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:: ANNUAL REPORT 2006  
 
 

Here ideas are promoted and they win prizes. Achievements and news are publicized. Innovation is taught and efforts are rewarded… At CYTA you don’t feel like an employee but rather a valuable partner!MANAGEMENT

In 2006 we continued to focus on management issues such as human resources management, business planning, research, development and Information Technology.

Specifically, regarding human resources, we began to extend the implementation of innovative systems such as Personal Competency Management, Development Centres and flexible working hours. Personnel development is particularly important to CYTA, which is why we subsidise staff participation in training programmes in Cyprus and abroad.

During the year under review, the basic aim of our communications policy was to build on and to reinforce constantly the Organisation’s Corporate Identity and Image. Furthermore, we completed the CYTA Brand Bible and the Brand Architecture.

In the area of quality, the idea.click Staff Suggestions Scheme continued to operate successfully, encouraging personnel to express their views and exploit their creativity. It is worth noting that in 2006, a total of 552 suggestions were submitted, eleven of which benefited the Organisation with revenue of £608.174. 

Our participation as a shareholder in the EURESCOM research organisation, as well as our active involvement in the activities of the Cyprus Research Promotion Foundation and the European Union’s 6th and 7th Framework Programmes, reinforced CYTA’s Research and Development sector. Our participation in the DITIS, VIDEO, LOCATE and ALIPRO projects is an indication of our progress. Moreover, as a member of international telecommunications organisations, CYTA is active in various working committees and conferences, either representing Cyprus or itself. These organisations include the International Telecommunications Union (ITU), the Association of European Telecommunications Network Operators (ETNO) and the Commonwealth Telecommunications Organisation (CTO).

Additionally, we continued to take measures to guarantee information security and to prevent and eliminate telecommunications fraud. Finally, we carried out an extensive study and analysis of all the measures that are necessary for CYTA’s smooth transition to the euro.

HUMAN RESOURCES
Human capital is the most valuable resource of every enterprise. For CYTA this is even more so, considering the extremely volatile and competitive environment in which telecommunications companies have been operating in recent years. The maximum utilisation of our human capital through the implementation of flexible human resource management systems and continuing development is a strategic goal.

During 2006, we placed greater emphasis on staff welfare by enhancing social services and other recreational, informative, social and financial programmes. We continued the implementation of teleworking for employees with special needs. Flexitime, in conjunction with the electronic timekeeping system, was implemented in more CYTA divisions.

Safe driving seminars were attended by all CYTA employees in an attempt to minimise road accidents. The downward trend of road accidents among CYTA drivers in the past three years would seem to prove the effectiveness of the seminars.

Following the successful definition of job roles for the Organisation’s permanent staff and the identification of the required competencies per job role, the CYTA Competency Framework is now being used extensively in almost all human resource activities and processes, such as recruitment, internal transfers, employee utilisation, training and development (including Development Centres), performance assessment and recognition (rewards and incentives). This process also relates to the EFQM methodology and specifically to the "People" criterion which, among other things, mandates the development of competencies, knowledge and skills at the individual, group and corporate levels.

More specifically, the Organisation continued with the implementation of Development Centres, with the primary purpose of identifying the training/development needs of the participants who are evaluated by means of a series of scientifically-based assessment methods and tools. During 2006, the team taking part in the Development Centre included all the Product Managers. The satisfaction rate of the participants and its ranking pertaining to the accuracy of the results reached 97%. Upon completion of the Development Centres, personal development plans for each participant were formulated and their implementation has already begun.

Continuous training and development of human resources is of great value to our Organisation and we encourage it by giving staff the opportunity to participate in fully-subsidised training programmes, both in Cyprus and abroad. In 2006, the average number of training days per employee per year was 4,1 while training and development expenses represented 3,98% of the Organisation’s payroll. This compares favourably with the relative indicators of other successful international organisations.

Since 2006, on-the-job training has also been taken into account when measuring annual training days per employee. In the near future, additional learning and development methods such as e-learning will be introduced.

As a strong supporter of life-long learning, CYTA subsidised the tuition fees of members of staff participating on a part-time basis in work-related academic programmes by offering a substantial number of scholarships during 2006. Specifically, eight scholarships were granted, seven for the successful completion of a Master in Business Administration (MBA) degree and one for a diploma in Telecommunications & Information Technology.

Maintaining good Industrial Relations has always been an important goal. During the year under review, mutually acceptable solutions were agreed upon regarding important work-related issues while, at the same time, negotiations on the signing of the new Collective Agreement continued with the Unions.

