Management

Network

PRODUCTS AND CUSTOMER SERVICE

In 2006 we revised Fixed Telephony call charges and, at the same time, introduced a range of new products such as the Fixed Line Disconnection/Reconnection Facility, Multipoint Videoconferencing and others. We also made changes to the Virtual Private Networks service with the introduction of three service quality levels: 100% Gold, 50% Gold & 50% Silver and 100% Bronze.

The Cytamobile-Vodafone portfolio was enhanced with several new services, the most important being Vodafone Mobile Connect, which provides easy, reliable wireless access via Cytamobile-Vodafone’s Third Generation (3G) and GPRS networks to the Internet and to corporate applications, and supports the sending and receiving of e-mail and SMS messages. Vodafone Mobile Connect is the first service that we are offering which exploits the potential of the 3G network that we are developing. In October 2006 the 3G network was brought into trial operation and then expanded to voice, SMS/MMS, data and videophone services. We also made progress on projects concerning our corporate responsibility, the most important of which was the introduction of the Speaking Phone service for the visually impaired.

CYTANET began to offer the Safe Internet service which permits customers to filter the online content to which they have access. Particular focus was given to the further expansion of the CYTANET Wi-Fi zone with the establishment of new Hot Spots and the provision of personalised solutions to specific customer groups such as hotels. Additionally, we further developed the CYTANET network with the installation of new international connections for access to the global Internet, related quality monitoring systems and upgrades to the equipment and connections of the NetRunner service.

In the broadband services sector, a major development was the collaboration between miVision and Lumiere TV Public Company Ltd for the transmission of LTV and Alpha programmes via the miVision platform. We also introduced TV-mail and Games on Demand to miVision. In 2006 we began offering i-choice self installed to customers and we expanded the geographical coverage of our broadband services to semi-urban and rural areas.

During the year under review we continued to provide quality, personalised service to customers via all the Organisation’s contact points (cytashops, Corporate Customer Sales Network, Call Centres, etc.) with the aid of pioneering systems such as Customer Relations Management (CRM) and Next Best Offer (NBO).

FIXED TELEPHONY SERVICES
In 2006 Fixed Telephony continued to be one of our Organisation’s most basic telecommunications services and, for this reason, we continued to enhance it with a range of new products while placing particular emphasis on call charges within the given regulatory framework.  

Specifically we introduced to Fixed National Telephony the Fixed Line Disconnection/Reconnection Facility which allows subscribers to temporarily disconnect their fixed line for up to six months without paying a line rental fee during this period. We also began to offer the Monthly User Limit by which subscribers are informed when their telephone bill has reached a certain amount which they have determined in advance, and the Business Package Charge Notification by which customers who have registered for one of the three Fixed Telephony Business Packages receive a text message whenever their telephone bill does not reach their minimum commitment. We also introduced the Multipoint Videoconferencing service which enables simultaneous telephone communication with up to 45 different points in Cyprus and abroad.

In accordance with our regulatory obligations, in December we proceeded to review our call charges and the volume discounts offered as part of the Business Charge Packages. At the same time, for high-use dial-up Internet customers, we introduced a special product which offers incremental discounts of up to 50%.

Regarding International Telephony, the three discount schemes (Friends & Family, Monthly Volume Discounts and Year-End Discount), which we introduced exactly one year ago, continued to serve a large number of home and business customers with great success. 

In addition to the revision of charges that we undertook at the beginning of the year, the International Freephone service was further enhanced by the introduction of two discount schemes (Monthly Volume Discounts and Annual Discount) for high-use customers, providing international telephony that is not only reliable and high quality but economical too.  

In 2006, we made changes to the Virtual Private Networks service, introducing three quality service levels for customers with different needs: "100% Gold" where 100% of traffic is for real-time data transmission, "50% Gold & 50% Silver" where 50% of traffic is for real time data transmission and the remaining 50% for crucial data transmission, and "100% Bronze" where 100% of traffic is exclusively for data transmission under Best Effort conditions. We also developed new speeds of up to 34Mbps while offering more attractive monthly charges and reductions to the service connection fees.

