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Products & Services

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ANNUAL REPORT 2007

 
 
   
| Chairman's Speech | Message from the Deputy CEO | Board and Management
| Corporate Governance | Corporate Social Responsibility | Management
| Products and Customer Service | Subsidiaries Companies | Network
| Financial Report | Auditor's Report & Financial Statements | Offices and cytashops
 
   

 

Products and Customer Service

Fixed Telephony continued to be one of our Organisation’s most basic telecommunications services in 2007. During the year we enhanced our range of telecommunications packages and discount schemes, offering customers new and inexpensive choices such as the Classic Package 2.

The Cytamobile-Vodafone portfolio was enhanced with the commercial launch of Mobile Email services, which aim to provide customers with advanced solutions to their business requirements. In the framework of our compliance with the European Regulation on International Roaming, on 30 August 2007 we introduced new, lower International Roaming charges for customers travelling within the European Union. At the same time the number of International Roaming agreements with foreign networks increased.

We continued to closely monitor international developments in mobile telephony in 2007 and, aware of our responsibility to Cypriot society, we carried out measurements on exposure levels of electromagnetic fields at all CYTA base stations in collaboration with the University of Cyprus.

CYTANET continued to make excellent progress thanks to the continuous upgrading of its network and the provision of new services. It proceeded with substantial price reductions to the NetRunner range of fast Internet access products for home and business users, while enhancing and upgrading the free facilities that are offered with the access products.

In 2007, with the aim of developing broadband use in more areas to satisfy our customers’ needs, we further expanded our network to semi-urban and rural areas, exceeding 90% population coverage and substantially increasing our customer base.

Furthermore, work continued on replacing the existing radar system at Kionia with the completion of factory testing, the dismantling of the old system and the start of the necessary construction work on the buildings at the Kionia Station. The project provides for the purchase of a new, highly advanced radar system which is due to come into operation in 2008.

Fixed Telephony Services
In 2007, Fixed Telephony continued to be one of our Organisation’s most basic telecommunications services. During the year, while keeping within the regulatory framework, we enhanced our range of telecommunications packages and discount schemes, offering customers new and inexpensive choices.

We introduced the Classic Package 2, a pioneering package which, for a fixed monthly charge, gives customers 100 minutes of free calls to CYTA’s fixed telephone network.

Responding to our customers’ need for less expensive International Telephony, we introduced a discount scheme for the 1018 and the VoIP International Telephony services. This scheme offers up to 7,5% discount in the form of a year-end credit note.

With our sights firmly focused on our customers' needs and taking advantage of today's technology, we enhanced our business products portfolio with the introduction of the Gold version of the Single Number service (7777). The Gold version gives customers more options such as the ability to adjust the technical settings to the level they require and the gathering of statistics on successful, unanswered and abandoned calls.

Mobile Communications
We continued to closely monitor international developments in mobile telephony in 2007. As we operate in this dynamic environment in a serious, responsible manner, aware of our responsibility to Cypriot society, we are alert and constantly developing with the aim of responding to the growing demands of our customers in a consistent manner.

In 2007, work continued with considerable difficulty on the expansion of the GSM radio access network so as to increase its capacity and maximise its efficiency with the aim of providing an excellent quality of service and satisfying our customers’ needs. Delays to the legal regulation of the installation of base stations did not allow us to implement our expansion plans, and as a result, the net increase in the number of base stations was limited to 1,45% compared with 6% the previous year.

Population coverage exceeded 99% and geographical coverage was over 96% in the government-controlled areas of Cyprus. The number of communication channels rose by 3%, thus enabling even greater freedom in mobile communications.

In the context of our compliance with the terms of the license for the operation of mobile networks, measurements of exposure levels of electromagnetic fields were carried out throughout the year at all base stations on CYTA’s network in collaboration with the University of Cyprus. The conclusions of the surveys have not changed since 2006. The highest electromagnetic field exposure levels in areas where mobile communications base stations are located do not exceed 2% of the maximum reference level permitted by law.

At the same time, work continued on the optimisation of the 3G network with the aim of providing a better customer experience.

International Roaming Agreements increased to 349 in 148 countries and by continuously adding new destinations we enabled greater use by customers of their mobile phones while abroad.

Customers of the soeasy Pay As You Go service can also use their mobile phone while abroad for direct calls via 81 networks in 54 countries, while in all other countries and networks with which we have agreements, they can do this by using the code *111*. Prepaid customers of 87 foreign networks in 46 countries may also make direct calls when visiting Cyprus.

