Regulator designates three firms having dominant position

The Malta Communications Authority said yesterday it had designated three operators with a dominant market position (DMP) in telecommunications.

It has designated Maltacom as having a DMP in public fixed telephony, Vodafone (Malta) Ltd in mobile telephony and Melita Cable in cable television and radio services.

Authority chairman Joseph V. Tabone said: "The determination of organisations which have a DMP is a criticial step towards the preparation of the market for full liberalisation, which is scheduled to take place at the end of this year."

The authority explained that the designation of an operator as having a dominant position triggered a number of regulatory obligations which included the requirement to ensure quality of service, the adoption of transparent cost accounting systems and interconnection rates, including tariff structures which were cost-orientated and non-discriminatory.

The authority said the long-term objective of designating operators with a DMP status was to ensure the sustainable development of competition by eliminating potential barriers to entry. This would, in turn, create more options for consumers and better value for money in their use of telecommunications services.

The authority said the main criterion established by law for the determination of a DMP was the 25 per cent rule. An operator with a share of more than 25 per cent in the relevant telecommunications market was designated as having a dominant position.

The document "Dominant Market Positions in Telecommunications - Responses to Consultation and Designations - May 2002" may be viewed on the MCA website www.mca.org.mt.