MOBILE COMMUNICATIONS
Fully aware of the competitive environment in which we are operating and of international developments in the mobile telephony sector, we are constantly improving our services in order to offer total advanced communication solutions, thus creating a new dynamic for the benefit of our customers.

During 2006, we expanded the GSM network infrastructure to enable greater capacity and optimum performance in order to satisfy our customers’ increased needs and offer top quality service, though this met with many difficulties. Our inability to develop new base stations was due, on the one hand, to delays in legislation on the location of such stations, with the subsequent inevitable negative reaction from the public and, on the other hand, to court verdicts that obliged us to demolish a number of base stations.

Compared with the end of 2005 and despite the above-mentioned difficulties, the number of base stations and cells increased by 6%.  Population coverage exceeded 99,98%, whilst geographical penetration exceeded 95% of the government-controlled areas of Cyprus. There was a 10% increase in the number of communication channels, thus enabling even greater freedom in mobile communications.

In compliance with the terms of the license for the operation of the mobile networks, two sets of measurements of exposure levels of electromagnetic fields were carried out at all base stations on CYTA’s network by the National Technical University of Athens. The surveys concluded that in the urban areas:

• Exposure levels on the roofs of buildings where base stations are installed are less than 5% of the maximum allowed level.

• The exposure level on the ground close to base stations is approximately 1% of the maximum allowed level.

At the same time, implementation of the second stage of the development of the 3G network was completed, offering the potential for faster Internet access and many innovative services which we plan to offer soon and which are expected to change the customer experience.

The 3G network started operating in April 2006 for the needs of the Vodafone Mobile Connect Service. In October, the network operated on a trial basis and was subsequently extended for voice, SMS/MMS message, data and videotelephony services (the latter enables customers to see real time images whilst talking on the phone). During the trial period, the basic rates (for voice, SMS/MMS messages and data) were the same as the corresponding rates for the 2nd  generation telephony, whilst the videotelephony service was offered at the corresponding voice rate for the period up to the completion of the technical trials with which network readiness was tested.

International Roaming Agreements covered 336 operators in 144 countries, enabling increased usage of customers’ mobile phones abroad.  At the same time, we extended the mobile telephony services that customers can enjoy when abroad. Customers of the soeasy pay as you go service can make direct calls by mobile phone via 51 networks in 36 countries and in all the other countries and networks with which we have agreements by using the code *111*. Prepaid customers of 72 foreign networks in 32 countries may also make direct calls when visiting Cyprus.

Cytamobile-Vodafone customers can easily access the Internet and their e-mail from their mobile phone while abroad. By the end of 2006, International Roaming Agreements for GPRS had increased to 107 networks in 55 countries. This facility is also offered to inbound roamers from 111 foreign networks in 55 countries.

During 2006, the first bilateral International Roaming Agreements for 3G were commercially launched. By the end of the year we had signed agreements with 14 networks in 12 countries.

By focusing on our customers’ needs and utilising the latest technology, we aim to increase satisfaction through the consistent quality of our services. To this end we enriched our portfolio in 2006 with new and upgraded services:

• Vodafone World: Aimed at monthly billed Cytamobile-Vodafone customers who travel abroad, this service enables them to take advantage of lower rates when connected to a Vodafone network or a Vodafone Partner network in the country they are visiting. Vodafone World is a new, simplified roaming pricing plan by which new flat rates apply at any time, any day to calls to mobile and fixed lines with no peak/off peak rates.

• Bonus SMS: This service, provided to all soeasy pay as you go customers without the need for registration, gives five free SMS messages once 30 SMS messages have been sent within Cyprus.

• Vodafone Mobile Connect: The first service utilising the 3G network is aimed at customers using laptop computers who work away from the office or travel abroad frequently. It provides easy, reliable wireless Internet access for e-mail and corporate applications through Cytamobile-Vodafone’s 2G and 3G networks. It also enables the sending and receiving of SMS messages. The service can be used abroad via the networks with which we have International Roaming Agreements for GPRS and/or 3G.The service was commercially launched in April 2006 in combination with three pay monthly plans, whilst in December a fourth plan was offered.