We expanded the mobile telephone services that our customers can access while abroad. Cytamobile-Vodafone customers can easily access the Internet and their e-mail from their mobile phone and they can also use Vodafone Mobile Connect, BlackBerry from Vodafone and Windows Mobile Email to stay in touch with their businesses and associates.

By the end of 2007, International Roaming Agreements with foreign networks for GPRS had increased to 132 in 69 countries. This facility is also offered to inbound roamers from 138 foreign networks in 69 countries when visiting Cyprus.

The number of International Roaming Agreements for 3G, which supports higher speeds for data services, rose significantly and by the end of the year 26 such agreements had been concluded with networks in 21 countries.

In the framework of our compliance with the European Regulation on International Roaming, on 30 August 2007 we introduced new, lower International Roaming charges for customers travelling within the European Union (EU). The purpose of the European Regulation was to regulate wholesale and retail International Roaming charges within the EU and in other countries whose charges are regulated by the EU. Cytamobile-Vodafone successfully applied all the provisions of the Regulation on keeping its customers properly informed. Moreover, the new, lower rates are the same for the customers of both Pay Monthly and so easy Pay As You Go services as part of our simple, easy to understand charging policy.

In 2007 we continued to focus on our customers’ needs and, utilising all the potential of state-of-the-art technology for the provision of services that add value, we enriched our portfolio with new services while proceeding to upgrade existing ones:
Missed Call Notification:
This is aimed at Cytamobile-Vodafone Pay Monthly and soeasy
Pay As You Go customers. After activating the service, customers receive a free text message containing the last five mobile or fixed telephone numbers to call their mobile phone when it was switched off or out of range.
soeasy
Pay As You Go:
We took a number of steps to improve customer satisfaction for those choosing the soeasy Pay As You Go service. Specifically, we launched the free soeasy Money Transfer service which enables customers to transfer funds from their account to that of another soeasy customer by keying in the code #105#. We also increased the period of validity of the free talk time worth £3/€5,13 that is given to customers on activation of the connection package. The period is now 90 days and applies to all soeasy connections from 1 July 2007. At the same time we proceeded with a technical upgrade of the soeasy service with the aim of adding new applications and innovative services which enhance the customer experience. In the course of the year we also further expanded the electronic channels via which customers can obtain soeasy top-up codes.
Vodafone Mobile Connect:
Taking account of the special needs of our business customers, we offered the USB Modem which enables wireless access to the Internet, e-mail and company intranets, without having to connect the computer to a mobile or fixed telephone.

Video Call:
The service enables Cytamobile-Vodafone customers to see the person they are talking to live on the screen of a 3G mobile phone, both in Cyprus and abroad. A basic requirement for the service to operate in Cyprus is that both caller and recipient have a 3G mobile phone and are in areas covered by the Cytamobile-Vodafone 3G network. The service is also available in countries with which there is an International Roaming Agreement for Video Calls.

Enrichment of content of Vodafone live!:
A number of new agreements were signed with sports, entertainment and information content providers while new services were developed under the Vodafone live! umbrella!

The year was also marked by the commercial launch of Cytamobile-Vodafone’s Mobile Email services with the aim of providing customers advanced solutions to their business needs:
BlackBerry from Vodafone
In collaboration with Research In Motion and as a partner of Vodafone, we launched BlackBerry from Vodafone in December 2007. The service combines innovative smartphones, software and services, enabling easy access to e-mail (including attachments), telephone, calendar, web, multimedia and other applications. With the aim of fulfilling the requirements of the full range of our business customers, we offer BlackBerry Server for large enterprises and the BlackBerry Internet Service for small businesses and individuals.
Windows Mobile Email
In collaboration with Microsoft, since the end of 2007 we have provided Windows Mobile Email, an integrated service offering e-mail via mobile phone. With this, Cytamobile-Vodafone customers have the Microsoft Outlook (e-mail, contacts, calendar and tasks) function and experience on their mobile phone. Cytamobile-Vodafone also offers Microsoft Hosted Exchange for companies without their own in-house e-mail server.

The above services are provided as add-ons to the two Cytamobile-Vodafone Pay Monthly packages.

At the same time, in the framework of CYTA
's policy of frequently reviewing its rates and charges, in 2007 we made significant reductions to charges for our services in Cyprus and abroad. Specifically, we reduced charges for Vodafone Mobile Connect and Mobile Data for easy access to the Internet, e-mail and corporate applications via mobile phone. The new lower Mobile Data rates also apply to BlackBerry from Vodafone and Windows Mobile Email.

In 2007 the entire Organisation was involved in the transition to the euro. Technical work for the transition to the new billing currency for Cytamobile-Vodafone services was completed smoothly. 