As part of our strategy for better management, it was decided that an Employee Opinion Survey would be conducted on a regular basis. Through this survey, employees are given a chance to voice their opinions regarding their work environment, in an attempt to identify areas for improvement and hence increase job satisfaction. We are convinced that employee satisfaction is directly related to performance and productivity, which ultimately affects customer satisfaction.

The second Employee Opinion Survey began in November 2005. Some 2.284 employees participated (86%) - a response rate which is considered extremely high and reflects the strong desire of members of staff to express their views. Ôhe survey was completed during 2006 when the results, at both organisational and departmental level, were presented to all employees and action plans were developed.

In the context of our cost reduction efforts, we introduced the recruitment of hourly-paid staff on a contract basis in jobs where it has been shown that a permanent full-time staff is not necessary. Similarly, we employed freelance professionals such as Social Workers, Civil Engineers and Architects.

The Oracle Integrated Human Resource Management System was brought into full operation during 2006. Oracle’s human resource application is considered to be one of the best in its sector. It supports a large spectrum of human resource processes, while offering the benefit of having all previousy fragmented human resource-related information concentrated in a single database.

The "Self Service" module is the innovative part of the application. It gives all employees online access to their personal and professional information and, at the same time, enables managers to access their employees’ professional information. Managers will thus be in a better position to utilise their employees’ abilities. This module, currently operating as a pilot scheme, will gradually be expanded to cover the whole of the organisation during 2007.

COMMUNICATIONS STRATEGY
The basic objective of our communications policy in 2006 was to build on and enhance CYTA’s Corporate Identity and Image. This policy was reflected in our main communications message that "We are the leading provider of Integrated Electronic Communications and we give people freedom of choice about how and how much they interact with the world".

The extensive use of qualitative and quantitative market research as a strategic tool continued throughout 2006. The recording of trends and perceptions of Cypriot society has helped us to better understand our customers’ way of thinking and to identify the means to achieve improved communication with consumers.

2006 was a productive year which marked the completion of the Brand Bible (containing our principles, values, vision, mission and communications strategy) and Brand Architecture. Also, during the year, we completed the methodology for the measuring and constant monitoring of our brand value/productivity.

At the same time, we began the gradual harmonisation of all our brand’s contact points with our new strategy and values at both the level of external communications and consumer experience and within the Organisation.

We increased the pace of work dealing with the graphics for CYTA’s visual identity and image, which will be completed during 2007 and will bring about a change of the Organisation’s logo.

Media Relations
With the aim of providing timely and reliable information to the public, regular Press Releases were issued and distributed to the media during 2006. Senior officials of the Organisation and the CYTA Press Officer participated in radio and television interviews and discussions, interviews were given to the press, articles and other material were published, and we organised press conferences and information campaigns on various issues.

Cyprus International Fair
Our participation in the 31st Cyprus International Fair was extremely successful and created a very positive impression on visitors.  Based on everyone’s need for "communication" and playing with this keyword, the CYTA pavilion was full of images of sea, earth and sky as well as people from all over the world. Visitors to the pavilion had an opportunity to learn more about developments in the telecommunications sector and to enjoy impressive multimedia presentations while taking advantage of special offers and participating in competitions organised by the Fixed Telephony, Cytamobile-Vodafone, CYTANET, i-choice, miVision and Directories services and by CYTA subsidiary Emporion Plaza.

"Telecommunications Street"
During 2006 we continued to publish CYTA’s monthly information bulletin "Telecommunications Street" which is distributed to all present and retired members of staff and to outside recipients including representatives of the media.

Websites
Our benchmark corporate website www.cyta.com.cy  is modern and functional, providing easy navigation for obtaining information.

The homepage provides access to other useful CYTA sites such as the online store cytawebshop, Cytamobile-Vodafone, CYTA e-bill, the Yellow Pages and the Telephone Directory as well as those of its subsidiaries. It also contains information about our Organisation, cytashops, our products and services, CYTA calls for tenders, Annual Reports, and an archive of issues of "Telecommunications Street" and Press Releases.

Within the Organisation we operate our own intranet, which has been upgraded to an Intranet Portal and is a fast and reliable means of internal communication and information exchange.

All of the above contribute not only to the fast and efficient provision of information but also to saving paper in the context of our broader environmental policy.

Business Planning
The Organisation recognises that one of the most significant ways of implementing its strategy is through its activities. Their total management is a competitive advantage which will improve the competitiveness and quality of our products. For this reason, reengineering of our activities began on a trial basis and will continue systematically based on the Business Process Management methodology.

