The Telecommunications Bridge between East and West: The Case of Cyprus

1
The Telecommunications Bridge between East and
WestThe Case of Cyprus
June 2007
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Cyprus an advantageous location

• Positioned at a strategic location in the Eastern
  Mediterranean at the crossroads of Europe, Asia
  and Africa, Cyprus serves as a bridge between the
  European Union and the Middle East...
• Area 9,250 square km
• Population 800,0000

ASIA
EUROPE
AFRICA
3
Introduction to CYTA,the Cyprus
Telecommunications Authority

• Public Utility Organisation, established by Law
• The major entity authorized to provide national
  international communications in the Republic of
  Cyprus
• Board
• Appointed by Council of Ministers
• Accountable to Council of Ministers through the
  Minister of Finance
• Board comprises
• Chairman
• Vice-Chairman
• Seven Members

4
Introduction to CYTA,the Cyprus
Telecommunications Authority (cont)

• CYTA takes full advantage of the strategic
  geographical location of the island
• Number of DELs (analogue) 380,000
• Number of ISDN lines 25,000 (64kbps channels
  81,000)
• GSM mobile subscribers 780,000
• Dial-up internet users 40,000
• Broadband customers 85,000
• i-choice (high-speed internet) 60,000
• mivision (IPTV) 5,000
• i-choice mivision 20,000
• Number of CYTA employees 2,455

5
Introduction to CYTA,the Cyprus
Telecommunications Authority (cont)

• FINANCIAL RESULTS 2005
• Revenue from services CY 231 millions (approx
  USD 538 millions)
• Earnings before interest, taxes, depreciation and
  amortizations (EBITDA) CY 72 millions
• Surplus from services CY18 millions
• EBITDA margin 31
• Reserves CY 210 millions

6
International Organisations

• CYTA is member and actively participates in many
  International and European Organisations such as

• ATM Forum
• C7 Forum
• GSM MoU Assoc.
• EADP
• ERWG
• MEDRET
• OSS/ICDS Forum
• ITFF/ITTS Forum

• ITU
• CTO
• ETSI
• ETNO
• ETIS
• EURESCOM
• EFQM
• ENPM

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CYTA International Network

• Switching Systems
• Nicosia International Telephone Exchange
• Limassol International Telephone Exchange
• IP/MPLS Node (CYTANET/CytaWorld.Net)
• Transmission Systems
• Submarine Fibre Optic Cable Systems
• Satellite Telecommunications Network
• Network Management and Support Systems

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CYTA International Network (cont)
Nicosia
Paralimni
Larnaca
Ayia Napa
Troodos
ERMIS
MAKARIOS
UGARIT
Paphos
APHRODITE 2
TARTOUS (SYRIA)
Pentaskhinos
Yeroskipos
CHANIA (CRETE)
TEFKROS
Limassol

CIOS
CADMOS
LEV (MINERVA)
K?NIRAS (MINERVA)
ISRAEL
ITALY ISRAEL
BEIRUT (LEBANON)
MINERVA
SEA ME WE 3
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MINERVA a New Cable Sub-system

• A new submarine fibre optic cable system is under
  development
• Building on existing relationship with Telecom
  Italia Sparkle via the Med Nautilus and LEV
  submarine cable systems
• Fully operational by December 2007

Extensions to Middle East, Far East and beyond
Mazara
Yeroskipos
LEV
Extensions to Europe and beyond
Terrestrial segment
Kiniras
Pentaskinos
Catania
MINERVA Subsystem
New segment
Branching Unit
Med Nautilus
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The CADMOS - UGARIT - BERYTAR Ring

• CADMOS, UGARIT and BERYTAR cable systems have
  been upgraded to form a self-healing ring
• Mutual restoration facilities are provided
  between the systems

terrestrial
to Jordan
Tartus
Pentaskinos
ALETAR
UGARIT
Extension to Europe and beyond
to Alexandria
CADMOS - UGARIT - BERYTAR Ring
BERYTAR
Beirut (Jeideh)
CADMOS
terrestrial
Beirut (Ras-Beirut)
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Submarine Cable Systems

