Telecoms watchdog says new phone company still on hold

The Malta Communications Authority said it was still awaiting technical information from a new telephony company which claims it can offer a fixed line service with rates as low as 1c per call.

The MCA said such technical information from Maltatel Ltd was necessary in order to carry out the necessary compliance tests and assessments. Until such matters are clarified and compliance ensured, Maltatel cannot be licensed as a public communications network, the regulator said.

But the Gozo-based company defended itself, saying it had the backing of US-based companies and would build the necessary system in weeks - provided the authorities play their part.

During a press conference last month, Maltatel claimed it could take 30 per cent of Maltacom's market share by the end of the year, as people were thirsty for competition.

The MCA's chief of operations, Joe Cuschieri, told The Times yesterday Maltatel has not been licensed as a public communications network, apart from the fact that no infrastructure is known to be in place that could qualify as such.

At a recent meeting it transpired that Maltatel was only in a position to provide so-called carrier selection services in the short term. The deployment of the network should take place later on this year.

"Maltatel is saying it wants to use an unlicensed frequency band to deploy its network and services. We feel this is unsustainable," Mr Cuschieri said.

Regarding the alleged interconnection hurdles faced by Maltatel in securing interconnection agreements with the other three mobile and fixed line companies, the MCA said it had asked Maltatel to specify exactly the type of interconnection required because the legislation clearly stipulates that interconnection has to take place between networks.

Mr Cuschieri said the process leading to the cost orientation of interconnection rates was relayed to Maltatel on a number of occasions.

"Our main objective is to ensure that new entrants to the market are serious and competent and that such new entrants can provide value for money to the general public."

When contacted, Maltatel general manager Mario Gatt admitted that the network was not in place but insisted that some of the equipment was already there and the company was rearing to go.

"We have contracts signed with big US companies, we have technical support from overseas, we have the backing of ICM, so, yes, we certainly have a plan ahead," Mr Gatt said.

Once the interconnection issue is resolved, Maltatel will be in a position to start operations "at once".

Mr Gatt said his bone of contention was not with the MCA but with companies like Maltacom which he believes need more time to readjust to competition.

He said that several subscribers have already expressed interest in joining Maltatel's service, including the majority of companies. "And as soon as we deploy the system, the response will triple," he added.

At first glance, Maltatel's rates as announced by Mr Gatt seem unbeatable. While a five-minute call during peak hours will cost 1c, a 30-minute call at night would also cost 1c. Moreover, Maltatel's fixed line to mobile phones rates will be 7c per minute in the case of Go Mobile and 6c per minute in the case of Vodafone, against Maltacom's 12c4 per minute. Mr Gatt envisaged that the network investment would cost some Lm17 million.