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THE TECHNOLOGY, MEDIA AND
TELECOMMUNICATIONS REVIEW
Reproduced with permission from Law Business Research Ltd.
This article was frst published in The Technology, Media
and Telecommunications Review, 1st Edition
(published in October 2010 editor John P Janka).
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The Technology,
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R
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yOOn & yAnG llc
Editors Preface ............................................................................................................. vii
John P Janka
list of Abbreviations ............................................................................................................... ix
Chapter 1 ARGEnTinA .....................................................................................1
Francisco M Gutirrez and Hctor M Huici
Chapter 2 AuSTRAliA ..................................................................................... 14
Anthony Lloyd, Paul Kallenbach and Paul Schoff
Chapter 3 AuSTRiA .......................................................................................... 29
Christian Schmelz and Andreas Orator
Chapter 4 bulGARiA ...................................................................................... 37
Radoslav Chemshirov
Chapter 5 cyPRuS ............................................................................................ 48
Yiannos G Georgiades and Rebecca E Howarth Seaberg
Chapter 6 dEnMARk ...................................................................................... 64
Torben Waage, Louise Sofe Falch, Martin Dahl Pedersen
and Daniel Herman Rjtburg
Chapter 7 EuROPEAn uniOn .................................................................... 76
Maurits J F M Dolmans, Francesco Maria Salerno
and Malik Dhanani
Chapter 8 fRAncE ........................................................................................... 95
Christophe Clarenc
Chapter 9 GERMAny .................................................................................... 109
Zahra Rahvar
Chapter 10 hOnG kOnG .............................................................................. 122
Simon Berry and Vi Vi Chow
cOnTEnTS
Contents
Chapter 11 indiA .............................................................................................. 136
Atul Dua, Rahul Goel and Anu Monga
Chapter 12 indOnESiA ................................................................................. 148
Dewie Pelitawati, Melanie Hadeli and Prihandana Suko P
Chapter 13 iTAly .............................................................................................. 160
Stefano Macchi di Cellere and Giuseppe Mezzapesa
Chapter 14 JAPAn .............................................................................................. 172
Hiroki Kobayashi, Tim Johnson and Tomohiko Kamimura
Chapter 15 kOREA ........................................................................................... 186
Wonil Kim and Kwang-Wook Lee
Chapter 16 luxEMbOuRG ........................................................................... 199
Franz Fayot and Linda Funck
Chapter 17 PORTuGAl ................................................................................... 214
Jacinto Moniz de Bettencourt and Joo de Sousa Assis
Chapter 18 ROMAniA ...................................................................................... 225
Adriana Nastase and Ionut-Alin Sava
Chapter 19 SinGAPORE ................................................................................. 236
Ken Chia
Chapter 20 SOuTh AfRicA .......................................................................... 259
Safyya Patel

Chapter 21 SPAin .............................................................................................. 271
Jos Ramn de Hoces
Chapter 22 SWEdEn ........................................................................................ 281
Elisabet Lundgren and Emma Linnr
Chapter 23 uniTEd kinGdOM ................................................................. 290
Omar Shah and Gail Crawford
Chapter 24 uniTEd STATES ........................................................................ 303
Karen Brinkmann and Jarrett S Taubman
Appendix 1 AbOuT ThE AuThORS ........................................................... 316
Appendix 2 cOnTRibuTinG lAW fiRMS cOnTAcT dETAilS .... 333
vii
EDITORS PREFACE
The development of industry always outpaces the development of the law.
Nowhere is that more true than in the TMT sector, where the digital revolution
has spawned new technologies and new services that no lawmaker could have envisioned
as little as a decade ago. The Internet has, among other things, opened up new markets,
broken down borders, created new educational opportunities, improved the provision
of health care and reduced the barriers to entry for new service and content providers.
Along the way, the legal constructs once put in place to govern traditional, wireline
telecommunications have become outmoded.
Commonplace technologies on which we have long relied may no longer
predominate in the next decade. Twisted pair (copper) is being bypassed in favour of
fbre and wireless. Broadcast radio and television is becoming less relevant as consumers
rely more and more on the Internet for the delivery of their entertainment, and demand
that access wherever they are at home or on the move. As a result, government policy
is evolving to support the deployment of broadband infrastructure, and to facilitate
mobile services. Many countries are also making signifcant investments to get high-
speed broadband service deployed to all of their citizens.
The booming demand for broadband services is straining the limited spectrum
resources that are needed to enable wireless-based broadband services (both terrestrial
and satellite). No incumbent user of spectrum is safe as existing spectrum bands are being
refarmed; moreover, the digitisation of all forms of communication signals is leading
to more effcient use of the spectrum, and facilitating new and creative approaches to
sharing radio spectrum. But there is no free lunch, and national regulators are coming
under increasing pressure to capture some of the value associated with the spectrum
bands that they are opening for these new purposes.
The broadband revolution frees consumers from their former reliance on a
few newspapers, TV stations and radio stations for their news and information. But
these gatekeepers have not entirely been eliminated they have moved further up the
distribution chain as national governments and application service providers seek to
constrain access to certain content, whether by blocking it entirely, or by prioritising one
source over another.
Editors Preface
viii
Personal information is being collected, stored and mined in a manner that
our forefathers never could have envisaged. Even when we do not volunteer that
information through a social networking site, virtually every Internet access and
wireless device we use knows where we are, and tracks what we do. Such personal
information is being used to target products and services to us (which may or may
not be a good thing), but also can be used in a manner that virtually eliminates any
expectation of privacy. While the marketing opportunities and social benefts can be
terrifc, the chances for abuse (particularly in the case of children) and the risk of
security breaches are greater than ever.