• Worldwide connection
• SEA ME WE 3, operated 1999
• co-owner in transatlantic cable systems (e.g.
  TAT-12/13, TAT-14)
• co-owner in regional systems worldwide (e.g.
  ARIANE 2, CELTIC, SAT3/WASC/SAFE)
• To Greece and beyond (East West Europe)
• APHRODITE 2, operated 1994
• To Israel
• CIOS, operated 1994

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Submarine Cable Systems (cont)

• To Syria
• UGARIT, operated 1995
• To Lebanon
• CADMOS, operated 1995
• To Israel and Italy
• LEV, operated January 1999
• Interconnected via MINERVA, 2007
• Black Sea (Bulgaria, Ukraine, Russia)
• BSFOCS, operated September 2001
• Major Investors ARMENTEL, BTC, CYTA, OTE,
  UKRTELECOM WESTELCOM

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Submarine Cable Systems (cont)

• CytaGlobal has developed an extensive submarine
  fibre optic cable network in the Eastern
  Mediterranean basin, employing state of the art
  technology and full restoration to connect Cyprus
  with neighbouring countries and international
  networks beyond
• CytaGlobal is continuously evaluating the
  connection of Cyprus to other planned optical
  submarine networks the world over
• Provides consultation, integration,
  administration, restoration and central billing
  services, for submarine cable systems on a global
  scale

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Submarine Cable Systems (cont)
UGARIT
SMW-2
ARIANE-2
APHRODITE-2
SMW-3
SMW-3
LEV
ALETAR
SMW-2
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Satellite Systems

• Cyprus a strategically situated
  telecommunications gateway
• unique geographic position
• view of major satellite orbital arcs
• excellent cable infrastructure, offering global
  connectivity
• Two Earth Station Sites MAKARIOS and ERMIS with
  a total complement of more than 20 antennae
• Major Satellite Earth Stations with
• INTELSAT, EUTELSAT, NSS, ASIASAT, SES,
  INTERSPUTNIK, ARABSAT

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Satellite Systems (cont..)

• IRIS Gateway Satellite Services Ltd
• CYTA wholly-owned subsidiary company
• Offers Turnaround Services between the
  worlds most
  popular satellites (DVB platform provided)
• IRIS facilities co-located at CYTAs teleports
• In association with partners, CYTA makes
  available VSAT Services providing Pan-African
  coverage with single high power C-band beam,
  high power Ku-band spot beams over Western Asia
  and Middle East and Pan-European coverage with
  single high power Ku-band beam

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extensive satellite coverage
Intelsat 10-02
AsiaSat 2
Intelsat 904
ArabSat 2A
Eutelsat
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Global Internet Connectivity
CytaGlobal Hellas ??
SEABONE, Italy via Med Nautilus
Cyta UK Ltd
SEABONE, Italy via SMW3
Peering Agreements
C-NAP
KPN, UK via SMW3
International ISPs
PCCW, UK via Med Nautilus
National ISPs
KPN, UK via Med Nautilus
CytaNet Retail
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GytaNet IP-MPLS Network
CytaGlobal Hellas AE
Cyta UK Ltd
Cyprus
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CytaWorld.Net Global IP - MPLS

• Global IP-MPLS connectivity
• Major nodes in Nicosia, Athens (CytaGlobal Hellas
  AE) and London (CYTA UK Ltd), with international
  extensions
• Integrating voice, data and video into a single
  global network
• Secure, flexible, scalable broadband network
• Services provided via CytaWorld.Net include
  MPLS-VPNs, IP Transit, VoIP

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International Network Traffic Management

• According to ITU-T Rec. E.410 E.415
• Provides real-time international network
  monitoring performance, best-cost-routing and
  statistics
• Enables rapid corrective action, by applying
  Network Traffic Management Controls
• Objective to manage the international voice
  network, and maximise Quality-of-Service and ASR

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International Network Statistics

• International PSTN/ISDN Circuits
  5,900
• Countries with Direct Routes 48
• Countries and Territories with IDD Service
  240
• Number of Operators with Direct Routes
  63
• Global Internet connectivity (STM-1)
  14
• Direct 64 Kbps signalling links (SS No7 ) 62
  
