Financial Mirror (Cyprus)

Cyprus households set for high-speed internet

Cyta launches multi-million fiber optic network project Lagging in e-government Cablenet and Primetel

- By Kyriacos Kiliaris

SEE PAGES 8 - 9

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.

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