The goal of the frst edition of The Technology, Media and Telecommunications Review
is to provide an overview of the legal constructs that govern these types of issues in 24
jurisdictions. The authors cannot exhaustively discuss every one of these topics in the
following articles, but we do hope this book serves as a valuable starting point as you
explore these issues. We welcome your suggestions for future editions.
John P Janka
Latham & Watkins LLP
Washington, DC
October 2010
ix
LIST OF ABBREVIATIONS
3G Third-generation (technology)
4G Fourth-generation (technology)
ADSL Asymmetric digital subscriber line
BWA Broadband wireless access
CATV Cable TV
CDMA Code division multiple access
DAB Digital audio broadcasting
DDoS Distributed denial-of-service
DoS Denial-of-service
DSL Digital subscriber line
DTH Direct-to-home
DTTV Digital terrestrial TV
DVB Digital video broadcast
DVB-H Digital video broadcast handheld
DVB-T Digital video broadcast terrestrial
ECN Electronic communications network
ECS Electronic communications service
EDGE Enhanced data rates for GSM evolution
FTNS Fixed telecommunications network services
FTTC Fibre to the curb
FTTH Fibre to the home
FTTN Fibre to the node
FTTx Fibre to the x
FWA Fixed wireless access
GSM Global system for mobile communications
HDTV High-defnition television
HITS Headend in the sky
HSPA High-speed packet access
ICT Information and communications technology
IPTV Internet protocol television
ICP Internet content provider
x
ISP Internet service provider
LAN Local area network
LTE Long Term Evolution (a next-generation 3G and 4G
technology for both GSM and CDMA cellular carriers)
MMS Multimedia messaging service
MMDS Multichannel multipoint distribution service
MSO Multi-system operators
MVNO Mobile virtual network operator
MWA Mobile wireless access
NGA Next-generation access
NIC Network information centre
NRA National regulatory authority
PNETS Public non-exclusive telecommunications service
PSTN Public switched telephone network
RF Radio frequency
SMS Short message service
STDPCOs Subscriber trunk diallingpublic call offces
UASL Unifed access services licence
UHF Ultra-high frequency
UWB Ultra-wideband
UMTS Universal mobile telecommunications service
USO Universal service obligation
VDSL Very high speed digital subscriber line
VHF Very high frequency
VOD Video on demand
VoB Voice over broadband
VoIP Voice over Internet protocol
WiMAX Worldwide interoperability for microwave access
List of Abbreviations
48
Chapter 5
CYPRUS
Yiannos G Georgiades and Rebecca E Howarth Seaberg
*
* Yiannos G Georgiades is a senior partner and Rebecca E Howarth Seaberg is a legal consultant
and adviser at Georgiades & Mylonas, Advocates & Legal Consultants.
I 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 Offce
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 regulations that were enacted in 2003 were largely based on the European
legislative framework in the telecommunications sector that was in force during that
Cyprus
49
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 Offce 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 refect 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 diffculty 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.
II 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 offce
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 felds 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:
a 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;
b to ensure that terminal equipment fulfls the national and international standards
and supervise the use and running of such equipment;
Cyprus
50
c 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;
d the granting of authorisation for the creation, establishment or provision of
electronic communications and the taking of any action necessary to ensure the
effcient administration of such;
e 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;
f to regulate by order or decision issues relating to Internet domain names ending
in .cy;
g to designate undertakings with signifcant market power in an electronic
communications market and to impose remedies for the enhancement of
competition;
h to regulate by order or decision access and interconnection, consistent with the
principle of proportionality;
i to regulate by order or decision all consumer protection issues that refer to the
electronic communications sector;
j to provide services for the resolution of any disputes that may arise;
k to require technical, fnancial and legal information to be provided if and when
necessary; and
l to impose administrative fnes 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 fnes 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 notifcation 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 fulflled 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.
Cyprus
51
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 recognised by the Cypriot government and the CRTA, which are
now in the process of preparing a bill that will fll the existing legal gap and will reform
the Cypriot Media Law according to the developments of technology and EU law and,
more specifcally, the Audio-visual and Media Services Directive 2007/65/EC. A bill is
being prepared for public consultation and to be put into legislation. This bill was due in
February 2010 and the changes should therefore be expected imminently.
The major provider and telecoms operator in Cyprus is CYTA, which is a semi-
governmental organisation and is considered by many to be the leading provider of
integrated telecommunications services in Cyprus.
In relation to mergers, acquisitions and joint ventures in the telecoms and
broadcasting sectors, the Commission for the Protection of Competition (the CPC)
is the administrative body that is responsible for the regulation of such activities and
for ensuring that the relevant rules and regulations are complied with. The CPC was
established in 1990 and its main responsibility is the restoration, conservation and
strengthening of competition within the Republic of Cyprus. This covers the control of
mergers and acquisitions between different enterprises and follows the European laws
and regulations on matters of competition and transparency.
