The Cyprus Telecommunications Authority (CyTA), a state-run telecommunications provider, has historically distributed various promotional benefits, including discounted services and complimentary equipment, to different groups. These initiatives, often referred to as "freebies," have been the subject of public scrutiny and official inquiry. The available information details specific instances of these offers, the intended recipients, and the official justifications provided by the organization. Understanding these practices provides insight into how a state-owned utility manages customer relations and public service obligations through promotional activities.
Historical Context of CyTA Freebies
In 2014, a significant report surfaced regarding the distribution of freebies by CyTA. The Auditor-general, Odysseas Michaelides, provided the House Public Expenditure Control committee with a list of freebies valued at €60,000 that had been given away in the previous year. The recipients of these items included political parties, former state officials, mayors, and football clubs. The freebies consisted of electronic devices and coupons.
The Auditor-general characterized the practice of giving away such items to non-business clientele as "reprehensible." A key argument against this practice was the assertion that the service needs of state officials should be funded by the government, rather than provided directly by officials at CyTA. The committee chairman, Georgios Georgiou, indicated that the issue was scheduled for discussion in early November.
In response to these reports, CyTA’s spokesman, Lefteris Christou, offered a defense of the organization's actions. He stated that the gifts were distributed within the framework of a general practice designed to enhance relationships with customers and associates. He further claimed that such practices are standard in the telecommunications industry worldwide. Regarding the specific distribution, Christou noted that the majority of the freebies were given to business clients, and only a small number were given to those who did not meet the standard criteria. He stated that CyTA had taken action to address these exceptions.
CyTA also issued a specific announcement to correct reports that the current President of the Republic had received free equipment. The utility clarified that the equipment in question was given on December 31, 2013, and therefore belonged to the previous administration.
Discounted Services and Disaster Relief Initiatives
Beyond the distribution of physical goods, CyTA has also utilized promotional offers to support specific causes or customer bases. Following the devastation caused by Typhoon Haiyan (Yolanda) in the Philippines in November 2013, CyTA announced a discount on calls to the Philippines to assist Cypriot residents in contacting family.
The offer, announced a week after the typhoon struck, provided a 20 percent discount on calls from both mobile phones and landlines until December 15. This initiative allowed the Cypriot Filipino community to communicate with home during a crisis. Additionally, CyTA highlighted its "soeasy Freebies" package, which offered customers up to 90 free minutes for overseas calls with every top-up, along with a 20 percent discount for calls made between 8 p.m. and 8 a.m.
Scrutiny Regarding Free Services for Public Officials
The distribution of free or discounted services to government officials has been a recurring point of contention. In 2014, Greens MP Giorgos Perdikis requested information from the permanent secretary of the Finance ministry regarding which officials benefited from free CyTA services or reduced rates. This inquiry followed reports in the daily newspaper Phileleftheros.
CyTA spokesman Lefteris Christou denied that the telecommunications authority offered free services to MPs or other state officials. He clarified that "The only free service we provide the state is free Cytavision for the presidential palace." Christou justified this specific provision by noting that the platform carries a variety of news channels necessary for palace officials to stay informed on current affairs.
Following this statement, MP Perdikis expressed satisfaction, acknowledging that his information had differed from the official statement provided by CyTA. The inquiry process itself drew attention, as Perdikis chose to address the permanent secretary directly rather than submitting a formal question through standard House channels, a move speculated to be intended to prevent the inquiry from leaking to the press prematurely.
Customer Acquisition and Retention Strategies
CyTA’s approach to freebies appears to be part of a broader strategy to maintain relationships with various stakeholders. The spokesman’s reference to "enhancing relations with customers and associates" suggests that these benefits serve as a tool for customer retention and goodwill generation. While the Auditor-general focused on the impropriety of gifting to non-business entities, CyTA emphasized the business utility of these gestures.
The organization's "soeasy" brand specifically utilizes a freebies package to incentivize usage. By offering free minutes and discounted rates during off-peak hours, CyTA attempts to compete with other providers like MTN, which also offered free minutes for calls to the Philippines during the same crisis period. This competitive dynamic suggests that freebies are also a standard marketing tactic within the Cypriot telecommunications market.
Regulatory and Ethical Considerations
The tension between CyTA’s promotional activities and public accountability highlights the complex position of a state-owned utility. While private companies generally have broad discretion in how they market their services and reward loyalty, state-owned entities are subject to greater scrutiny regarding the use of public resources.
The Auditor-general’s intervention suggests that there are boundaries to what constitutes acceptable "customer relations" when the customer is a political party or a state official. The concern centers on the potential for these freebies to influence political relationships or provide personal benefits to officials at the expense of the state.
CyTA’s defense relies on the argument that these are standard industry practices. However, the public release of the €60,000 figure indicates that the scale of these distributions was significant enough to warrant official investigation. The distinction made by CyTA between business clients and non-business recipients is a critical element of their defense, implying that the bulk of the spending was commercially motivated rather than politically driven.
The Role of Cytavision
Cytavision, CyTA's television service, plays a specific role in these promotional activities. It is the medium through which free service is provided to the Presidential Palace. This service is framed not as a luxury but as a necessity for governance, specifically to provide access to news channels.
This specific instance of a "freebie" differs from the distribution of electronic devices or coupons. It is a service provision rather than a physical gift, and the justification is tied directly to the functional needs of the state. This distinction may explain why this specific benefit was acknowledged and defended publicly, while other distributions faced greater criticism.
Comparative Industry Practices
CyTA’s spokesman asserted that giving gifts to enhance relations is a practice followed by telecommunications companies worldwide. While the specific details of such programs in other countries are not detailed in the provided materials, the statement serves to contextualize CyTA's actions within a global commercial framework.
In the context of the Cyprus market, we see evidence of competitive matching. When MTN offered 60 free minutes for calls to the Philippines, CyTA responded with a 20 percent discount and additional free minutes through its soeasy package. This suggests that "freebies" are a lever used by competitors to respond to market events and rival promotions.
Summary of Offered Benefits
Based on the available documentation, the following types of freebies and promotional offers have been associated with CyTA:
- Electronic Devices: Distributed to political parties, former state officials, mayors, and football clubs.
- Coupons: Included in the distribution list mentioned by the Auditor-general.
- Discounted Call Rates: Specifically for calls to the Philippines following Typhoon Haiyan.
- Free Minutes: Available through the "soeasy Freebies" package for international calls and top-ups.
- Free Cytavision Service: Provided to the Presidential Palace for news access.
Conclusion
The available information regarding CyTA freebies paints a picture of a state-owned utility utilizing promotional benefits as a tool for both customer retention and crisis response. While the distribution of €60,000 worth of devices and coupons to public figures drew significant criticism from the Auditor-general as "reprehensible," CyTA defended the actions as standard industry practice intended to enhance business relationships. Conversely, the provision of discounted rates to the Filipino community during a natural disaster and free news services to the Presidential Palace were presented as fulfilling specific needs or public service obligations. The tension between these commercial and public roles remains a central theme in the discourse surrounding CyTA's promotional activities.