• Twin SIM: The service was upgraded with the addition of a second activation method for the second SIM card.

• Enrichment of content for Vodafone live!: A number of new agreements with content providers were signed and new services were developed under the commercial umbrella of Vodafone live! These agreements concern new games, sports websites, "Politis" newspaper, Cyprus Airways, the Cyprus Football Association and more. Since summer 2006, we have also provided a "Video Goals" service for the Cyprus Football Championship and the UEFA Champions League.

Taking into consideration both the increased needs of our soeasy customers and the latest market trends, we speeded up the redesign of our soeasy products. The new soeasy Connection Pack and Top-Up Cards were made available in December 2006. During the year, we also began to offer soeasy Top-Up codes from the cytawebshop.

In the context of our efforts to continuously improve communications with our customers, we upgraded our online presence by enhancing our website www.cytamobile-vodafone.com and proceeded to upgrade our technical support.

CYTA believes in the need to build close relationships with everyone in the society of which we constitute an integral part and in which we operate, and in this framework we undertook significant projects concerning our social responsibility and laid the foundations for greater involvement, relevant to our activities, in various sectors:

• We launched the Speaking Phone service for the visually impaired. It enables the user to hear all the information on his/her mobile phone screen thanks to "real voice" technology. This free service is provided to all Cytamobile-Vodafone customers on presentation of a certificate from the Pancyprian Association for the Blind.

• We supported the Police in their campaign to inform the public about mobile phones and driving, thus setting out a basis for a long-term collaboration. This action by Cytamobile-Vodafone was the first in a series of activities planned for the near future which will focus on the correct use of mobile telephones and aims to reach the majority of mobile users but will concentrate mainly on young people and children.

• In the context of our commitment to providing objective and scientific information to the public about the effect on health of mobile telephone base stations and mobile phone usage, we carried out a number of activities within the framework of our enlightenment campaign on Electromagnetic Fields.

With the aim of improving our relationship with our customers, we designed and implemented a dynamic, progressive and multilateral communications and public relations plan which included:

• Advertising and information campaigns for products, services and promotions.

• A dynamic presence in key points of sale and in our Sales Network shops.

• Our participation in exhibitions and events and sponsorships such as the Sakis Rouvas concert in October 2006. Several activities took place in support of the concert, the most important of which was the provision of financial assistance to the "Make a Wish" Foundation of the Pancyprian Association for Children with Cancer and Related Diseases.

INTERNET
CYTANET, the biggest Internet Service Provider in Cyprus, continued to flourish in 2006, thanks to the constant development of its network and the provision οf new services to home and business customers. The quality, reliability and professional service that CYTANET represents were all reinforced by the following achievements:

• The provision of Safe Internet for the filtering of content to which a customer has access via the Internet.

• The provision of Internet access with dynamic capacity, via ATM/Frame Relay, leased line and Ethernet connections.

• The setting of more attractive rates for home and business products thanks to constant pricing reviews.

• The upgrading of Virtual Private Networks-IP through the provision of three service quality levels and the possibility of setting up a management account.

• The upgrading of the CYTANET Wi-Fi zone through the creation of a subscription service and by enabling the purchase of a username/password by credit card.

• The further penetration of the CYTANET Wi-Fi zone with the installation of 20 new Wi-Fi Hot Spots and the provision of specialist solutions to specific customer groups such as hotels.

• The signing of an agreement with iPass for the provision of roaming services to visitors in Cyprus.

In combination with the above, we laid particular emphasis on improving the quality and reliability of the network and the services we provide. Specifically, we further developed the CYTANET network with the installation of five new international STM-1 links (155Mbps) for access to the international network and the Test Traffic Measurements (TTM) system which monitors the quality of international connections, and with upgrades to NetRunner equipment and connections. We also finalised a connection agreement between CYTANET and the Athens Internet Exchange (AIX).

Furthermore, as part of our social contribution and aiming at the further development of the Information Society and the reliability of electronic communications in education and business in Cyprus, CYTANET held two seminars on Internet security for business customers while continuing to organise free seminars on the use and potential of the Internet for primary, secondary and technical school pupils.

