The Cyprus Electronic Communications Code has completed 12 months of continuous operation, after its adoption in March 2022.
Background
In March 2022, Cyprus transposed the EU Directive 2018/1972 establishing the European Communications Code (the ECC) through the enactment of the Regulation of Electronic Communications Law of 2022 (also known as the Cyprus Electronic Communications Code (the CECC). In addition, existing laws were amended in order to give effect to the promulgation of the new ECC.
The Regulation of Electronic Communications and Postal Services Law was amended so as to exclude the chapter concerning electronic communications (which is now part of the ECC) whereas the Radiocommunications Law was updated to include the provisions of the ECC on matters related to spectrum.
The ECC
The ECC was adopted by the European Union in December 2018 with the aim to update and modernise the regulatory framework for electronic communications in the European Union, promote investment in high-quality networks, protect consumers and promote competition.
The ECC requires Member States to provide regulatory predictability, which means that electronic communications providers have greater certainty about the regulatory environment in which they operate. This, in turn, helps to encourage investment in high-speed networks, such as 5G, which are essential for the delivery of innovative services and the development of the digital economy. In addition, the ECC requires that electronic communications providers to provide clear and transparent information about their services and pricing, and that they ensure that their services are of a high quality. Consumers also have the right to switch providers more easily, and to be compensated for any loss of service or quality of service issues.
Further, ECC creates a level playing field for all electronic communications providers, regardless of their size or market share. This means that larger providers are prevented from using their market power to prevent smaller providers from competing and that all providers have access to the same regulatory environment. This, in turn, helps to encourage innovation and the development of new services, which benefits consumers. Lastly, the ECC requires that Member States harmonise their national regulatory frameworks, which means that electronic communications providers can operate across borders more easily. This has the potential to create new opportunities for electronic communications providers and to promote innovation and competition across the European Union.
The CECC
Below are some of the novel provisions introduced in the CECC:
- Broadened definition of “electronic communication services”
The ECC and CECC have introduced a revised definition of "electronic communication service" that encompasses a new category called "interpersonal communication services". These services facilitate interpersonal and interactive exchange of information through electronic communications networks between a limited number of individuals, as determined by the sender. Such services include voice calls, emails, and messaging services.
This change aims to broaden the scope of the legislation on electronic communications to cover Over the Top providers, which have entered into the traditional telecommunications market in recent years. These interpersonal communication services can be either number-based or number-independent.
Under the Cyprus Law, microenterprises that offer number-independent interpersonal communication services are subject to certain obligations applicable to electronic communication service providers. Additionally, the provision of number-independent interpersonal communication services is exempt from the general authorization regime.
The definition of "electronic communication service" now explicitly includes machine-to-machine communications and transmission services for broadcasting.
The ECC clarifies that communication services provided to end-users in exchange for personal or other data, access to information without actively supplying it, or exposure to advertisements as a condition for accessing the service, shall be treated as services provided for remuneration. Thus, these services are considered electronic communication services under the ECC.
The ECC seeks to promote the deployment and adoption of Very High-Capacity Networks (VHCNs) and brings about several changes to the regulatory framework for network access. The powers introduced are intended to shift the market away from reliance on the incumbent's infrastructure towards an environment that encourages investment from both incumbents and new players. Some of the provisions also aim to reduce costs and simplify the process of network expansion.
In this regard, the ECC and the CECC regulate co-investment. These rules stipulate that when an operator with significant market power (SMP) collaborates with an operator without SMP, the new infrastructure will be exempt from the access rules that would otherwise apply to the SMP operator. This is accompanied by the introduction of a commitment procedure, whereby the Commission is empowered to make access and co-investment offers from an SMP provider binding.
- Strengthening of consumer rights
The ECC strengthens consumer protection through provisions covering non-discrimination, pre-contractual information for end-users, offer comparison, tariffs, service quality, and monitoring of consumption levels within subscription.
Although Cyprus law establishes the foundation for consumer rights by imposing obligations on providers of Electronic Communication Services, specific details of these obligations will be determined by the Communications Commissioner through relevant Regulatory Decision, including the content and format of information to be provided by providers to consumers and any summaries thereof and any additional information for consumers with disabilities.
Pre-contractual information requirements do not apply to microenterprises that solely provide number-independent interpersonal communication services, unless they also offer other electronic communications services.
The ECC aims to standardize measures and procedures for spectrum management, while also recognizing the authority of member states to manage spectrum in accordance with their national requirements. It enhances powers to ensure efficient and effective use of spectrum, promotes competition, facilitates the timely deployment of 5G services, and facilitates widespread availability of mobile connectivity. In order to achieve these goals, ECC introduces a minimum license duration of 15 years, with option for extension, and establishes detailed processes for the renewal, transfer, sharing, and lease of spectrum rights.
The ECC introduces changes to the requirements of member states for universal service, expanding it to include broadband access. In accordance with CECC, the Communications Commissioner is responsible for ensuring that consumers, including microenterprises and non-profit organizations, have affordable access to sufficient broadband internet service and voice communications at fixed locations and to ensure the affordability of broadband internet access and voice communications services in locations other than fixed locations, if deemed necessary to enable consumers' full social and economic participation in society. The specifics of the universal service obligations, including the details of such provisions, will be published by the Commissioner in a Regulatory Decision.
Conclusion
The CECC introduced novel provisions such as a broadened definition of electronic communication services, access regulation and strengthening of consumer rights and it is expected that the CECC will help promote investment in high-speed networks, create a level playing field for electronic communication providers, and harmonize national regulatory frameworks. However, the actual impact of its efforts will largely depend on implementation measures at the local level.
By: Munevver Kasif
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