The relevant law on the Control of Concentrations between Enterprises, Law
22(I)/1999, as amended in Law 22(I)/1999, aims to control any important restructurings
of enterprises in the form of concentrations in relation to their effect upon the structure
of the competitive market. Concentrations are considered to be of major importance
and therefore require notifcation if the following test is satisfed:
a the annual worldwide turnover realised by each of at least two participating
enterprises exceeds 3,417,202.88; and
b at least one of the participating enterprises is concerned with commercial activities
within Cyprus; and
c at least 3,417,202.88 of the joint aggregate annual turnover of the participating
enterprises concerns the sale of goods or the supplying of services within
Cyprus.
Cyprus
52
The notifcation must be fled within the time limits set out in Law 22(I)/1999 and
the enterprises must secure the relevant approval of the Commission for the notifed
concentration prior to effecting any such concentration.
Furthermore, it is important to recognise that Cyprus has made a commitment
to the World Trade Organization Basic Telecommunications Agreement following its
accession to the European Union.
Media enterprises in Cyprus are regulated in principle by two separate legislative
instruments. The Media Law of 1989 applies to press media whereas the Radio and
Television Stations Law of 1998 applies to radio and television broadcasters. The
establishment, installation and operation of a broadcasting station is regulated by a
licensing regime that aims to facilitate public interest considerations. A licence is only
provided to a company or partnership or public body established under the laws of
Cyprus or any other EU Member State. A natural person can only apply for a licence
provided that this does not involve television broadcasting and only contemplates the
operation of a local station with limited coverage. The ownership of a broadcasting
entity is also subject to considerable restrictions. Basically, a natural person may not
control, either alone or through members of his or her immediate family, more than 25
per cent of the share capital of the broadcasting company. In addition, non-EU natural
persons may not exceed 25 per cent. Additional impediments are provided for persons
with criminal convictions. Concessions are provided for with regard to the operation of
local radio stations with limited coverage.
A further matter worthy of note is the NRA, which regulates the prices of
operators that have signifcant market power. The price controls usually take place at a
wholesale level but, sometimes, they can also be found at a retail level, which is designed
to ensure effective competition. There are several services that are price regulated,
including, inter alia, broadband and interconnection.
Any decisions made by the regulatory bodies in Cyprus can be appealed before
the Supreme Court.
III INTERNET AND IP-BASED SERVICES
i Internet and Internet protocol regulation
With regard to services regarding the Internet, these are regulated in a similar way
to other electronic communication services. The relevant authority for such Internet
services and regulation is the OCECPR. However, it is important to understand that
other authorities are also involved in the process of regulation and compliance to ensure
that the processes are correctly followed and the regulations complied with.
A useful website for reference purposes is the OCECPR website.
1
Here, in the
licensing section, there are guidelines as to the types of networks and services requiring
registration as well as different laws and regulations, for example, the Regulation of
Electronic Communications and Postal Services Law of 2004 as well as the different
tariffs and statistical data on electronic communications.
1 www.ocecpr.org.cy.
Cyprus
53
As previously discussed, Cyprus national law has been amended in order to refect
the provisions of the EU directives and regulations. However, although compliant with
some provisions of the law, they may in the future be amended and extended to cover
further aspects of the Internet and IP-based services as demand for different services
grows within the country. One example of such growing demand is services that provide
voice, data and video and the regulation of VoIP, which are currently unregulated.
ii Universal broadband service
The Cypriot government and other regulatory bodies in Cyprus are working towards
ensuring that the provision, accessibility and promotion of broadband is strengthened
and broadened.
The infrastructure for the provision of broadband is currently developing and,
recently, broadband connection has been made possible in a large number of non-rural
areas across the island.
In November 2002, CYTA chose a company called Thirdspace to supply and
deploy an advanced interactive broadband services platform in Cyprus. This cooperation
has allowed the use of the platform to expand its services to include the provision of
television channels, video on demand and web access via the television.
Furthermore, the Cypriot government is also devoting time and effort to creating
fnancial schemes that are designed to ensure the good accessibility and promotion of
broadband and the broadening of its use throughout Cyprus. Therefore, the Cypriot
government and the relevant authorities are assisting in the construction and deployment
of the infrastructure for broadband in an attempt to make it more readily available
across the island.
iii Content regulation and protection
According to the Act on the Regulation of the Electronic Communications and Postal
Services, Act 112(I)/2004, Service Communications and Postal Services Act 112(I)/2004,
service providers are not liable for personal harm or damage to property as a result of
the suspension of any service of electronic communications that may be related to an
unavoidable accident, natural disaster or the reasonable needs of the system or defective
installations that were not installed by the provider. Apart from this immunity, the law
does not recognise any other immunity for the beneft of service providers.
Cyprus national law and the European regulations cover matters such as the
privacy of electronic communications and other privacy related offences, for example,
the illegal collection, storage, modifcation, disclosure or dissemination of personal
data.
An area of particular interest in relation to the Internet and intellectual property
matters is that of domain names. In Cyprus, domain names can be applied for by
individuals or by businesses or companies. The application can be made directly to the
relevant body or via an ISP.
In relation to companies, any company can make an application for a domain
name for the whole of its name, as it is registered with the Registrar of Companies and
the Offcial Receiver, or using a combination of letters, provided that the line of chosen
letters remains the same as it appears in the name of the registered company or trading
Cyprus
54
name. Furthermore, there are a number of other requirements and restrictions that need
careful consideration in order for the application to be successful, for instance, the name
must not have a generic meaning and cannot violate any regulations or match any other
registered company or company trading name. A foreign company may obtain a licence
to use it only if they also have a registered trademark.