At CYTANET presentations at various fairs in Cyprus, our customers had the opportunity to learn about the latest Internet developments and to benefit from a number of special offers.

BROADBAND SERVICES
Broadband services have gained a significant position in our Organisation’s portfolio of services. They have been recognised as being of strategic importance for the promotion of electronic communications and the evolution of Cypriot society into an Information and Knowledge Society.

Bundled Electronic Communication Services utilise the DSL (Digital Subscriber Line) network, which has been developed to become the main infrastructure for the provision of fast Internet services, video and programmes on demand as well as other interactive services via multimedia.

i-choice, our first broadband service, offers subscribers the following:

• Unlimited usage via a permanent connection to the broadband network.

• A fixed monthly charge, with no per minute charge.

• The ability to talk on the phone and at the same time surf the Internet or connect to a company’s intranet.

• Fast connection to the broadband network.

• The flexibility of choosing the Service Provider of the subscriber’s preference.

• Access to value-added services through the i-choice portal.

• Access to multimedia services.

Our Organisation offers i-choice256, i-choice512 and i-choice1000 for home users and i-choiceBusiness and i-choiceBusinessLite for business users.

Significant projects for the i-choice service that were implemented in 2006 include:

• Achieving a significant increase to the subscriber base.

• Gradual expansion to semi-urban and rural areas.

• Launch of i-choice self installed.

miVision, our second broadband service, carries digital sound and video via a telephone line and a set-top box to the customer’s television set. CYTA was one of the first Organisations worldwide to introduce broadband TV.  

miVision, which is frequently described as "interactive television", features a broad spectrum of services as follows:

• Foreign thematic channels and all Cypriot TV channels.

• Live broadcasts of football, basketball and volleyball games.

• The ability to rent and watch recent movies on TV (Video on Demand).

• The ability to rent and play games directly from the TV (Games on Demand).

• The ability to send and receive e-mails directly from the TV.

• Electronic Programme Guide (EPG).

• Access to useful information through an information portal.

Significant miVision projects implemented in 2006 were:

• Significant increase of the subscriber base.

• Addition of new TV channels in the basic package.

• Enrichment of the live broadcasting with football, basketball and volleyball matches.

• Introduction of the interactive services TV-Mail and Games on Demand.

• Enrichment of the Video on Demand service with a wide variety of movies.

• Content upgrade of the exclusive movie channel miFilm.

GLOBAL TELECOMMUNICATIONS PRODUCTS AND SERVICES
In the context of our efforts to better serve our partners and business customers, we have redesigned and enriched our products and services portfolios as follows: 

Wholesale Voice Portfolio
The portfolio includes products for termination of outgoing traffic to most fixed and mobile telephony networks worldwide, as well as termination of incoming traffic to all fixed and mobile telephony networks in Cyprus. 

CytaWorld.Net Portfolio  
The CytaWorld.Net platform is based on the IP/MPLS protocol and currently has nodes in Lefkosia (Nicosia), Athens and London interconnected via a private fibre optic ring and with other international extensions beyond. Employing the CytaWorld.Net platform, total end-to-end solutions are provided, including provision of network-based VPNs, circuit emulation, AΤΜ/Frame Relay connections and access to the global Internet, via a single integrated, secure, broadband network.

Cable and Satellite Connections Portfolio
The portfolio includes products for the provision and resale of space segment capacity on various satellite systems, provision of satellite links and associated co-location services, provision of permanent, periodic or occasional video transmissions, as well as the provision of cable capacity on both an IRU (Irrevocable Right-of-Use) and lease basis, dedicated direct transit connections and backhaul access for submarine cables landing at CYTA’s stations.

Private Leased Lines and Signalling Portfolio
The portfolio includes products for the provision of International Private Leased Circuits (IPLCs), global Frame Relay connections via partner network operators, as well as the provision of signalling transfer facilities via CYTA’s international common channel signalling network.

