Below is an analysis of the major indicators which relate to Malta.
*Note: The majority of the indictors reported in the scoreboard are based on 2011 figures, however it is important to note that in some instances, statistics are based on 2010 figures.
Investment in telecommunications
The Commission reports that, the latest available data, as at 2010, indicates that Malta ranks third in the EU with respect to investments undertaken by the telecommunications sector. In fact, investment was boosted in 2009 by the network deployment of the new mobile operator and continued to increase in 2010 mostly due to significant investment in the upgrade of broadband networks. Such investments reached €46 million, that is, 20.7% of 2010 revenue.
Internet
In its report the Commission reports that Malta is “one of the top EU performers for fixed broadband penetration” noting that broadband penetration continued to grow, reaching 30.9% in December 2011, ahead of the EU average of 27.7%. With a growth of 1.4%, Malta is one of the four countries in the EU that presents both a penetration level and growth rate above the EU average.
The Commission noted that Malta was considered as having achieved the Digital Agenda for Europe target aiming at securing a basic broadband connection for all EU households by 2013. “This is not only due to the geography of the Islands or to the presence of two ubiquitous infrastructures; it is also linked to a strong public policy focus on ICT.” it stated.
The Commission also notes, in particular, the increasing popularity of bundled offers, with approximately 54% of all fixed broadband subscriptions forming part of a bundle.
The report states that as at December 2011, most Maltese consumers were subscribed to packages with download speeds of between 2 and 10 Mbps. As regards consumers having connection speeds above 10 Mbps, although the report captures a moderate increase to 24.6% as at December 2011, most broadband lines in Malta were in the range of 2Mbps and below 10Mbps (75.1%), well above (31.7%) the EU average rate of 43.4% of lines in this speed range. The Authority notes that various upgrades to broadband speeds have been introduced on the market since December 2011 so that, at the end of March 2012 broadband lines above 10 Mbps have increased significantly to 47.37% above the EU average as at December 2011 which stood at 48.4%. Subscriptions in the range of 2Mbps and below 10Mbps have at the same time decreased to 52.30%.
Mobile broadband penetration is 21.2%, up by 8.9 % year-on-year but it is still significantly below the EU average penetration level of 43.1%.
With regards to Next Generation Broadband Networks the Commission notes positive developments in particular with the upgrading of the cable network which allows customers to reach up to 100 Mbps in download speed. This ranks Malta in the third place in the share of high speed broadband lines as a percentage of total broadband lines (46% compared to the EU average of 12%). Despite this progress, however, the take-up of high-speed (30 Mbps) and very high-speed broadband (100 Mbps) offers remains marginal.
The Commission positively notes that “Malta is one of the few Member States that has adopted measures to include access to a broadband connection in the national universal service.” Since 1 August 2011, these measures have ensured that all subscribers, irrespective of the area where they live, are able to have a connection with a speed of 4 Mbps.
With regard to the provision of broadband via Next Generation Networks, the report states that significant steps have been taken by the Malta, whilst noting that following its feasibility study carried out in 2011, the Maltese Government unveiled its decision to actively promote the deployment of a nationwide open-access Fibre-to-the-Home (FTTH) network.
Telephony
In the mobile telephony sector, the number of subscriptions per inhabitant is reported at 118%. The Commission noted that “competition between the three main players has also intensified.” Nevertheless the market entry of the third operator did not have an immediate impact on the level of prices: in 2010, Maltese customers were charged he highest mobile tariffs in the EU, with an average revenue per minute of €0.21 compared to the EU average of €0.11. Since that time, however, the latest calculations of the MCA show that the average revenue per minute at the end of 2011 has declined steadily to €0.122 (Including international calls) and €0.119 (Excluding international calls).
Broadcasting
On the broadcasting front, the Commission took note of the new free-to-air digital terrestrial platform which is now fully operational and carries six Maltese broadcasters meeting general interest objectives. Digital switch-over was completed on 31 October 2011 with the switching off of the analogue broadcasts.
The Commission noted that “the digital pay-TV scene remains characterised by intense competition between the two commercial players, Melita plc and GO plc, which have launched new products on the market (IPTV and Video on Demand).”
Spectrum Management
The scoreboard also makes reference to the MCA’s successful conclusion of the reassignment of spectrum in the 900 MHz and 1800 MHz bands. This was the first time that the MCA reassigned spectrum that was already in use for the provision of mobile communication services. Spectrum licences were subsequently awarded to Melita Mobile Ltd, Mobisle Communications Ltd and Vodafone Malta Ltd respectively. The report also duly notes the satisfaction of the mobile operators with regard to the efficient and balanced approach adopted by the Authority in the assignment process.
Transposition of New Telecoms Framework.
The timely transposition of the reviewed EU Electronic Communications Directives into Maltese law is also highlighted. This process, which was completed in July 2011, introduced amendments to the Malta Communications Authority (MCA) Act, the Electronic Communications (Regulation) Act and various subsidiary regulations enacted under this Act.
Appeals to MCA Decisions
The Commission noted that most appeals against decisions of the MCA are still pending before the Communications Appeals Board. In this regard, since 1st June 2012, government decided that appeals will no longer be heard by the Communications Appeals Board, but by the Administrative Review Tribunal.
Co-deployment and Facility sharing
With regards to Co-deployment and Facility sharing the Commission reports a lack of clear boundaries between the powers of the Malta Communications Authority and Transport Malta. Government is providing a framework for rationalizing these procedures as part of the Fibre-to-the-Home project.
Card Sharing
The Commission noted the market players’ concern regarding the use of satellite card-sharing and its consequences on the value of content rights. The Authority recognises these legitimate concerns, and notes that a number of court cases have been instituted in this regard.
Commenting on this report, Ing Micallef, Chairman Malta Communications Authority said “Malta continues to experience important year-on-year growth in all the key electronic communications sectors. This is particularly satisfying given the current difficult economic situation. The Authority’s work is now focussing not only on sustaining and strengthening the level of competition attained in this sector, but also on ensuring constant improvement in quality of service and consumer protection.” “The MCA is also pleased to be assisting the Government on a project aimed at facilitating the deployment of an FTTH network. This will assist in the provision of ultra fast broadband, which in turn will support a host of innovative, high-quality services,” he continued.