In relation to natural persons, anyone can apply for the registration of a trading
name, provided that they are 18 years of age and can provide the correct means of
identifcation. The applicant does not need to be able to show that they are resident or
domiciled in Cyprus. However, the contact person shown on the application form must
prove that they are a Cypriot national or a permanent resident of Cyprus.
Domain names raise particularly interesting issues in relation to intellectual
property rights. Trademarks, company and business names and unfair competition claims,
including passing off, can be used to attack a domain name licensee. It is important
to understand that the registration of a domain name does not automatically imply
the reservation of a name or trademark or, in fact, ownership of the domain name. It
merely gives them a licence to use the domain name for the period of the licence. For
this reason, it is important to protect any intellectual property rights that you may have
through alternative means. Furthermore, it is the applicants responsibility to ensure
that the name applied for does not confict with third parties trade names, copyright
or any other intellectual property rights. If a situation arises whereby a domain name
ends up being the subject of a legal action, it will be subject to the jurisdiction of the
Cypriot courts since the applicant for the licence of the domain name must have an
administrative contact who is a permanent resident of Cyprus.
iv National security
The national laws and European regulations by which and under which the regulatory
bodies of Cyprus operate are discussed throughout this chapter under separate headings.
The regulatory bodies and security services, service providers and emergency services
are obliged to operate under these laws.
In relation to freedom of information legislation, even though there is no
one specifc legislation regulating freedom of information, Section 19 of the Cypriot
Constitution protects, at the highest level, the right to freedom of speech and expression.
More specifcally, Paragraph 2 of Section 19 explicitly provides that this right includes
the freedom to hold opinions and receive and impart information.
IV SPECTRUM POLICY
i Development
The main concerns of the regulatory bodies when considering changes and
developments within Cyprus remain the harmonisation of laws and regulations with
the EU regulations and directives and also the further development of a balanced, yet
competitive environment and market that does not distort the services provided to and
the protection of Cypriot and foreign consumers as well as ensuring a good standard of
service that is provided to the end-user. Furthermore, all radio spectrum harmonisation
Cyprus
55
decisions have been transposed into national law, including Decision 2007/344/EC on
the harmonised availability of information regarding spectrum use.
The Department of Electronic Communications of the Ministry of
Communications and Works, formerly the Directorate of Telecommunications,
established in 2003, is the spectrum management authority in the Republic of Cyprus.
The department works towards promoting the best use of the radio frequency spectrum
and offering the best and widest service to the consumers.
The relevant legislation under which the Department of Electronic
Communications operates is the Radio Communications Laws of 2002 of 2004 up to
No. 2, including regulations and orders issued by virtue of these said laws.
The Departments main activities cover the enforcement of the radio
communications laws and the accompanying regulations as well as the planning and
management of the national frequency plan and the setting of the provisions of the rights
of use of spectrum. The Department also evaluates and introduces new technologies
in Cyprus and monitors the use of radio spectrum by the authorised users and seeks to
detect any illegal transmissions. Furthermore, the Department also conducts surveillance
regarding radio equipment and the exposure of the public to electromagnetic felds. Apart
from these duties, the Department also represents the government in international and
regional telecommunications organisations in the feld of electronic communications, for
example, the ITU (International Telecommunications Union) and the Radio Spectrum
Policy Group and the Radio Spectrum Committee.
ii Flexible spectrum use
The matter of developments and changes to enable more fexibility for both spectrum
use and spectrum policy in general, as stated previously in relation to other areas
covered by this chapter, is frstly dependent upon the national laws and regulations being
harmonised with the European regulations and secondly, to ensure that the availability
of services for the consumers is as wide and competitive as possible.
The demand for certain types of services, for instance, mobile Internet and
broadcasting, is accelerating at a rapid pace. Therefore innovation and the development
of the available services require access to a wide spectrum to help fulfl the needs of
consumers. As a result of development within the services available, greater effciency in
the use of spectrum for wireless electronic communications services is required and as
a result, the relevant authorities are working towards providing a greater abundance of
spectrum for services to end-users and opportunities for innovation.
iii Broadband and next-generation mobile spectrum use
In relation to next-generation networks, there is currently no regulation of such
networks.
Cyprus is connected to the rest of the world via a submarine fbre-optic cable
network. This network connects Cyprus directly with Greece, Italy, Israel, Syria,
Lebanon and Egypt and, thereafter, with the rest of the world. The Cypriot part of
the fbre-optic network is owned by CYTA Global, which is a division of the Cyprus
Telecommunications Authority.
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CYTA provides DSL services across Cyprus. In addition, since 2001, consumers
in Cyprus have had access in most urban and suburban areas as well as in a growing
number of rural areas to high-speed ADSL Internet services. ADSL enables faster data
transmission over copper telephone lines than a conventional modem can provide,
providing speeds ranging from 256kb/s to 8Mb/s. The two major telecoms carriers,
CYTA and Primetel, offer ADSL platforms through a number of ISPs that provide
broadband Internet connectivity to home and business users.
Recently, OTEnet-Telecom began creating its own broadband network offering
ADSL services that do not use any of the above platforms. OTEnet Telecom was formed
in Cyprus in 2003 as the local branch of OTE, the telecoms colossus of Greece. OTEnet
provides telephony and Internet connectivity services for homes and corporations.
In Cyprus, the cost of ADSL broadband is still signifcantly higher than in many
other European countries. The consumer must pay for the rental of the telephone line,
a connection fee to the platform and the fee to the ISP.
iv Spectrum auctions and fees
Spectrum auctions are already used in Cyprus, in particular in relation to the use of
radio frequencies that are subject to the granting of an individual right of use or general
authorisation.