In the context of CYTA’s compliance with the Numbering Regulations issued by the Commissioner of Electronic Communications and Postal Regulation and due to the use of almost all the available numbers in the series 99××××××, we obtained and began to give customers numbers in the new series 97××××××.

As an integral part of the society in which we operate, we undertook a series of projects that concern our social responsibility, laying the foundations for greater involvement in areas related to our activities.

With the aim of maintaining and strengthening our relationship with our customers, we designed and implemented a dynamic, innovative 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 the optimisation of international and local sponsorships such as the UEFA Champions League and a concert by Helena Paparizou.

Internet
CYTANET, the biggest Internet Service Provider in Cyprus, continued to flourish in 2007, thanks to the constant development of its network and the provision ïf new services to home and business customers. With the aim of providing integrated electronic communication solutions with quality, reliability and professional service, as well as greater use of the Internet and the services that CYTANET provides, we completed the following projects: 
Significant reductions to the charges for NetRunner fast Internet access products for home and business users.
The enrichment and upgrading of the free facilities offered with access products, so that they provide an integrated Internet services package.
With home Internet access products, the following are provided free of charge:
i. Personal webspace for customers’ own web pages.
ii. Three additional e-mail addresses.
iii. An Internet security package containing antivirus and anti-spam software, and the Safe Internet service for filtering Internet content to which users have access.
With business Internet access products, the following are offered free of charge:
i. Webspace for the company’s websites.
ii. ÅCorporate e-mail with an unlimited number of company e-mail addresses, antivirus and anti-spam protection.
iii. Management of the company’s domain name.
Expansion of a customer’s ability to self-manage his/her service via MyCYTANET Services.
The provision of Satellite Internet for fast Internet access via satellite.
The upgrading of Virtual Private Network-IP products through the creation of low-use products which provide an economic solution to companies making only occasional use of their network.
The further penetration of the CYTANET Wi-Fi zone with the installation of 34 new hot spots and the provision of specialised solutions to specific customer groups.
Enabling customers in Cyprus and abroad to watch sports events and matches online.
Offering special rates to students 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 a new STM-4 link (622Mbps) and numerous new STM-1 links (155Mbps) for access to the international network, and the system that monitors the quality of network connections.

Additionally, as a further social contribution and with the aim of making the best and safest use of electronic communication in education, CYTANET offered the Safe Internet free to all public schools in Cyprus so that the Internet content to which pupils have access is filtered, and we continued to organise free seminars on the use and potential of the Internet for primary, secondary and technical school pupils and for Parents’ Associations and other organisations.

Through CYTANET presentations at various exhibitions and fairs in Cyprus, our customers had an opportunity to learn about the latest Internet developments and to benefit from various special offers.

i-choice and miVision Broadband Services
The miVision and i-choice broadband services have an important place in our portfolio of products and they have been recognised as having strategic significance for the encouragement of electronic communication and the transformation of Cypriot society into an Information and Knowledge Society.

Broadband products utilise the DSL (Digital Subscriber Line) network, which has been developed to become the main infrastructure for the provision of fast Internet services, television and other interactive services via multimedia.

i-choice customers can enjoy the following:
Unlimited usage via a permanent connection to the broadband network.
A fixed monthly charge, with no additional charges.
The ability to talk on the phone and at the same time surf the Internet or connect to a company’s intranet.
The choice of Internet Service Provider.
Access to the content of the i-choice portal (www.i-choice.com.cy).
Access to multimedia services.

Based on our customers' needs, we offer i-choice256, i-choice512 and i-choice1000 for home users and i-choiceBusiness and i-choiceBusinessLite for business users. During 2007, with the aim of extending broadband use to more areas so as to satisfy our customers’ requirements, we proceeded to further expand our network to semi-urban and rural areas, exceeding 90% population coverage and significantly increasing our customer base.

At the same time we began looking into the provision of higher speed i-choice products and the integration of i-choice and NetRunner for Internet access via CYTANET so as to enhance the customer experience.

miVision, our second broadband service, carries digital sound and video to the customer’s television set via a telephone line and a set-top box. miVision is one of CYTA’s most innovative services and our Organisation was one of the first telecommunications organisations in the world to introduce such a service.

miVision is described as "interactive TV" and features a broad spectrum of services as follows:
Foreign thematic channels and all national Cypriot TV channels.
Premium channels.
Live broadcasts of football, basketball and volleyball games.
Renting the latest movies directly via the Video on Demand service.
Sending and receiving messages via the TV.
Renting games via the TV.
Electronic Programme Guide.
Access to useful information through an Information Portal.