Services Portfolio
Value-added services provide additional extras for the global products on offer. Services to internal or external customers include planning and operations for international facilities and networks, one-to-one consultation through products facilitators, billing and traffic statistics, restoration of submarine cable systems, network traffic management, freephone services, consultancy services for the integration, administration and central billing of submarine cable systems, as well as international roaming facilities for GSM mobile telephony.

NATIONAL PRIVATE LEASED LINES
National private leased lines remain among the first choices of business customers for the transfer of data, offering a wide range of low and high speed services.

National private leased lines are suitable for the transmission of text, picture and data, according to each customer’s particular needs. During 2006 they continued to serve hundreds of businesses, offering reliable, secure and financially advantageous solutions.

Τhe main characteristics of leased lines are their exclusive use for 24 hours a day, a predetermined charge and their ability to be adapted to the particular needs of every company through distinct solutions. 

In April 2006 we began to offer a discount on the monthly rental of lines leased for three years or more. Specifically, we offered discounts of 3%, 5% and 7% for leased lines that had operated continuously for three, four and five years respectively.

NATIONAL TELEVISION BROADCASTS
The national TV broadcast service provides TV stations with the capability of covering a variety of events through receptions and transmissions within Cyprus. The service enables live broadcasts from the premises where an event is taking place, from CYTA’s and the customer’s premises, as well as recorded broadcasts from CYTA’s premises.

CARDPHONES AND EMERGENCY CALL SYSTEMS ON HIGHWAYS
Our Organisation’s cardphones continue to enjoy widespread public use, mainly by tourists and foreign workers. They proved to be especially useful during the summer when Cyprus took in thousands of refugees from Lebanon. At the end of 2006, a total of 2.360 card- and coin-operated phones were in operation in public and private spaces for the best possible service to customers.

In 2006, the Telecard Collectors Service continued to support collectors in Cyprus and abroad, by issuing special collector’s cards and special informative literature and assisting them to obtain telecards from old and new series.

CYTA continues to operate emergency call systems on highways on behalf of the Government. The network consists of 268 telephones and covers all Cyprus’ biggest main roads and highways.

CUSTOMER SERVICE
Our ultimate objective is to recognise our customers’ needs and expectations, and this will direct our efforts to continually improve the service we provide. A full range of market surveys has delivered valuable feedback relating to face-to-face customer service as well as the degree of customer satisfaction with the products and services we offer. Furthermore, the implementation of innovative, comprehensive systems such as Customer Relationship Management (CRM) and Next Best Offer (NBO) provides a thorough insight into the needs of our customers, which in turn enables us to offer them high quality, personalised services through all available CYTA channels.

Ongoing measures to upgrade our shops are a prerequisite for the provision of all-round services in a contemporary, customer-oriented and welcoming environment. One of our priorities is to increase the commercial value of our chain of cytashops by reserving specific areas within each cytashop for telecommunications products and accessories. This allows customers to examine and compare products at ease and to make the informed choice which fulfils their personal requirements.

Our Corporate Customer Sales Network continues to support special customers as well as small and medium enterprises with an upgraded personal service. Corporate clients greatly benefit from the expertise of our telecommunications consultants who are in a position to guide them with valuable advice and services tailored to their specific needs. The Sales Network aims at establishing, reinforcing and maintaining mutually beneficial long-term relations with customers.

In addition to our face-to-face customer service, CYTA operates high-performance Call Centres, which are accessible via a single islandwide telephone number (132). The Call Centres’ trained personnel provide a full range of services including directory enquires, service requests, technical support, and faults reporting. A state-of-the-art Interactive Voice Response (IVR) system directs customers to the particular service that they require.

Internet users benefit from the convenience of our 24-hour service by visiting our electronic branch, cytawebshop, at www.cytawebshop.cyta.com.cy. The website provides easy and instant information regarding CYTA’s range of products and services, current prices and call rates, as well as the option to place orders for selected products, telephones and accessories.

Aware of the importance of making our products and services available at the greatest possible number of points of sale, we have upgraded and expanded our Dealer Network which complements our own service channels. Such dealers provide consumer products and they have also added mobile telephony services as well as i-choice and miVision to their product portfolio. Furthermore, they provide the facility to top up our soeasy prepaid mobile telephony service electronically. Our Dealer Network was also expanded to include associates who, in addition to the consumer products they offer, are specialised in the provision of corporate products such as leased lines, ATM/Frame Relay connections as well as i-choiceBusiness and Primary Rate ISDN services.