The calculation of the fees relating to such authorisation and other related issues
are governed by detailed provisions, which are covered by the Regulations on Radio
Communications (Fees) of 2004.
V MEDIA
i Digital switchover
Cyprus has a good choice of television and radio stations, which are available 24 hours
a day. All television and radio stations are regulated under the Cyprus Radio-Television
Authority.
The amount of television station transmissions that are available are currently
dependent upon where the viewer is located in Cyprus. Some stations are broadcast
nationally throughout Cyprus. However, there are some that are maintained locally in
certain areas. Many television stations are also live-streamed on the Internet.
However, change is now in progress as Cyprus is set to follow many other
European countries and on 1 July 2011, the analogue terrestrial television broadcasting
will stop and the offcial switchover to digital television will take place. The move is part
of a pan-European campaign to digitise television by 2012, which aims to bring extra
services to consumers such as HDTV, personal video recorders and full-service VOD,
as well as a broader range of channels of a higher and more interactive quality. The
switchover is taking place throughout the various districts of Cyprus in three phases.
Currently, as previously mentioned, some digital channels are already available to some
viewers and are running in parallel with analogue. The second phase will extend the
coverage to all urban areas while the third phase will cover all of the countryside before
the analogue signal is switched off.
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In order to receive digital transmissions after 1 July 2011, all analogue television
owners will need to purchase an MPEG4 set top box as this is the technical standard that
will be required for transmission. If viewers have an old analogue television, they will
no longer, after the switchover, be able to view any channels. However, most modern
televisions already have a built-in digital tuner as well as analogue and they will therefore
simply need retuning. Customers will not need to buy a new antenna and if their existing
set contains an MPEG4 compression box, it is ready for digital viewing. If customers
have an MPEG2 box, they will need to buy a new MPEG4 decoder, or a set-top box, the
average cost being 50 to 70 for a standard box, ranging up to approximately 120 for
a standard box with additional features. Set-top boxes do not enable analogue viewers to
display high-defnition programmes.
As of 2 March 2010, the Cyprus Broadcasting Corporation (CyBC) launched
its digital platform alongside the present analogue system and began broadcasting
channels such as ERT World, Euronews and CyBC1/CyBC2 on the frequency UHF33.
Viewers who have a digital television or a digital television set-top box will already be
able to receive these channels. The benefts of this for the consumer include allowing all
viewers with the required television set up to watch clearer digital pictures, have access
to interactive services and view extra channels. Furthermore, it is also possible to opt for
digital television packages that come as part of an Internet package using an ADSL line,
which does not require any satellite dish and also offers a variety of television channels
in a variety of languages.
In May 2010, the OCECPR launched a public and stakeholder awareness campaign
to bring the change to digital television to the publics attention and to provide them
with information about the switch-off.
It is believed that digital broadcasting uses fewer radio frequencies and so the
remaining frequencies can then be used for other purposes such as radio stations,
communication channels for emergency services or wireless broadband, thereby further
broadening the services ultimately available to the consumer. Further digital broadcasting
requires fewer radio masts and a reduced number of transmitters and substations and
therefore requires less maintenance.
In July 2008, the Council of Ministers decided to proceed with the licensing of two
platforms for digital television. One licence was given to CyBC, PIK, for public service
broadcasting and the second licence was to be sold by auction to a private operator.
On 4 December 2009, the Ministry of Works and Communications and the
competent electronic telecommunications authority published an invitation to tender for
the auction for the licence for the establishment of a DTTV platform in Cyprus. This
was done in an effort to comply with the EU policy relating to the digital switchover and
the switching off of analogue signals. The applicants had to submit their applications
by 22 February 2010. The auction was to be conducted by the Regulator. Initially, the
auction was to begin on 30 April 2010 but it was postponed until 28 June 2010.
Three applicant companies were approved to participate in the auction, one of
which, LRG Enterprises Ltd, was a company that formed a group for the purpose of
the tender including three enterprises from other European countries (two from Greece
and one from the UK). The second participant was CYTA, which also has one IPTV
platform. The third was a company named Velister Ltd, which is a consortium of Cypriot
television broadcasters, consisting of the channels Antenna, Logos, Sigma TV, Plus TV,
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LTV and Alpha and the Internet providers Primetel and Cablenet. Velister Ltd was the
successful bidder in the auction for a price of 10 million and was awarded the licence
for the second digital platform on the condition that it paid 20 per cent of the auction
price by 24 September 2010 and provides a guarantee for the payment of the remaining
amount of the tender price.
The tender has been the subject of much media coverage and debate. Further,
LRG has fled a complaint with both the Information Society and Media Directorate
General of the European Commission and the Competition Directorate in relation to
matters of competition law and the basic principles of public procurement concerning
fairness and transparency during an auction procedure based on the European Directives
2002/21/EC, 2002/20/EC, 2002/19/EC and 2007/77/EC.
ii Internet-delivered video content
Over the past few years, there has been a rapid expansion of the services available to
consumers. It is now possible for viewers to have access to live streaming, which gives
viewers the ability to have real-time access to live broadcasts over the Internet and also
the ability to watch replays of flms or football matches in their own time. Furthermore,
viewers in Cyprus can now use services such as VOD, which allows them, for example,
to choose and rent movies and to watch them directly from their personal televisions.