• GSM International Roaming (networks)
  341
• International private leased 2Mbps circuits
  455
• International transit leased 2Mbps circuits
  826

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A few of the products currently being offered by
CYTA on a nationwide basis

• Basic Telephony ISDN
• GSM Mobile Telephony
• Private Leased Line Services
• High-speed internet via ADSL
• IPTV and Video-on-demand
• Videoconferencing
• Voice Mail Services, Audiotex
• E-commerce
• ATM, FR, IP-VPNs
• Maritime, Civil Aviation Radio/TV Broadcasting
  Facilities

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International/Carrier Services Products

• Wholesale Voice Products (including IFS/UIFN)
• Dedicated Transit Connections
• Capacity Transfer (cable, satellite)
• Internet Connectivity
• Signalling Transfer Facilities
• Cable Restoration Facilities
• Co-location Outsourcing Services
• International Private Leased Circuits
• Satellite Turn-Around Services VSAT Services
• Submarine Cable Consultancy Services
• ATM / FR Private Virtual Circuits
• IP-MPLS Virtual Private Networks

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Cyprus Hub Objective

• to establish itself as the most important
  regional telecommunications and information
  technology hub in the Eastern Mediterranean
• CytaGlobals Implementation Strategy
• Enhance/extend its telecom infrastructure
  globally, by participating in regional
  international projects
• Introduce, promote and support superior products
  and services
• Offer flexible and economical solutions in the
  Eastern Mediterranean,
  Balkans, and Middle East
• Set-up Points-of-Presence and wholly
  owned
  subsidiaries, in Greece, UK and elsewhere

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European Union

• Cyprus has had an association agreement with
  European Union since 1.6.1973
• Telecommunications Market in Cyprus fully
  liberalised since 1.1.2003
• Tax reform (in effect as from 1.1.2003)
• conforms with European Union regulations and OECD
  requirements
• maintains Cyprus competitiveness as an
  International Business Centre
• enhances Cyprus attractiveness as a suitable
  jurisdiction for holding international companies
• Full member of European Union on 1.5.2004

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European Union ( cont)

• CYTA is committed to support and to provide
  infrastructure and services to the academic
  institutions in Eastern Europe and the
  Mediterranean, in collaboration with the
  University of Cyprus
• CYTA participates with other East Mediterranean
  Telecom operators in EU development programs such
  as MEDA and EUMEDIS
• Cyprus serves as a bridge between the European
  Union and the Middle East...

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Cyprus, a Centre for International Business

• Strategic Location, at the crossroads of Europe,
  Asia and Africa
• Member of UN and its Specialised Agencies
• Member of Council of Europe, Organisation of
  Security and Co-operation in Europe and
  Commonwealth
• High GDP (PPP) per capita (2006) US 22,700
• Open Free Market Economy
• Fiscal and other Incentives for Investors

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Cyprus, a Centre of International Business (cont)

• Modern and efficient legal, accounting and
  banking services
• Highly educated, versatile and skilled work force
• Economy driven by thriving Tourist and Service
  sectors
• Since 1/10/2004, FDI Policy is fully liberalized
  for both EU and non EU nationals, in most sectors
  of the economy
• International Financial and Business Centre
• 1,200 International Business Corporations (IBCs)
• 6th leading maritime nation in the world
• 30 foreign Banks

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Conclusions

• CYTA
• co-owns, operates and has access to global and
  regional cable and satellite network systems
• is committed to meeting the area's ever expanding
  telecommunications needs and business goals via a
  portfolio of competitively priced and flexible
  products
• has evolved into a keen, customer driven
  enterprise
• is well equipped with the necessary resources to
  undertake regional projects in co-operation with
  EU, other international bodies and interested
  companies

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Conclusions ( cont)

• CYTA, through active involvement in
  international communications, has
• acquired high international reputation
• won the trust of neighbouring countries
• developed superb regional and global
  connectivity
• established itself as the major provider of
  capacity, services and solutions in the Eastern
  Mediterranean region and beyond
• Cyprus has developed as the most important
  regional telecommunications and information
  technology hub in the Eastern Mediterranean, and
  the bridge between the EU and the Middle East

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The End!

• Thank You!