.
Picking up on this, Komodromos said that the argument that Cypriots are not interested in high speeds may not be a valid one, as he finds that Cypriots are more put off by the high-priced bundles offered by providers.
“Whereas in the European Union a 100 Mbps connection costs the consumer an average of EUR 35, the cheapest price a consumer can find is EUR 60 here,” said Komodromos.
“According to the DESI report only 9% of households have an internet connection with speeds higher than 30 Mbps, while just 0.6% of households have connection of 100 Mbps and higher,” he added.
He said that if Cypriots were offered high speed connections at prices found in the EU, he does not think Cypriots would be left unmoved.
Komodromos said that coupled with the lack of internet knowhow, Cypriots’ experience with low speed connection is taking its toll on progress made in e-commerce and egovernance.
“According to the report only 34% of Cypriots use eBanking and 39% have shopped online. Adding to this, Cyprus continues to remain below the EU average in digital public services however it noted progress compared to last year, scoring 58, while the EU average is 53,” he said.
The government hopes to broaden e-governance with the introduction of new online services.
“The cabinet has approved a budget on EUR 250 mln for the promotion of projects which will enhance e-governance in Cyprus, from digitising hospitals and other public records, to digitizing all applications to state departments” Komodromos said.
The head of the DEC said that the government is promoting the issue of an electronical signature, a unique code given to each citizen, to facilitate dealings with the state.
Things will rapidly change over the coming years said Komodromos, acknowledging that Cypriots will need to be prepared and educated on how to cope in the new digital era.
“According to DESI only 50% of internet users in Cyprus have basic internet skills. As Department of Electronical communications, we will spend EUR 200,000 on programs aimed at educating citizens on how to cope in the digital era through campaigns and free lessons,” said Komodromos.
His department in collaboration with the state, are looking into ways of financing households who will install connections of 100 Mbps.
Acknowledging that technology behind telecommunications is constantly evolving, at an everincreasing pace, telecom companies in Cyprus are trying to stay in the game by investing in networks.
“Any company in the telecom sector that fails to keep up with this technology change will be left behind. Therefore, as a company, we are constantly investing a significant part of our profits into new technologies,” said Periklis Theodoridis, Chief Commercial Officer at Cablenet.
He said the company is pursuing ways to keep up with changes as “Increasingly, fixed line networks are migrating constantly to allfiber designs”.
Cablenet’s existing Hybrid Fiber Coax (HFC) network contains a fiber feed to areas and then uses coaxial cable to transport signals through the neighbourhood to the homes.
Their current network can provide services of up to 1 Gbps, while a future upgrade will provide speeds of up to 10 Gbps.
Theodoridis said that Cablenet is considering utilizing fiber all the way to the home in new greenfield areas as equipment needed for upgrades on their current HFC system is expensive and fiber technology equipment has become cheaper.
He said that the company’s next move will heavily depend on several factors like whether customers will be willing to pay a premium for a Gbps service, competition pressure, and the budget available to invest in network upgrades.
The most likely scenario would be a mixed one with fiber in new neighbourhoods and some limited investment in intermediate technologies in the rest of the brownfield network.
Primetel also provides high-speed Internet to over 1000 businesses, a number which is expected to grow quickly as the network expands.
“The expansion of our new generation network will contribute decisively to the development of new technologies, which will improve the quality of life through new experiences, developments, and services,” said Primetel Marketing Manager Alexandros Zachos.
“As the only private operator with its own submarine cable landing station in Cyprus, Primetel can guarantee high-speed international connectivity through various submarine cables,” he added.
Home fiber is already available in selected locations in Limassol and Nicosia and soon will be expanded throughout Cyprus, said Primetel.
“No matter how many connected devices there are in each household, everybody will be able to enjoy super-fast speeds and great stability,” said Zachos.