Cyprus Electricity Authority Wants To Compete In Telecoms

by Lorys Charalambous, Tax-News.com, Nicosia

13 February 2002

Cyprus Electricity Authority (EAC) vice-president Andreas Louroudjiatis yesterday told a parliamentary committee that the EAC planned to enter the telecommunications sector once it is liberalised. Speaking before the House Finance Committee, which was discussing the annual budget for the EAC and the Telecommunications Authority (CyTA), EAC said his department would soon be in a position to offer a wide range of services, including telephone, data and cable television facilities, using optical fibres.

"We are looking for a strategic investor or a collaborator to assist us with the technical side. Five foreign companies have already expressed an interest to undertake the task," he added.

Communications Minister Averoff Neophytou said that public companies should not compete against each other, saying: "There cannot be real competition between two companies which have the same owner. We are only trying to ensure consumers' best interests." But he conceded that he could not stop the EAC from expanding into the area of telecommunications: "They are welcome to join the club if that's what they want," he said, stressing at the same time that, "private companies should also be encouraged to do so in order to increase competition in the field."

Telecommunications Commissioner Vassos Pyrgos, whose office is sponsored by the government and the European Union, last month said world leader Vodafone and Greek number one operator CosmOTE had expressed interest in seeking licences for the operation of telecommunications services. Pyrgos told the Cyprus Mail: "I cannot make any statements now because it is the minister's responsibility to handle the matter according to his political judgment. If and when the EAC applies for a licence to operate telecommunications services I will be able to give my opinion."

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