Telecommunication company Primetel finds itself in troubled waters as it was placed under administration on Tuesday, July 18, following a failure to fulfil obligations linked to a loan acquired from the British investment fund, Signal Capital Partners.
The unfolding situation has caught the attention of the Office of the Commissioner for the Electronic Communications and Postal Regulation, which is currently conducting an in-depth investigation into the matter. With concerns over the potential ramifications of Primetel’s administration, the regulatory body is expected to issue a statement in the coming days.
Attempts to reach a company representative by Phileleftheros have so far been fruitless, however, sources have hinted that an official announcement may be forthcoming.
While the administration status has sparked fears of a possible shutdown, sources said that this does not necessarily signal the end for Primetel. If the company manages to secure the required financial resources, it may well continue its operations.
Primetel holds exclusive television broadcasting rights for the football clubs Omonia and AEK until 2024. Furthermore, the company is the third largest licensed mobile operator in Cyprus.
During the fourth quarter of 2022, Primetel held a significant market share in fixed-line telephony (10.7%) and fixed broadband access (9%).
Industry insiders have speculated about the possibility of Primetel being acquired by another telecommunications provider. However, any such acquisition would be subject to the approval of the Commission for the Protection of Competition.
