During the meeting of the House of Representatives last night, the proposed increases to certain services of CYTA, the Cyprus Telecommunications Authority, were frozen until 28 February 2002. The services in question were for internet access, domestic calls and for home installation services. The majority vote counted 22 votes by AKEL and KISOS for the freezing of the increases and 18 against by DISY.

The House Communications & Works Committee will use the time up to 28 February 2002 to study the forthcoming report by CYTA, detailing its financial status. The parties’ opposition to increases is largely based on the fact that CYTA has a large surplus of funds.

At the same time, the Ministry of Communications & Works has submitted a plan to the House Communications Committee whereby CYTA would be turned into a private company with the government holding a share of 94% and the remaining to be distributed amongst employees and pensioners of CYTA. The plan has the apparent support of 90% of the employees of the organisation. In such case, a regulator would be put in place to ensure price control. According to the Ministry’s plan, in the event of privatisation of CYTA, employees rights would be unaffected.