Such services are available from the major providers and telecoms operators in Cyprus
at a relatively low cost.
Furthermore, it is worth noting that there are several ways for consumers to access
the Internet. This can be done via a DSL connection, ADSL or a dial-up subscription, so
as a result of the wide availability of the Internet, it is conceivable that the majority of
consumers are benefting from the services available.
iii Globalisation and foreign investment
As previously discussed, there are no restrictions upon foreign investment in the area of
electronic communications within Cyprus. However, companies that are authorised by
the OCECPR have to be registered with the Department of the Registrar of Companies
and the Offcial Receiver.
With regard to globalisation, this is a phenomenon that is generated simultaneously
by the application of new technologies and the principles of free trade. The actual idea
of globalisation does not mean a blending of technologies that may threaten cultural
diversity both within Cyprus and internationally. It is, however, possible that globalisation
could have a negative effect on the media industry by promoting the concentration of
companies as a means of reaching the necessary competitiveness on the international
market and the broadening of content to satisfy general interest to the detriment of
niche interests, therefore putting commercial success before the overall quality of a
product. However, there are several European regulations and, in fact, national laws that
assist in the prevention, for example, of concentrations of companies that could lead
to unfair competition. There are also relevant authorities within Cyprus, for example,
the Department of Electronic Communications, which consistently monitor the
introduction of new technologies and ensure that the authorised users conform to the
laws and regulations.
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iv Mobile services
Due to the growing demand for mobile media services, it is also possible to use a 3G
mobile phone, a 3G modem or a specialised 3G data card within Cyprus. Such services
mean that it is possible to access the Internet with broadband speeds of up to 384kb/s
or up to 1.8Mb/s in the case of 3.5G (HSDPA) via a mobile phone.
The coverage for 3G is still limited, mainly to urban and suburban areas, and is
currently offered by Cytamobile-Vodafone and MTN. The whole of the network of
Cytamobile-Vodafone and MTN has been fully upgraded to support 3.5G.
Furthermore, it is interesting to note that CYTA has taken action to ensure
compliance with the European Framework for safer mobile use by young people. The
Cypriot mobile telecoms operators have adopted a code of conduct that provides for
ensuring minimum protective measures for safer use of content provided on mobile
phones. The main provisions relate to persons under 18 years of age to protect them
from illegal or adult content that can be accessible via a mobile device. The code complies
with the applicable European and national legislation.
VI SECURITY
i Privacy and consumer protection
The Commissioner has an obligation to ensure transparent processes that regulate the
ability of telecommunications operations and service providers to negate the possibility
of undisclosed numbers, for example, upon a request being made by a subscriber that
involves the tracing of malicious calls. Such information that discloses the callers identity
is stored and available to such persons as are nominated by the Commissioner. The same
applies for calls relating to emergency services.
The Director of the Department of Electronic Communications at the Ministry
of Communications and Works may authorise any person to monitor, use or disclose
records only for a limited purpose to verify any contravention of the relevant radio
communications laws or in order to ensure security and integrity in communications
and communications systems. In respect of the content of such communication, the
matter is regulated by a separate legislative framework, comprising of the Act on the
Protection of Privilege of Private Communications (Act 92(I)/1996) and the recent
Act on the Preservation of Telecommunications Data for the Purpose of Investigating
Serious Criminal Offences (Act 183(I)/2007).
The use of automated calling systems without human intervention, electronic
mail or SMS messages for the purpose of direct marketing may only be allowed in respect
of subscribers who have given their prior consent. As a result, companies conducting
marketing campaigns may not send any form of marketing information in electronic
(or non-automated) form such as e-mail, SMS or MMS, if the person receiving the
communication has not given their express consent.
With regard to unsolicited commercial communications, otherwise known as
spam, under Section 15 of the Data Protection Law, personal data cannot be processed
by anyone for the purposes of direct marketing or for provision of services from a
distance unless the data subject notifes his or her written consent to the person
responsible for processing (the data controller). If a controller wishes to carry out
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the processing of personal data for such purposes, he or she may, for the purpose of
obtaining the data subjects consent, use his or her name and address, provided that the
data has been obtained from sources accessible to the public.
The Commissioner may, after consulting the Personal Data Protection
Commissioner, issue an order that will safeguard the legitimate interests of persons with
regard to unsolicited communications so that they are adequately protected.
In a situation whereby a natural or a legal person obtains contact details of e-
mail addresses, within the context of a sale of a product or service, the same natural
or legal person may use these electronic details for the direct marketing of its own
similar products or services, provided that customers are clearly and distinctly given
the opportunity to object, free of charge and in an easy manner, to such use of their
electronic contact details when they are collected and on the occasion of each message,
in case the customer has not initially refused such use.
Issues concerning Internet safety and protection of personal data are addressed in
Part 14 of Law 112(I)/2004. Part 14 of this Law (Security, Secrecy and Data Protection) is
essentially the incorporation of Directive 2002/58/EC of the European Parliament and of
the Council of 12 July 2002 concerning the processing of personal data and the protection
of privacy in the electronic communications sector into the Republics municipal law.
The Processing of Personal Data (Protection of Individuals) Law (No.
138(I)/2001) entered into force in November 2001 and was amended by Law (No.
37(I)/2003). The national law is compliant with the acquis communautaire and especially
with European Directive 96/46/EC on Data Protection.
