Filenews 1 May 2024
If the state wants to have more successful semi-public organisations and for Cyta to continue to be successful, it must see semi-public commercial organisations differently. It must recognize them legally and institutionally as revenue-generating businesses and as an essential arm of the state's economic policy. A telecommunications company cannot be expected to constantly surpass international private giants, be profitable and bring dividends of millions to the state, but at the same time act as an extension of the public sector."
Cyta is the only semi-governmental organisation that has successfully fought the battle of competition with the private sector, sending the message that "the state can too". Do you think that other semi-governmental organisations can follow Cyta's example? EAC, say?
Cyta's results in recent years do indeed give a strong signal from a successful semi-governmental organisation, but no one should be under any illusions about the ease of the undertaking. What Cyta achieves is by no means a given. To achieve this, we fight daily – which our competitors do not – to overcome countless obstacles: an anachronistic institutional framework, outdated legislation and a public mentality that has been overcome in the market for decades.
If the state wants to have more successful semi-public organisations and for Cyta to continue to be successful, it must see semi-public commercial organisations differently. It must recognize them legally and institutionally as revenue-generating businesses and as an essential arm of the state's economic policy. A telecommunications company cannot be expected to constantly surpass international private giants, be profitable and bring dividends of millions to the state, but at the same time act as an extension of the public sector. Political will is needed to make bold moves, to create a new model of semi-governmental organisation for all state-owned enterprises engaged in commercial activity. Only with this review will we have a serious chance that the success of state-owned enterprises will be sustainable.
From the financial results of the Organization we found again that over the last several years the organization has recorded continuous increases in profitability, every year. Is there scope for a small market such as Cyprus, with great internal and external competition, to continue improving profitability? Are there limits for Cyta?;
The very small size of the Cypriot market leaves little room for continuous growth and increased profitability. This applies to all players. Therefore, a business that wants to grow and remain robust needs increased alertness and insight to find new sources of revenue, beyond its traditional market.
It is a matter of survival for any business to have the flexibility and freedom of movement in its commercial activity, when it sees an opportunity to be able to freely exploit it. If it doesn't, its competitors will, resulting in improved profitability and robustness, with long-term negative consequences for the business. Unfortunately, at the moment there are too many limits for Cyta, which are set by various external factors and it is only a matter of time before these limits have a substantial negative impact on its performance.
There was a lot of discussion in March - and continues to be - about the limits that Cyta has on its business activity. We assume that you experienced disappointment when the Administrative Court ruled at first instance that Cyta cannot, by virtue of its legislation, be active in the installation of software and smart electricity meters. While the legislation allows EAC to maintain its own desalination plant, for commercial use, profitable indeed. Do you think changes need to be made to the legislative framework? Should and will Cyta be able to expand into other sectors on a commercial basis?
In the last thirty years the shifts of the telecommunications landscape have been seismic and sequential. The sector has transcended its traditional boundaries and today, involving an extremely dynamic convergence of technologies, has evolved into what we know as ICT (Information & Communication Technology). In other words, traditional telecom providers around the world are gradually evolving into providers of digital services, financial services, energy, etc.
Nevertheless, Cyta's institutional framework remains in the 1960s, with procedures leading up to the Council of Ministers or Parliament to approve investments and recruitment and which inevitably end up becoming a political issue.
For us, modernising this framework is a matter of survival. Cyta's strength, of which all Cypriots are proud, depends on its ability to evolve, adapt and evolve in order to be able to offer Cypriots services comparable to those enjoyed by citizens of advanced countries. This should be understood by all those who want there to be limits on Cyta's areas of activity. If we want Cyta to be financially robust ten years from now, we must enable it to make use of its assets – its clientele, data and infrastructure, adopting a wider range of activities with multiple benefits for Cyta, customers and the state itself.
As far as the Court's specific decision is concerned, we have already appealed it and we will await the outcome. Our clear position is that the existing law already has elements that allow Cyta to act in a wider context of activities.
A lot has been said about your decision to become active in the production of green energy through Cyta Power. Is it a business move or will you limit yourself to using photovoltaics for self-consumption?
The very high cost of electricity is a reality that negatively affects the whole society and economy of our country. We keep hearing that we have no options, that there are few alternatives, that we are late and we have to wait longer for prices to fall. Sure, we need to be self-critical about how we got here, but we shouldn't dwell on the past.
We consider it our duty to inform the state about Cyta's potential to make a substantial contribution to solving this problem and bringing down electricity prices for consumers and businesses. Studies by external firms clearly show that Cyta has many possibilities (resources, partner network, systems, call centre) to alleviate the problem. We also have the business readiness to get involved in the energy sector and this is indicated by the creation of the subsidiary Cyta Power. At the same time, we are putting our infrastructure at the disposal of the state, which is our owner, and we expect it to take the relevant decisions.
