CyTA Faces Penalties After Failing To Raise Mobile Rates

by Lorys Charalambous, Tax-News.com, Cyprus

15 August 2005

The Cyprus Telecommunications Authority (CyTA) is facing the threat of penalties from the country's Competition Commission for failing to comply with a court order calling on the former state monopoly to increase its mobile phone tariffs.

As of Friday August 12, CyTA had yet to comply with a court order issued on Friday, August 5th by a Nicosia court ordering the firm to increase prices to pre-April levels. The court order affirmed a long-standing interim order issued by the Competition Commission, which came in response to a complaint by mobile phone operator Areeba that CyTa was abusing its dominant position in the local market by cuttings its prices to unrealistic levels.

CyTA is said to have a 90% share of the Cypriot mobile telecommunications market.

However, while CyTA has reportedly said that it will abide by the court order, the firm is also arguing that it is hamstrung by laws requiring it to give its customers one month's written warning of any changes in mobile phone tariffs. According to CyTA, this means that it will be unable to increase its prices until September 9 at the earliest.

Six on CyTA's nine board members were handed court summonses during an emergency board meeting last week. They are due to appear before court on Friday, August 18 to explain charges by Areeba that CyTA is continuing to flout the court order.

Recommended