Furthermore, according to Articles 4 and 5 of the Decree on Data Retention,
all authorised providers of either mobile or fxed telephony are obliged to retain the
subscribers and the end-users billing data as described by Article 100(1)(a) of the Law.
112(I)2004 for six months only for the purposes of dispute resolution regarding billing.
ii Protection for children
Cyprus has signed, ratifed, acceded or succeeded and essentially incorporated into the
Republics municipal law all international treaties and conventions concerning child
protection and the effcient application of Human Rights and Fundamental Freedoms in
general. In particular, the Fighting of Marketing of Persons and Sexual Exploitation of
Minors Law 2000 2(I)/2000 and the Convention of the Rights of the Child (Ratifying)
Law 1990 (No. 243 199) (UN) Convention on the Rights of the Child Convention on
Cybercrime, Budapest 23 November 2001 are laws aimed at the protection of children,
particularly online.
Furthermore, the European regulations, coupled with national legislation, provide
protection from content-related offences, such as the dissemination of pornography, in
particular child pornography and information indicating violence.
Particularly, in relation to radio and television, the national Radio and Televisions
Law 1998 adopts the wording of Articles 22 and 22a of the Television without Frontiers
Directive 89/552/EC as amended in relation to the protection of minors. Moreover,
according to the Radio and Television Stations Regulations 2000, programmes that are
unsuitable for minors under the ages of 15 and 18 years respectively can only be broadcast
outside the family zone. According to the Regulations, family zone means the period
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during which programmes in unencoded form, suitable for persons under 15 years are
broadcast. The zone starts at 5.30 p.m. and ends at 9 p.m. for nights followed by working
days and at 10 p.m. for nights followed by the non-working days of Saturday, Sunday, bank
holidays and school holidays as well as those defned by the Public School Regulations.
Furthermore, broadcasting of programmes with intense erotic content by stations that
broadcast in unencoded form is prohibited. However, stations that broadcast in encoded
form may broadcast such programmes after midnight until 5.30 a.m. In line with the
Audio-visual and Media Services Directive 2007/65/EC Article 12, children are to be
protected from adult content.
iii Cybersecurity
The incorporation of the Convention on Cybercrime of Budapest into the Republics
municipal law is stated in Law 22(III)/2004. The law deals with, inter alia, illegal
access,
2
illegal interception,
3
data interference,
4
system interference,
5
the misuse of
devices,
6
computer-related forgery,
7
computer-related fraud,
8
offences related to child
pornography,
9
offences related to infringement of copyright and related rights
10
and
sanctions and measures.
11
Law 112(I) 2004 on the Regulation of Electronic Communications and Postal
Services Law, 2004, provides protection against matters such as messages being sent by
means of a public communications network that are grossly offensive, of an indecent,
obscene or menacing character or a message for the purpose of causing annoyance,
inconvenience or needless anxiety to another that is known to be false.
Furthermore, Law 138(I) 2001, the Processing of Personal Data (Protection of
Individuals) 2001, protects against spam, unauthorised interference with a record of
personal data, receiving knowledge of data, extracting, altering, harming, destroying,
processing, transmitting, notifying, making data accessible to unauthorised persons or
allowing such persons to receive knowledge of the data or exploiting the data in any way.
The Cyprus Law for the Protection of Confdentiality of Private Communications
(Interception of Communications) of 1996 prohibits the unauthorised interception of
any private communication, subject to certain exceptions.
Further, there are current discussions about the necessity of amending the Penal
Code in both legal and political forums within Cyprus so as to adopt national legislation
to comply with the provisions of the Council of Europe Convention on Cybercrime.
2 Article 2.
3 Article 4.
4 Article 6.
5 Article 7.
6 Article 8.
7 Article 9.
8 Article 10.
9 Article 11.
10 Article 12.
11 Article 14.
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iv Emergency response networks
The Commissioner has the power to disclose certain types of information, for example,
undisclosed telephone numbers. The information on the callers identity is stored and is
available to such persons who are nominated by the Commissioner, and this applies to
calls related to emergency services, such as the police, fre fghters and frst aid services.
Furthermore, in relation to VoIP, which is authorised by the OCECPR according
to the provisions of the decision of the terms and conditions of general authorisations
PA436/2005 and the Order of the Cyprus Numbering Plan PA850/2004 and has the
same regulatory rules that apply to the PSTN services, there are special provisions that
apply to the access of VoIP calls to emergency services.
VII YEAR IN REVIEW
The evolution of the Cyprus economy, its accession into the EU, combined with the effects
that the harmonisation process has had on national law and the strategic positioning of
the island have created an ideal hub within Cyprus for the telecommunications market.
The national strategy within the information technology market has been focusing
heavily on the creation and development of a modern infrastructure with a large range
of services and facilities being readily available to consumers and end-users.
The Cyprus government has commissioned the preparation of a study for a national
strategic plan, the objectives of the study being to formulate the legal framework and a
national policy for an e-commerce strategy that would place Cyprus in an advantageous
position with regard to the telecommunications and information technology market.
The result of the study was to create new legislation and to implement measures that
work towards creating fair and open competition and transparency.
We are of the opinion that the main areas of growth and development of 2010 and
into 2011 will be, in particular, the promotion of 3G network services and the forthcoming
switch from analogue terrestrial television broadcasting to digital transmission.
