Cyta plays a vital role in the nation’s digital transformation
Cyprus is currently working to modernize and strengthen its economy. One entity set to play a pivotal role in making these plans a reality is Cyta, the nation’s largest telecommunications provider, which has been active on the island since 1961. Today, CEO Andreas Neocleous says, “Cyta is instrumental in implementing the technological ambitions of Cyprus across the region. We have always been the market leader in telecommunications and digital services. Following more than 20 years of intense competition, Cyta remains the number one company in the local market, with a market share above 50 percent for almost all of the services we offer, which is not something you see in many countries. Furthermore, our mobile network was recently named ‘Europe’s Fastest Mobile Network’ by Ookla®, while our 5G network offers 100% population coverage, making Cyprus the first EU member-state to achieve this.”
At the moment, Cyta is accelerating the upgrade of broadband network, fused with fiber, interconnecting submarine state-of-the-art cables that span the island it calls home and beyond. These cables support the transmission of information within national borders, but this is far from their only function. They also serve as the bedrock for ultra-fast interconnectivity between Cyprus and neighboring countries such as Egypt, Greece, Italy, Israel, Lebanon, and Syria. As such, the network of Cyta provides the backbone for online communication between Europe and the Middle East, while playing a vital role in the flow of digital information worldwide. Therefore, the extensive on-land fiber network meets the high bandwidth utilization needs, making it easy for high-tech companies to establish operations in the country.
Andreas Neocleous
CEO
Cyta
Transforming Cyprus into a Digital Hub
Neocleous noted, “The geographical position of our island creates some connectivity-specific challenges. Hence, we are on a constant hunt for new, innovative solutions to navigate these challenges and provide unique solutions that deal effectively with the productivity and everyday needs of our clients.”
He added, “It is essential to keep the country and our clients connected with the outside world. Submarine cables are a great solution, though they entail complicated deployment and significant investment. However, despite all the difficulties, in the last 30 years or so, we have managed to turn Cyprus into one of the most technologically advanced countries in Europe, in terms of connectivity infrastructure. This has encouraged several international businesses and large-scale multinational corporations to set up base on our island.”
As of 2022, Cyta has direct connectivity with Greece, France, Italy, Israel, Lebanon, Syria, and Egypt, among others. Neocleous said that the international connectivity of Cyprus is more extensive and reliable than most submarine cable-based networks used elsewhere in the world. As an example, he cited recent connectivity problems in Tonga after a volcanic eruption took place in January 2022. He said, “Because the single submarine cable that connects Tonga with the rest of the world was damaged in the explosion, Tonga was not reachable for weeks until that submarine cable was repaired. Currently, 13 such submarine cables connect Cyprus with the rest of the world. This indicates the importance of our investment in infrastructure and in the quality of technology we have at our disposal.”
Cyprus’s Vision for the Future
Cyta’s efforts coincide with “Vision 2035,” the strategy of Cyprus for sustainable growth in the next decade. Vision 2035 has been a guiding plan for the nation over the last 50 years and focuses heavily on green and technologically advanced economic growth.
With regards to the current state of the economy, Neocleous noted, “COVID-19 has been a catalyst for many instrumental transformations in Cyprus. It may have laid substantial obstacles in our route for a while, but we are already emerging stronger from it. Today, the national economy is more resilient, more productive, more efficient and thanks to the digital boom demanded by COVID-19, more competitive than ever before. It helped us realize the importance of always being future-ready and most importantly, of being agile and adaptive to continuous change.”
The Challenges Cyprus Faces
The success of Vision 2035 ultimately depends on the level of participation and commitment demonstrated by businesses, Neocleous said. He went on to mention that the ecosystem in Cyprus has reached a point of maturity. As a result, existing local financing sources will not be enough to accomplish the goals without the involvement of multinational companies.
Neocleous added, “Following governmental incentives to promote economic recovery, there has been an increased interest among both local and international investors and fund managers to scale-up their investments in the economy.”
Neocleous also spoke about other challenges faced by Cyta and Cyprus as a whole. One of the most significant changes he advocated for is the case for enhanced agility to overcome the burdens of red tape for businesses in Cyprus, “We have to be fast – not just faster than before, but faster than our competitors.”
Neocleous encouraged dismantling the bureaucracy that mires the decision-making processes, and continued, “We need faster decision-making, with more executives in key positions and metrics to ensure high performance. This approach is arguably higher risk but can deliver significantly higher returns.”
He added that the government’s initiatives for restructuring public administration have been beneficial but need to be boosted in order for the country to become more competitive in the international economy, “We need to further accelerate the digitization of public administration in particular, and of the country in general. This cannot be done with local talent alone. It demands new partnership models with advanced technology companies from abroad that already have the know-how required for this leap.”
What’s Next for Cyta and Cyprus
Fulfilling the goals of Vision 2035 is currently the primary focus of Cyta. Neocleous said, “We are going to advance the digitization process of the country with all the means we have. Our next target is to build a new state-of-the-art green datacenter to host local and international companies in a secure and sustainable environment. At the same time, we want to further improve the customer experience we offer by creating emotional connections with our customers, encouraging their loyalty and in turn, their business.”
Neocleous is positive that Cyprus will succeed in strengthening its existing business relationship with the USA. While the value of services provided by Cyprus to America has already surpassed USD 1.2 billion, he felt there is more to be done. He stated, “There is a lot of room for improvement in terms of Cyprus gaining more technological knowledge from American companies. That could boost the competitiveness of businesses not just locally, but in the global market as well. There is great potential for technological improvement in the education sector, especially in publicly funded early education, as well as in healthcare. US companies have certainly a lot to contribute and their assistance could be of great value in establishing Cyprus as a regional health services center.
On the other hand, he admitted that Cyprus could do more to strengthen its economic partnership with the USA. “It goes without saying that the USA has a sizable influence in our region. What has always been a challenge for us, is highlighting the reasons why the USA should consider Cyprus as an investment destination, rather than just a sunny resort in the Mediterranean,” he added. The business and public sector reforms already underway should draw the notice of multinational companies and other potential investors.