Communications watchdog finds post-liberalisation a tough nut to crack

The Malta Communications Authority used to think liberalising the market would be a difficult task, only to find out that post-liberalisation was a much arduous task.

This was admitted by the regulator's chairman, Joseph V. Tabone, while launching the MCA's annual report and financial statement for 2005.

"At the start up of the authority we thought the run up to liberalisation would be the toughest, however the past year has taught us that post-liberalisation is even more difficult to manage," Mr Tabone said. The MCA was primarily established to oversee the liberalisation process of the electronic communications and postal services. It also regulates the eCommerce sector and, more recently, the frequency spectrum.

Mr Tabone said one of the most resource intensive activities of 2005 and one in which considerable progress was achieved was the undertaking of a number of market reviews to determine where competition is lacking as well as those areas where competition is effective.

Another major milestone for the MCA last year was the assignment of frequency spectrum for the implementation of wireless technologies such as Third Generation mobile telephony (3G), Digital Terrestrial Television (DTTV) and Broadband Wireless Access (BWA).

"These developments represent investments of several million liri and, more importantly, additional broadband, mobile telephony and TV distribution services for consumers," Mr Tabone said.

In his view, the communications industry is one that is perpetually offering increased choice and value for money for end users with more entrants penetrating the market, tariffs being brought down and competition flourishing.

In the period under review, the MCA generated a total operating income of Lm9.1 million of which Lm7.9 million were transferred to the government.

After meeting all expenditure of Lm1.2 million, the authority closed off the period with a surplus, net of tax, of Lm109,390.

The annual report and the financial statements 2005 are available from the MCA offices in Pinto Wharf and can be downloaded from its website at www.mca.org.mt.