Privatization in telecommunications in Cyprus: Comparing with UK, Germany and Belgium

Abstract

This master thesis aims to explore the privatization as an option for the national telecommunication provider in Cyprus, Cyta, and make recommendations on the strategy that must be followed in order for the organization to be transformed into a strong and profitable institution. In particular it examines a) the general theoretical framework of privatization policy b) the transformation process of the national telecommunication providers in UK, Germany and Belgium and c) the telecommunication sector in Cyprus and the presence of Cyta in it. For the purposes of the thesis, data were collected from the existing literature, from Cyta’s and OCECPR’s annual reports and statistical bulletins, from the Press and from my personal experience as employee in the examined organization. Then a SWOT analysis is conducted in order to define the internal and external environment which is crucial for the decision to privatize or not, the organization. The results of the thesis indicate that privatization is a promising option for the future of the organization, since it will free the organization from the constraints, economic and other, of the public and broad public sector. Private shareholding seems necessary to ensure the survival and the soundness of the organization