In the quality sector, 2006 was the year in which we implemented the new self-assessment methodology, drawn up in 2005, for the Units and the Organisation as a whole based on the EFQM model. The new methodology is based on self-assessment with the use of questionnaires and takes place during a one-day workshop which includes an explanation of the Model via a game created by outside consultants. Other Cypriot organisations have also shown interest in the game and a related article was published in the online EFQM magazine Excellence One. As a result of the self-assessment, more than 30 improvement projects were started.

The idea.click Staff Suggestions Scheme continued to operate successfully in 2006. A total of 552 suggestions were submitted, of which eleven led to financial benefits amounting to £608.174 while eight participated in an international competition in which CYTA won one gold, three silver and three bronze medals.

RESEARCH AND DEVELOPMENT
CYTA is a shareholder in EURESCOM, which deals exclusively with research programmes in the telecommunications sector. It is also a founder and active board member of the Cyprus Research Academic Network, which supports the creation and management of a network for the provision of high quality services, aiming at the promotion, development and support of research and academic activities in Cyprus.

In 2006 we participated in a number of national and European research programmes as follows:

  • We provided the DITIS research project with telecommunications facilities as part of efforts to implement a universal access system for the database of the Pancyprian Association of Cancer Patients and Friends so as to provide greater support for cancer patients throughout Cyprus.

  • We participated in two projects (VIDEO and LOCATE) financed by the Cyprus Research Promotion Foundation, dealing with the distribution of video services via GPRS/UMTS and algorithms for the provision of location-based services.

  • Under the 6th Framework Programme of the European Union (EU), IST sector, we participated in the ALIPRO project. ALIPRO dealt with the alignment of national research programmes of the new EU member and candidate states, focusing on mobile communications technologies. The project ended in March 2006. CYTA’s participation was a significant success since it provided an opportunity to promote Cyprus in Europe regarding its activities in the research and development sector. More information on the project and its results can be found at http://alipro.eurescom.de/

Finally,  CYTA operates an incentives scheme in order to encourage the voluntary participation of its employees in research and development projects, offering participants a percentage of the total funding secured for each project.

INFORMATION TECHNOLOGY
CYTA, as a modern telecommunications organisation, uses information technology to automate its processes and operations and to offer its customers a complete, exceptional experience. Customers are not interested in having to deal with all the complexities associated with an electronic communications service. They simply wish to enjoy the benefits of a single bill for all their services, or to be able to order any communications service through a single visit to a cytashop, a simple call to a call centre or a visit to CYTA’s website.

Information technology is the empowering tool that enables the personalisation of our products to the specific needs of each and every customer, and the creation of a framework that enables our customers to view a single image fitting their specific needs.

Further to the improvement of the quality of service to customers, we continued to develop our internal network even further, enriching our suite of tools, content and accessibility and using in-house development, new software and total solutions to support the Organisation’s business processes.

In 2006, information technology was used to add intelligence to our products and services in our quest to anticipate our customers’ ever-expanding needs. Cutting-edge services such as miVision, value-added services for mobile telephony and web-based services have benefited most from this technological impact.

Our Organisation aims to provide exceptional service to its customers by offering them a complete range of electronic communication products. Information technology strives to make our customers’ interaction with CYTA easier, more effective and more enjoyable.

FRAUD CONTROL/INFORMATION SECURITY
At CYTA we consider that the security of our networks and products is integrally linked to quality. Together, they give our Organisation a competitive edge.

CYTA ensures that its personnel, customers and associates are regularly updated with information with the objective of raising their awareness and vigilance concerning telecommunications fraud and information security.

Information Security
Our Organisation is active on issues pertaining to information security through specific measures and processes such as regular security checks and hacking attempts, physical security and monitoring of online access.

On issues of information security and the protection of personal data, we follow a holistic approach based on risk assessment and international models. The ISO27001 certification process for selected services/networks is already under way.  We are shortly planning to set up at corporate level an Information Security Management System which will cover all our main activities.

Fighting Fraud
We also take measures to prevent and stamp out telecommunications fraud, a phenomenon that is assuming worrying proportions all over the world. 

For the detection and investigation of instances of fraud against CYTA and its customers, a specialist team using dedicated technology works in conjunction with various Services both within and outside the Organisation.

FINANCIAL ISSUES
The challenges of the new environment in which CYTA operates demand the provision of upgraded and enhanced services to all financial data users with a responsibility for strategic planning, financial decisions and the evaluation of new business projects and processes in our Organisation.

This role has been successfully undertaken, in addition to traditional financial activities such as the costing and billing of products and services, the preparation of financial statements in accordance with International Financial Reporting Standards, the equitable management of reserves and proper budgetary control.

