Cyprus has once again found itself at the mercy of decisions taken by a private company over the operation of its digital television network, with critics arguing that shortcomings in two separate government tenders have left the state exposed and consumers facing significant disruption.
According to the report, both the 2010 transition from analogue to digital television and the 2024 tender for the new digital broadcasting network were marred by inadequate planning and a lack of key technical requirements. As a result, private operators were able to determine how the network would function based on their own commercial strategies, leaving the government with limited leverage.
Tender lacked technical requirements
The 77-page tender document issued in September 2024 reportedly contained no mandatory technical specifications governing how Hellas Sat should operate the network. Instead, it allowed the provider to determine the technical parameters according to its own coverage and capacity requirements.
Hellas Sat consequently opted to use the DVB-T2 standard with 256 QAM modulation, a configuration that maximises network capacity but requires stronger and cleaner reception conditions. While commercially advantageous, the decision led to reception problems for many viewers whose television equipment or home installations were unable to receive the new signal reliably.
Warnings went unheeded
The report notes that technical experts had warned the government of potential disruption before the tender was finalised.
During consultations with broadcasters and regulators, the Cyprus Broadcasting Corporation (CyBC/ΡΙΚ) reportedly stated that while it was not opposed to DVB-T2 technology, it preferred DVB-T because of concerns that the transition would cause significant disruption, particularly for older viewers.
Despite those warnings, no binding technical requirements were incorporated into the tender.
Temporary compromise reached
Following weeks of negotiations with the Deputy Ministry of Research, Innovation and Digital Policy, Hellas Sat has agreed to reduce its modulation from 256 QAM to 64 QAM from Monday midnight.
The move is intended to improve reception during a three-month transition period, allowing more households to retune their televisions. However, it remains unclear whether all reception problems will be resolved or whether viewers who have already completed the retuning process could face further disruptions.
The company has also assumed the cost of maintaining parallel broadcasts through the previous Velister network during the transition.
Experts point to planning failures
Telecommunications expert Costas Argyroudis, who represented LRG during the original 2010 digital television tender, argued that the choice of 256 QAM was overly ambitious given the condition of many household antenna systems in Cyprus.
While acknowledging that the technology provides greater bandwidth, allowing more television channels and even 4K broadcasts, he said it is considerably more sensitive to signal imperfections and requires much higher-quality reception infrastructure.
According to Argyroudis, the responsibility lies primarily with the government, which failed to establish clear technical standards requiring the use of 64 QAM from the outset.
He also criticised the authorities for underestimating the condition of existing household installations, failing to prepare the market adequately for the transition, and adhering to what he described as an unrealistic implementation timetable despite mounting technical problems.
Government accused of reacting rather than planning
The issue was discussed in Parliament's Transport Committee, where Deputy Minister of Innovation Nikodemos Damianou attributed responsibility to both Velister, for operating outdated infrastructure, and Hellas Sat, for implementing what he described as an excessively ambitious technical upgrade.
Critics argue, however, that the government itself failed to develop a comprehensive transition plan, instead responding to problems as they emerged.
Officials believe that lowering the modulation to 64 QAM will largely resolve the reception issues. While higher-order QAM allows greater data transmission and increased channel capacity, it also demands significantly stronger signal quality, making lower-order modulation a more robust option for households with older reception equipment.