Significant miVision projects implemented in 2007 were:
A significant increase to the subscriber base.
The addition of new TV channels in the basic package.
The upgrading of the exclusive miFilm channel.
The addition of four new LTV channels (LTV2, LTV3, LTV Sports1, LTV Sports2) to the miVision premium package.
The enrichment of live broadcasts with football, basketball and volleyball matches.
The expansion of the platform’s capacity for the provision of additional channels.
The speeding up of significant projects concerning the upgrading of the user interface, the provision of a second decoder and the provision of the bundled service miVision + i-choice BusinessLite.

Global Products and Services
The following Global Product and Service Portfolios serve the needs of internal (within CYTA) and external customers. The external customers comprise for the most part national and international providers, associates and corporate clients.

Wholesale International Telephony 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 an independent submarine cable ring and other international extensions beyond. Via the CytaWorld.Net platform, total end-to-end solutions are provided, including international virtual private networks, international leased line circuit emulation and broadband Internet access.

Cable and Satellite Connections Portfolio
The portfolio includes products for the resale of space segment capacity on various satellite systems, the provision of satellite links and associated co-location services, international television broadcasting and products for the provision, lease, interconnection or access of global cable capacity.

Private Leased Lines and Signalling Portfolio
The portfolio contains products for the provision of international private leased circuits, global Frame Relay and Asynchronous Transfer Mode (ATM) connections, as well as the provision of common channel signalling transfer facilities.

Services Portfolio
Specialised and personalised products add value and support to the broad range of international telecommunications products. Services include corporate customer support consultancy services, international telephone traffic statistics and predictions, national media restoration services, freephone services, consultancy services for the administration of submarine cable systems and international roaming facilities for GSM mobile telephony.



National Private Leased Lines
In 2007, national private leased lines remained 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 2007 they continued to serve hundreds of businesses, offering reliable, secure and financially advantageous solutions.

Ôhe main characteristics of leased lines are their exclusive use on a 24-hour basis, a fixed monthly charge and their adaptability to the particular needs of any company through customised solutions.

Ethernet Services
During 2007 we focused on speeding up the introduction of new Ethernet services and began providing them on a trial basis to major customers with a view to their commercial launch in 2008. The new services, which are aimed at the business community, are expected to replace the existing Leased Line, Frame Relay and ATM networking services, given that they are more user-friendly and faster and come at a lower price.

National Television Broadcasting
Via the national television broadcasting service, TV stations are able to cover a variety of events with reception and transmission within Cyprus.

The service enables live broadcasts from a venue and/or the transmission of recorded highlights, by providing part or all of the telecommunications link with the TV station.

Hosting/Co-Location Service
The hosting/co-location service was introduced in 2007 and allows third parties to house their equipment on CYTA’s premises.

Where CYTA customers wish to install equipment in areas where they do not own buildings, CYTA is able, on certain conditions, to host their equipment on its premises, providing at the same time a broad range of telecommunications services.

Cardphones and Emergency Telephones on Highways
Our Organisation’s cardphones continue to enjoy widespread public use, mainly by tourists and foreign workers. At the end of 2007, a total of 2.260 card- and coin-operated phones were in operation in public and private spaces for the best possible service to customers.

In 2007, 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 continued its successful operation of emergency call systems on highways on behalf of the Government. The network of 268 telephones covers all Cyprus’ biggest main roads and highways.

Customer Service
CYTA creates new situations and opportunities for development, prosperity and quality of life. Firmly focused on the customer, we are highly adaptable so as to provide the best possible service via updated systems and methods. Through regular market surveys and with the help of specialised systems such as Customer Relationship Management (CRM) and Next Best Offer (NBO), we stay informed and develop an understanding of our customers’ needs and expectations, with the main aim of continuously improving the top quality, personalised service that we provide.

Through our cytashop sales network we give customers a chance to become familiar with the complete range of our Organisation’s products and services. Our trained sales force advises customers and proposes the most suitable solutions according to their particular needs and budget. Particular emphasis is given to letting customers see and try out services before purchasing.

Our Corporate Customer Sales Network continues to support special customers as well as Small and Medium Enterprises with an upgraded personal service. Corporate clients receive expert advice and personal service from our telecommunications consultants on issues of concern to them. We began the project to expand the Sales Network by having specialist consultants approach smaller enterprises and self-employed professionals by telephone. Our aim is to provide total solutions which arm them with autonomy and flexibility in their chosen sector. The Sales Network’s vision continues to be that of establishing, reinforcing and maintaining mutually beneficial long-term relations with customers.

Via the CYTA Call Centre we continued to offer high quality telephone assistance, having expanded its working hours. Contact with the Call Centre is made through the islandwide number 132 and customers can obtain information about our products, place orders, report possible faults in their services and receive technical support. Navigation of the Call Centre’s service menu is via the advanced Interactive Voice Response (IVR) system by which customers can easily obtain the service they require.