YELLOW PAGES AND TELEPHONE DIRECTORY
As in past years, in 2006 we published a new edition of our Yellow Pages and Telephone Directory, the Cyprus Visitors’ Guide and the Business to Business Directory.

The implementation of a new operating system governing the processing and pagination of the contents of our directories enabled us to introduce new advertising products to help our business customers achieve wider exposure.

The latest issue of the Business to Business Directory was significantly modified. Its upgraded contents were published in a higher quality, compact and more practical format. All the data compiled for the printed version of the Directory was also made available on CD-ROM, in both English and Greek.

ALTERNATIVE PROVIDER SERVICE
During 2006 we continued to supply the alternative providers of telecommunications services with high quality wholesale products, according to the regulatory principles of transparency, non-discrimination and cost-orientation, so as to enable them to offer their own retail services.

We revised the Reference Interconnection Offer and the Reference Unbundling Offer and proceeded to publish the Reference Bitstream Access Offer. We managed interconnection agreements with five providers of fixed telephony and agreements with a second mobile operator for interconnection, collocation, number portability and national roaming.

In 2006, we began providing unbundled local loops and sub-loops to two providers, while offering collocation in duct systems to one provider. Five providers obtained access to the Cyprus Telephone Directory Database and are offering now their own Telephone Directory Services.

MARITIME SERVICES
CYTA continued the operation of the KYPROS RADIO Maritime Station, which serves seafarers and ships at sea.

The main mission of the Station is to monitor safety and distress frequencies for ships travelling within the allocated region of the Republic of Cyprus. All relevant messages are transferred to the National Coordination Centre for Search and Rescue for operational handling. In addition, weather messages and other data are transmitted covering seafarers’ needs for communications of social and other nature.

FACILITIES TO THIRD PARTIES
In 2006 we continued to provide services to civil aviation, meteorology and commercial radio stations.

Services to the Department of Civil Aviation
CYTA is responsible for providing telecommunication facilities and electronic communication services to the Department of Civil Aviation, thus contributing to the smooth, safe, effective and efficient management of air traffic within the Lefkosia (Nicosia) Flight Information Region (FIR).

The services provided are based on international standards and the recommendations of the International Civil Aviation Organisation (ICAO). At the same time, they are in agreement with the programmes of the European Civil Aviation Organisation (EUROCONTROL).

The broad range of services offered includes reliable and high quality level communications between air traffic controllers and aircraft in the region, the retransmission and exchange of aeronautical information and meteorological announcements, the use of radar facilities, the processing of radar information and the tracking of air movements via synthetic screens, as well as state-of-the-art navigational aids (VOR, DME, DF) and Instrument Landing Systems (ILS) at the airports.

In line with the harmonisation programmes of the European Civil Aviation Organisation EUROCONTROL, implementation of the LEFCO project continued. Specifically, technical training was completed and the first session of factory acceptance tests was carried out. The project foresees the replacement of the existing Air Traffic Control Centre by a new state-of-the-art system which will contribute significantly to the upgrading of the operational capability and the quality of services provided by the Department of Civil Aviation.

Additionally, implementation of the Kionia radar project continued. Technical training was completed and factory acceptance tests began. The project foresees the establishment of a modern radar system that will replace the existing system located at Kionia station. The new radar system is expected to become operational n 2007.

Services to the Department of Meteorology
We continued to provide telecommunications facilities to the Department of Meteorology, including technical support for the operation and maintenance of the Doppler-type meteorological radar system, which enables the study of meteorological phenomena over Cyprus and in the broader Eastern Mediterranean region.

Services to Commercial Radio Stations
We continued to support the commercial radio sector by linking the studios of four private stations broadcasting islandwide with CYTA’s transmitters on Mount Olympus. Our main goal is the uninterrupted transmission of their programmes on a 24-hour basis.

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