The only announcement at this stage is that Cyta is proceeding responsibly and with strategic investments in green energy, towards its own energy independence. We pursue it for sustainability reasons: to reduce our environmental footprint but also to save our resources. Specifically, by 2027 we want to be energy self-sufficient with green energy.
It was recently stated by the Chairman of the Board of Directors that Cyta is updating the study for the creation of the Data Centre, for which several companies have expressed interest in participating in the share capital. Describe to us this project, its importance and prospects and what we should expect in the coming period in terms of its implementation.
We are launching the design of a green Regional Data Center along the lines of the major European ones. It will be able to host Cypriot and international businesses, enhancing Cyprus' role as a telecommunications centre in the region. Alongside its commercial use, it will be designed to specifications to accommodate government infrastructure. Today we are in the final stage of determining who will participate as partners of Cyta in the partnership, in which it is a prerequisite that Cyta will have the majority of shares.
What do you consider to be Cyta's most important success in your five years as Chief Executive Officer?
The most important success of the last five years is that we have established ourselves in the consciousness of our customers and the wider society, as a technology organization, whose quality, reliability and efficiency allow it to compare favourably with the best in Europe. This for me is an achievement that belongs to Cyta and its people, especially considering the size of the Cypriot market and the fact that we are talking about a public organization.
I consider another important success to be the fact that we managed to be considered by the Cypriot State as its key partner and arm of the country's digital transition. A force for positive change, which can push the state apparatus, businesses and society to evolution and progress.
What do you see as the biggest challenge for Cyta today? How can the state, which is your owner, help you?
Clearly, the biggest challenge is to modernize our legislative framework, so that the antiquated model of semi-governmental organization of the 1960s stops limiting us. To cease to act as a burden. To allow us to stand with claims in one of the toughest competitive environments of our time, technology.
That is why we ask in all tones to be heard, with evidence, logic and prudence. To give us the flexibility that will allow us to adapt to the needs of the times, as they are constantly changing and shaped. To be able to do at least as much as the competition does, otherwise we do not expect miracles.
On a theoretical level, we have support from the state, but when it comes to difficult decisions, there is a timeless problem. When it comes to differentiating Cyta from the rest of the public sector, piecemeal comparisons, reactions and fear of change begin. With minor exceptions, proposals for meaningful reforms usually end up gathering dust in various drawers.
Bearing in mind Cyta's longstanding ties with Cypriot society, how do you perceive the organisation's role as a participant in social dialogue?
The size of the organization and the penetration it has had in Cypriot society all these decades of its history, make its role decisive. We recognise this and take our share of responsibility.
For example, the first thing I signed as CEO of Cyta in 2019 was the European Charter for Diversity. Last year, we appointed a Diversity, Equity and Inclusion Officer to lead a team of executives in designing and adopting relevant strategy and policies.
The values of equality, diversity and acceptance are our deep conviction, not words of the air. As these principles become entrenched in Cyta's operations and affect hundreds of families of our executives and customers, they inevitably reverberate beyond the Organisation, becoming part of the social fabric.
We recently completed the connection of children's homes with the courts of Cyprus, so that, through electronic testimony, child victims of sexual abuse are not forced to testify in courtrooms confronting their abusers, but can do so in an environment properly structured to offer them support in the difficult times they are subjected to.
It was an action that gave great satisfaction and pride to every Cyta executive. It was one of the moments when we felt that really, technology exists to serve people.
Your tenure has been linked to an upward trajectory of the organisation, which is recognised by all. How have those five years been for you? How did you experience this very important challenge for your professional career?
The universal recognition of our positive course is what makes me come to work every day with a smile and positive energy. From day one I felt the weight of responsibility to meet the expectations of colleagues, customers and society. The pressure was too great, there was no grace or adjustment period, we had to bring measurable results immediately. The results were necessary to re-believe in our strengths and be inspired to achieve higher goals than ever.
Within Cyta, I never felt alone or weak. I have always been fortunate to have remarkable colleagues by my side, with whom we overcame obstacles, problems and disappointments. The 10 years of fiber optic implementation became 3, the fastest network in Cyprus became the fastest network in Europe and Cyprus from digital laggard, in 2025 will become the first country in Europe to have 100% fiber optic and 5G coverage. And how we achieve all this has its own importance.
Because, beyond our business and technological achievements, fully aware of our social role, we act as a force for positive change for the country and its people.
For this reason in particular, I am doubly proud of what we have achieved over the last five years. Without a doubt, Cyta is the crowning achievement of my professional career.
