Cyta proceeds with restructuring plan

6 Jan 2015

Cyprus Telecommunications Authority (Cyta) has selected German company Detecon International to conduct a study into the telco’s organisational structure. Detecon, which is partly owned by telecoms giant Deutsche Telekom (DT), will be tasked with Cyta’s organisational restructuring prior to its forthcoming privatisation. TeleGeography notes that in September 2014 Aristos Damianou of the Progressive Party of the Working People (Anorthotiko Komma Ergazomenou Laou, or AKEL) pointed out that choosing Detecon to oversee Cyta’s re-structuring ‘is a possible scandal and a conflict of interest’, as DT had previously expressed interest in acquiring Cyta in the event of its privatisation.

In a press release, Cyta clarified that the decision to award the contract to Detecon was taken by the executive management and was approved by the Board of Directors. The operator also highlighted that Detecon is ‘an independent company within the group of Deutsche Telecom’ and that the contract comprises a strict confidentiality clause.

As previously reported by TeleGeography’s CommsUpdate, the Memorandum of Understanding (MoU) signed between the Cypriot authorities and the European Commission (EC), the European Central Bank (ECB) and the International Monetary Fund (IMF) in November 2013, stipulated that the government should present a privatisation plan for a number of state-owned enterprises (SOEs) and semi-governmental organisations (SGOs), including Cyta, by the end of December 2013. The government subsequently approved a roadmap for the privatisation process before the deadline expired, and confirmed that the procedure will start in 2016, with Cyta due to be the first company to be privatised. State spokesperson Christos Stylianides clarified that none of the SOEs and SGOs will be 100% privatised, as the government plans to retain a stake in each one.