Furthermore, the OCECPR is a member of the Body of European Regulators for
Electronic Communications (BEREC). BEREC has replaced the European Regulators
Group (ERG), the group through which NRAs exchange expertise and give opinions in
relation to the functioning of the telecoms market in the European Union. Regulation
(EC) No. 1211/2009 of the European Parliament and the Council of 25 November
2009 established the BEREC.
The BEREC comprises a board of the heads of the 27 NRAs, including Cyprus,
and is assisted by an offce. The offce is an EU body managed by a management
committee in which all NRAs and the Commission are represented.
BEREC has a work programme for 2010, which is set out in three separate but
related strands:
a harmonisation;
b emerging challenges; and
c changes to the legal regulatory framework.
As the year progresses, we can expect changes to the existing regulatory framework as
a result of the work of the BEREC and the NRAs of the different EU Member States.
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The topics to be covered by the work programme range beyond the remit of this chapter
but details of these can be found on the offcial BEREC website.
VIII CONCLUSIONS AND OUTLOOK
During the initial years of its operation, the OCECPR set about following some main
objectives. These were mainly to open up the market to alternative providers, to secure
the swift and effcient operation of the market and the development of healthy and
effcient competition that would ultimately upgrade and expand the quality of the services
provided, to introduce new technology and generally promote consumer interests. The
OCECPR initially started by carrying out detailed research and market surveys and after
this, it began focusing on creating market conditions that would enable a competitive
market.
It would seem now that these objectives have to a great extent been achieved.
There are now over 50 organisations that are licensed to offer related services across
a broad range of electronic communication services. In turn, this has called for and
achieved the development of the technologies and systems available here in Cyprus
and the turnover of the relevant market has increased greatly. In addition, the relevant
market has resulted in the creation of a large number of new employment positions.
Although the laws and regulations in Cyprus are now harmonised, with regard
to telecommunications and media, with the EU directives and regulations, there are still
some aspects of the national laws that do not provide detailed guidance and formalities.
We are of the opinion that over the coming years, there will be a call for the development
of more legislation, in particular in relation to services that incorporate voice, data and
video services.
Furthermore, over the course of 2010, we are expecting the approval of the new
European Electronic Communications framework by the European Parliament.
YIANNOS G GEORGIADES
Georgiades & Mylonas, Advocates & Legal Consultants
Yiannos G Georgiades was educated at the Ealing College of Higher Education in the
United Kingdom (LLB Hons, 1989), the Inns of Court School of Law, Honourable
Society of Grays Inn, London (barrister-at-law, 1990). He gained hands-on experience
working at a City of London solicitors frm prior to moving to Cyprus. In 1995, he also
worked as visiting attorney at Corboy & Demetrio in Chicago and at Baker & Hostetler
in Washington, DC in the United States. He has had his own practice since 1992, and is
the managing partner of Georgiades & Mylonas, Advocates & Legal Consultants.
He is a member of the England and Wales Bar, the Cyprus Bar Association, the
International Bar Association, the American Bar Association, the Society for Computers
and Law and the International Technology Law Association. He is the president of the
Cyprus branch of the European Court of Arbitration and an executive member of the
court and an online mediator for commercial disputes for the Chamber of Commerce
of Milan.
He is the author of many publications, inter alia, Shipowners Liability and the
Arrest of Vessels, Cyprus Business Guide 1996; Cyprus chapter of International Charitable
Giving: Laws & Taxation, Kluwer Law International; Markets in Financial Instruments
Directive (MiFID), International Investment & Securities Review Euromoney 2008; the Cyprus
chapter of Getting The Deal Through Franchise 2010; the Cyprus chapter of the International
Comparative Legal Guide to Corporate Recovery and Insolvency 2009; and the Cyprus chapter in
the International Comparative Legal Guide to Litigation & Dispute Resolution 2009; as well as
various other articles published in newspapers and legal journals.
His main practice areas include corporate and commercial law, real estate,
international trade, private international law, international tax planning, EU law, medical
negligence, personal injury, intellectual property, maritime law and litigation.
REBECCA E HOWARTH SEABERG
Georgiades & Mylonas, Advocates & Legal Consultants
Rebecca Seaberg received her law degree from Keele University (LLB Hons) in 2006,
and BPP Professional Education Manchester (LPC, 2007). During her studies, she gained
experience by working at several local general practice frms in the United Kingdom.
After her graduation and practice course, she moved to Cyprus in 2007, where she began
working at Georgiades & Mylonas, Advocates & Legal Consultants, focusing mainly
on corporate and commercial law. She continues to develop her knowledge through
continued professional development courses and is currently undertaking her masters
through a UK university.
She has worked on several publications, inter alia, the Cyprus chapter in Getting
The Deal Through Franchise 2010; the Cyprus chapter of the International Comparative
Legal Guide to Corporate Recovery and Insolvency 2009; the Cyprus chapter in the International
Comparative Legal Guide to Litigation & Dispute Resolution 2009; Traditional Forms of ADR
in Cyprus Report, Business and Society Exploring Solutions 2009; as well as various other
articles published in newspapers and law journals.
She specialises in business law, corporate and commercial law, EU law, international
trade, intellectual property, property and real estate law.
About the Authors
GEORGIADES & MYLONAS, ADVOCATES & LEGAL CONSULTANTS
2 Ayios Pavlos & Kadmos Street
Wisdom Tower, 3rd foor
1105 Nicosia
Cyprus
Tel: +357 22 819292
Fax: +357 22 778444
enquiries@gmadvocates.com
yiannos.georgiades@gmadovcates.com
www.gmadvocates.com
About the Authors