2/10/15

Speech by the Minister of Transport, Mr Marios Demetriades, at the Conference “Challenges for Cyprus: Digital Single Market and ICT Innovation”

Speech by the Minister of Transport, Mr Marios Demetriades,
at the Conference “Challenges for Cyprus:
Digital Single Market and ICT Innovation”


Your Excellency, the President of the Republic,
Your Excellency, Secretary General, International Telecommunication Union,
Dear Principal Adviser, DG CONNECT, European Commission ,
Distinguished Guests,
Ladies and Gentlemen,

It gives me great pleasure to address this conference and I would like to thank you all for your participation. Special thanks to his Excellency Mr Houlin Zhao, Secretary General of the International Telecommunication Union and Ms Megan Richards, Principal Adviser in DG CONNECT, European Commission. I would also like to extend my thanks to the organizers and the speakers of the Conference.

Cyprus is very proud to participate in the celebrations of ITU’s 150 years. Our country has a long history in the telecommunications sector as in 1871, the first submarine telegraph cable was laid between Cyprus and Syria, from Ayios Theodoros to Lattakia.

Throughout the years ITU has acted as a catalyst to the increase of productivity and economic growth.   It has a direct impact on the increase of GDP, the creation of new high-value jobs, the modernization of the public sector, the increase of transparency and the promotion of democracy and culture.  

Broadband accessibility should not be a privilege but a right to every citizen. Concrete steps should be taken to overcome the digital divide by meeting the target of 100% coverage, taking into account the needs of the future for ultra high speed communications.   The provision of safe and uninterrupted flow of information and operation of networks, as well as the reduction of the prices of Internet access are necessary, to enable everyone to use ICTs technologies. Furthermore, governments need to increase the use of ICT, both for their internal functioning and for the provision of services to the citizens and businesses.   In that way, they will become more efficient, productive and competitive.

Cyprus is fully committed towards the development of digital economy. According to the Digital Economy and Society Index (DESI), published in February 2015 by the European Commission, Cyprus’ progress is 3%, the same as the average of the European Union.   However, we believe there is much space for improvement.

 That is why we are increasing our efforts for the more effective implementation of the Digital Strategy of Cyprus.   A high level team, from the private and the public sector, has been created which will be responsible for the continuous enrichment of Cyprus’ Digital Strategy with new ideas and projects.

Measures and actions of the National Digital Strategy have been prioritized in the National Action Plan 2015-2017. This Action Plan includes nineteen (19) projects of around 107 million euros, aiming to modernize the public administration and to provide additional public electronic services, to improve digital entrepreneurship, to develop e-health, to enhance digital literacy, to deploy the infrastructure for high-speed,   to computerize the local government, and to increase broadband penetration. The implementation of the National Action Plan will contribute to the reactivation and restructuring of our economy.

In addition to the national Digital Strategy, the Council of Ministers has recently approved the Smart Specialisation Strategy for Cyprus, which indicates that the effective development and deployment of key enabling technologies, like ICTs and space technologies, are an important factor in achieving industrial and economic growth and in fulfilling the local societal challenges.

Ladies and Gentlemen,

We welcome the European Commission’s Initiative on the Digital Single Market. We believe that, combining our efforts, we can make a difference and set the way for obtaining the full benefits of a digital future, for all European Citizens.

The 16 key Actions announced by the Commission are very important and play a great role in the successful integration of the digital economy in the single market. These initiatives are closely related, mutually reinforcing each other, and cover many important issues that affect the completion of the digital single market. In this context, we welcome the initiative of the European Committee to organize such visits to Member States to consult with the local stakeholders.

From our side, we would like to see more emphasis on removing obstacles to the free movement of goods and services sold on-line and addressing the unjustifiable discrimination based on the geographical location. Taking into account the distance of our country from continental Europe, improving the access and supply of goods and services at very competitive prices is imperative.   

More efficient and cheaper parcel delivery would also play a vital role, if we are to fully benefit from a truly single market. The goods purchased online should be moved without hindrance in all EU Member States and the shipping cost should be harmonized across Europe. This affects particularly the citizens of the outermost Member States. Equally important is the digitization of industries and the strengthening of Small Medium Enterprises (SMEs), which form an important part of our own economy. The Commission will need to channel more resources/funds for digitization of enterprises, especially SMEs, and to simplify the rules of access and eligibility criteria for the absorption of these funds.

Finally, one important aspect we will always have to take into account is that we need a digital single market with a uniform high speed. Therefore, we need to help bridge the digital divide within EU, in all related areas, and special support should be given to the smaller Member States, like Cyprus.

Distinguished quests, dear friends,

It has been demonstrated that the success and development of the ICT innovations and space technologies are not an exclusivity for “big” States.   Small States can, through a targeted strategy, cope successfully in this area as financial centres, as centres of growth technologies and as centres providing services.

The Cooperation Agreement signed between Cyprus and the European Space Agency (ESA) in August 2009, was the first step in the development of our space policy. We already expressed in February 2015 our willingness to start discussions with ESA, aiming at the signature of the European Cooperative State Agreement (ECS). Cyprus’ unique geographical position at the juncture of three continents, Europe, Asia and Africa, the advanced infrastructure and services, as well as the very attractive taxation and other advantages, enables it to become a regional power and node (hub) in the field of Satellite Communications and other services related to Space Technologies. Large satellite operators as well as organizations that provide satellite communications services as integrated solutions, are already established in Cyprus and there is an increased interest to invest in or to use existing infrastructure in Cyprus by other companies as well.  

Cyprus, being a small open economy with a high reliance on its service sector, should exploit digital technologies to create a modern knowledge-based economic growth model.

On this positive note I would like to conclude my speech.   I would like to thank you for your participation and wish you all a productive and fruitful meeting.


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