Throughout 2006 we ensured compliance with all laws and regulations, including those required by the Office of the Commissioner of Electronic Communications and Postal Regulation, and took all the necessary steps for implementing decisions relating to the retail and wholesale markets.

An especially important and noteworthy project for the Organisation during 2006 was the undertaking of an extensive study and analysis of the impact on CYTA’s processes and systems of Cyprus’ adoption of the euro in January 2008.

With the aim of providing better quality services to customers, we introduced the online payment of bills via CYTA e-bill as well as itemised call statements for the current month, in addition to the previously introduced itemised statements for already issued bills. Information has been provided since 2006 via the Cytamobile-Vodafone Menu and the CYTA Call Centre.

In addition to the above, we also introduced products which aim to protect customers from the excessive use of their services.

REGULATORY AFFAIRS
During 2006, CYTA participated in public consultations on market analysis and completed important work such as the preparation and publication of the Offer for Local Loop Unbundling.

SUPPORT SERVICES
The Organisation’s smooth operation depends mainly on the efficient and integrated management of its infrastructure which includes land, buildings and vehicles as well as systems security, fire safety and guarding services.

During 2006, we continued to plan new buildings and to upgrade and extend existing buildings all over Cyprus. We completed preliminary drawings for the new IT Building and for the renovation/upgrading of the old ELECTRA Building. A planning permit application for the new Larnaka Central Offices was submitted, as was a building permit application for the new Stores at Dhali.

Building permits were granted for the upgrading and extension of the Aglandjia building, the renovation of the Personnel Services Building and the Archive Building at Lakatamia, which will be converted into a Network Operations Centre. We also finalised the design to upgrade the Lefkosia (Nicosia) Head Offices Amphitheatre. The design for the renovation and seismic upgrading of the Lefkosia (Nicosia) Head Offices is under way. Tenders were invited for the Lakatamia Network Operations Centre and for the seismic upgrading of most of our manned buildings. Construction of the new Ammochostos (Famagusta) Regional Offices and the upgrading and extension of Aglandjia Building got under way. The plant room, the Lefkosia (Nicosia) Head Offices car park, the installation of covered parking at manned buildings and the renovation of the Regional Offices in Lemesos (Limassol) were completed. Finally, we renovated the cytashops at the Regional Offices in Limassol, Larnaka, Pafos and Kakopetria. They now operate on the basis of a totally new concept. These renovation plans will gradually cover all cytashops throughout the island.

During the year under review we brought our new Integrated Electomechanical Equipment Management System (IEEMS) into partial operation.  Once completed, the system is expected to contribute significantly towards improving the reliability of power supply equipment and climate control systems which, in turn, support CYTA’s telecommunications equipment. Consequently, the IEEMS should bring about significant savings by adopting energy management techniques. We continued to take measures to help protect the environment by replacing old, inefficient airconditioning equipment utilising Ozone-depleting refrigerants with new, environmentally friendly cooling systems and we began recycling old refrigerants and other CFC-based gases. We also adopted the latest EU directives on the environment and replaced most of our old, inefficient vehicles with new energy-efficient, low-emission ones. Furthermore, we placed orders for the replacement of old batteries, aiming to improve DC power supply systems and, by extension, the reliability of CYTA’s services.

As far as the security of our premises is concerned, the Pancyprian Security System was further expanded in accordance with the relevant plan to cover access to all buildings.  We also continued to enhance security measures regarding cytashops and the guarding of our buildings. The Authority's cooperation with the Cyprus Police continued. We consider the execution of drills at all our manned buildings, in accordance with CYTA’s Civil Defence Plans, to be extremely important.

MATERIALS MANAGEMENT SERVICES
During 2006, we continued to handle and manage contracts for the timely supply of materials/equipment and services to our Organisation.

In addition, we continued to place and handle orders, store materials and equipment and distribute them from the Central Stores to various sites.

With the aim of improving efficiency and productivity, procedures were initiated for introducing modern storage systems and procedures. A new software programme is being designed for the management of materials and equipment.

NATIONAL AND INTERNATIONAL RELATIONS
CYTA actively participates in the procedures and activities of major international telecommunications organisations. The Organisation is represented in various working groups and conferences organised by these bodies, in order to monitor technological and other developments in the field of telecommunications.

Cyprus is represented by CYTA in the International Telecommunications Union (ITU), which is a United Nations organisation. Our Organisation is also a founder member of the Association of European Telecommunications Network Operators (ETNO), the Global IT Association for Telecommunications (ETIS), the European Telecommunications Standards Institute (ETSI) and an active member of the Commonwealth Telecommunications Organisation (CTO).

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