The Directory Enquiries Service 11892, operating in a highly competitive environment, remains the leading service of its kind in Cyprus. Through a simple and practical facility it gives customers fast, reliable and inexpensive information relating to directory enquiries.

For technology buffs, we offer 24-hour service via our online store cytawebshop (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) and to purchase telephones and accessories.

Aware of the importance of making our products and services available at the greatest possible number of points of sale, we upgraded and expanded our Dealer Network, to which we are continuously adding new chains of stores. We place special emphasis on enhancing the range of products offered through our Dealer Network, which now includes Cytamobile-Vodafone Pay Monthly and Pay As You Go services, i-choice and miVision, as well as the opportunity to switch from other mobile telephony service providers to CYTA and keep the same number. Through the Dealer Network we also continue to offer top-up talk time for the soeasy Pay As You Go service.

Regarding the installation of services ordered via CYTA’s various service channels, our experienced, trained staff visits customers at their premises, providing the necessary equipment and all possible assistance in order to familiarise them with the operation of the services that we provide.

With the aim of raising customer satisfaction and confidence in us, we encourage customers not to hesitate in making any complaint and we promise to respond with the best possible solution as quickly as possible.

Telephone Directories - Print, Online and CD-ROM
With a modern style and appearance, the printed versions of the latest editions of the Yellow Pages, the White Pages, the Business to Business Directory and the Cyprus Visitors’ Guide were published in 2007.

All the directories are available online at www.cytayellowpages.com.cy. Featuring a user-friendly interface and with data updated daily, the upgraded directory website is a unique information search tool and, at the same time, an effective vehicle via which businesses and professionals can promote their products and services.

Moreover, the Business to Business Directory 2007 was also made available on CD-ROM, in Greek, English and Russian as an additional means of serving the business community.

Wholesale Products
During 2007 we continued to supply the alternative providers of telecommunications services with high quality wholesale products according to the regulatory framework and the regulatory principles of transparency, non-discrimination and cost-orientation.

We managed contracts and offered the following wholesale products:
Interconnection
Carrier Selection and Pre-selection
Wholesale Line Rental
Local Loop Unbundling
Wholesale Broadband Access
Wholesale Leased Lines
Building Co-location
Antenna System Co-location
Ducting System Co-location
Number Portability
Access to the Cyprus Telephone Directory Database
National Roaming

In 2007 we published the Wholesale Line Rental and Wholesale Leased Lines Offers and we revised other reference offers and agreements for wholesale products. We also proceeded to develop support systems for the provision and management of wholesale products.

Facilities to Third Parties
In 2007 we continued to provide services to the Departments of Civil Aviation, Merchant Shipping, and Meteorology and commercial radio stations.

Services to the Department of Civil Aviation
CYTA provides technical support (the provision and maintenance of equipment) to the Department of Civil Aviation, which is responsible for the smooth, safe, effective and efficient management of air traffic within the Lefkosia (Nicosia) Flight Information Region (FIR).

The support provided serves the needs of the Department of Civil Aviation which are based on the international standards and recommendations of the International Civil Aviation Organisation (ICAO) and are in compliance with the programmes of the European Civil Aviation Organisation (EUROCONTROL).

The broad range of support services includes corrective and preventive maintenance to such a standard as to guarantee reliable and high quality level communications between air traffic controllers and aircraft, the monitoring of aircraft movements via radar facilities, the retransmission and exchange of aeronautical information and meteorological announcements. The equipment being maintained includes navigational aids such as VOR, DME, DF at Larnaka and Pafos airports.

In the context of harmonisation with the programmes of the European Civil Aviation Organisation EUROCONTROL, implementation of the LEFCO project continued with the installation of equipment in specially-rented, customised premises. Acceptance testing is due to begin in the first half of 2008. 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, the project to replace the radar system at Kionia continued with the end of factory acceptance tests, the dismantling of the old system and the start of construction work on the Kionia Station buildings. The new radar system is expected to become operational during the second half of 2008.

Services to the Department of Merchant Shipping
CYTA continued the operation of the Cyprus 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 reports and other data are transmitted covering seafarers’ needs for communications of a social and/or other nature.

Services to the Department of Methodology
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 commercial stations broadcasting islandwide with CYTA’s transmission station on Mount Olympus for the uninterrupted transmission of their programmes on a 24-hour basis. At the end of June 2007, this service was terminated on the initiative of CYTA and the transmission equipment was replaced with equipment purchased by the radio stations themselves.
 

 
 
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