Technology, Telecommunications & Media Law - Outlook & Perspectives 2011 - Update

INTRODUCTION

Cyprus became part of the European Union on 1 May 2004. Recently, the European Union has gradually legislated comprehensively to cover the area of electronic communications. The 'telecommunications package' that the European Union has implemented has been designed to facilitate fair competition in the electronic communications sector and consists of various legal instruments that have a direct effect in EU Member States.

The EU legal framework is not limited to telecommunications networks and services but also extends to cover electronic communications networks and services. However, it is worth noting that the European Union is currently considering reforms that will inevitably affect the electronic communications sector and Member States that implement such regulations and laws.

In 2002 and 2003, Cyprus carried out all of the necessary changes and followed the initiatives conceived during various public consultations and hearings that took place around this time in order to bring the national laws of the Republic of Cyprus and policies into line with the European laws, directives and regulations. Since its entry into the Eurozone in May 2004, governmental agencies and legislative bodies in Cyprus have been working towards harmonising the national laws with the European directives and regulations.

The procedures were primarily carried out through the establishment of the Office of the Commissioner of Telecommunications and Postal Regulation ('the OCTPR') in 2002 under Act 19(I)/2002. Following this, legislative rules and regulations were issued in order to have full compliance and harmonisation with the applicable EU regulations regarding telecommunications. The main priority of the legislative work was the carrying out of the obligations of Cyprus in connection with the accession into the European Union whilst at the same time creating conditions for the development and maintenance of healthy competition.

The regulations that were enacted in 2003 were largely based on the European legislative framework in the telecommunications sector that was in force during that period. The EU regulatory framework was fully implemented in Cyprus by the enactment of the Act on the Regulation of Electronic Communications and Postal Services Act 112(I)/2004, and after its enactment by Parliament on 30 April 2004, Act 19(I)/2002 was abolished and the OCTPR was abolished and was renamed the Office of the Commissioner of Electronic Communications and Postal Regulation ('the OCECPR').

It is useful to note that the regulation of telecommunications and information technology in Cyprus is kept relatively separate from media and broadcasting regulations. In relation to media and broadcasting, the relevant authority is the Cyprus Radio/Television Authority ('the CRTA'), which was established and operates as an independent regulatory body under the Radio and Television Advisory Committee – this is a consulting body, the aim of which is to reflect public opinion. The relevant national laws in relation to radio and television are the Radio and Television Stations Law 1998 and the Radio and Televisions Stations Regulations of 2000.

Further, it is also interesting to note that with the exception of the incumbent operator, the Cyprus Telecommunications Authority ('the CYTA'), which is state owned, all of the other available operators in Cyprus are privately owned.

The past decade or two has seen a revolution in television and radio broadcasting and the services that can now be provided to customers. In the relatively recent past, consumer choices were restricted to a small number of channels received on a dedicated box. However, viewers and listeners today are more likely to face difficulty in making a selection from the vast number of channels and options that are now available to them. The methods of delivery have multiplied greatly and the variety of technology that is now available is vast in comparison to what it used to be. In particular this is marked by the introduction in July 2011 with full digital viewing, the switch from analogue to digital television has had already a vast impact on the variation and selection of choice to viewers across the island.

REGULATION

The OCECPR is the NRA in Cyprus and is entrusted by the laws of the Republic to apply the provisions of the Act on the regulation of the Electronic Communications and Postal Services, Act 112(I)/2004.

The Commissioner is appointed by the Council of Ministers to head the office for no longer than six years. Furthermore, a Deputy Commissioner and an Advisory Committee are also appointed, whose duties include, inter alia, providing advice to and assisting the Commissioner in his daily duties.

The OCECPR is an independent body and the competent authority for market regulation in the fields of electronic communications including networks and services and postal services, whereas the Department of Electronic Communications at the Ministry of Communications and Works is the competent authority for spectrum management.

The principal aspects that fall under the supervision of the Commissioner are stipulated in Article 20 of the Act on Regulation of the Electronic Communications and Postal Services, Act 112(I)/2004 and include the following general competences:

1. the application of the general policy that is to be followed from time to time and that may be communicated to the Commissioner by the government in relation to electronic communications;

2. to ensure that terminal equipment fulfils the national and international standards and supervise the use and running of such equipment;

3. to prescribe and publish by order or decision quality standards for any public provider of electronic communications, postal services or electronic communication networks, as the case may be, and to ensure compliance with the prescribed standards and in the event that it becomes necessary, to order the taking of any corrective measures that may be required to ensure compliance;

4. the granting of authorisation for the creation, establishment or provision of electronic communications and the taking of any action necessary to ensure the efficient administration of such;

5. to establish the Cyprus Numbering Plan and to determine the procedure for the assignment and use of numbers according to the Cyprus Numbering Plan, on the basis of objective, transparent and non-discriminatory criteria, as well as any other issues concerning the assignment of numbers and the publicity of relevant procedures;

6. to regulate by order or decision issues relating to Internet domain names ending in '.cy';

7. to designate undertakings with significant market power in an electronic communications market and to impose remedies for the enhancement of competition;

8. to regulate by order or decision access and interconnection, consistent with the principle of proportionality;

9. to regulate by order or decision all consumer protection issues that refer to the electronic communications sector;

10. to provide services for the resolution of any disputes that may arise;

11. to require technical, financial and legal information to be provided if and when necessary; and

12. to impose administrative fines or other penalties in relation to non-compliance in relation to the provisions of the law, orders or decisions and to prescribe by order the level of such fines and penalties and the procedures by which they are determined.

    The Act on the Regulation of the Electronic Communications and Postal Services is the main instrument that regulates and governs the operation of electronic communications networks and the provision of electronic communication services. All of the national laws and provisions are now in line with the EU directives and regulations.

    Any person who intends to provide an electronic communications network or an electronic communications service is under an obligation to notify the commissioner of their intentions. This notification must be given in advance of them proceeding to provide such services. The provision of these services is not restricted to nationals of Cyprus and so does not exclude foreign ownership, as long as the provisions in the relevant laws are fulfilled and are adhered to in the provision of and maintenance of such services. As long as a general authorisation has been granted, any undertaking may provide electronic communications networks or services in Cyprus.

    The provision of electronic communication networks and services is not exclusively granted to any one operator. Exclusive rights are granted only for the use of radio spectrum and numbers, if necessary.

    It is important to note that the regulation of telecommunications and information technology under the laws of Cyprus is maintained quite separately from the media and broadcasting regulations. With regard to media and broadcasting regulation, the CRTA was established and operates as an independent regulatory body under the Radio and Television Stations Law. The CRTA is responsible for appointing the Radio/Television Authority Committee, which is a consulting body. The responsibilities of the CRTA include, inter alia, issuing and renewing broadcasting licences for radio and television, monitoring media ownership and media content, safeguarding editorial independence and ensuring the equal treatment of individuals. The authority is also responsible for the implementation of the European Convention on Transfrontier Television with regard to the content of the private broadcasters' programmes.

    The main pieces of legislation that govern the regulation of broadcasting in Cyprus are Law No. 7 (I)/1998 and the Radio and Television Stations Regulations 2000. Moreover, the CRTA, as mentioned above, is the regulator for the application of these laws. However, the aforementioned legislation does not apply to IPTV and cable TV and, therefore, the CRTA has no power over broadcasters who use these technologies. This legal gap has been...