Maltacom - Malta's only quadruple play telco

Following last week's announcement that Maltacom had acquired Multiplus Ltd, Maltacom Group chairman Sonny Portelli spoke to The Sunday Times on what this means and where it will take the group

Maltacom Group's goal is to continue to be the leader in the local telecoms sector, according to chairman Sonny Portelli. "The acquisition of Multiplus is an important milestone for the group," he said on Thursday.

"It is clear that from a strategic point of view we had to enter the TV market to be in a position to offer our customers a total telecoms solution comprising fixed line, mobile, broadband Internet and television.

"Now more than ever, we are working to offer attractive bundles of services to our customers depending on their needs."

Mr Portelli said Maltacom sees "a lot of synergies occurring as a result of the Multiplus takeover. The TV operations will be benefiting from our technical, IT, customer care, content and operational resources, with the result that the level of service will continue to improve."

He recalled that the group had conducted a number of trials in the past, especially on IP TV. "Clearly there were reasons why this type of service was never commercially launched - mainly this was the result of the technology itself, which was not robust and mature for such TV applications.

"With the advent of DTTV (digital terrestrial television), Maltacom realised that in the short term this technology could be better suited for such a service. Hence, that was the reason why we had applied and got a DTTV licence.

"Having said that, we were keeping all options open, including that of having our own DTTV setup. However, from a strategic point of view, we opted for buying Multiplus so as to have a more rapid entry into the TV market."

Maltacom is keeping all its options open, even as far as IP TV - television over the Internet. This, he said could be used in conjunction with DTTV as part of a hybrid solution, giving users extra functionality.

Like any other business Maltacom are in, profitability is a key element, Mr Portelli said. "Hence, we will ensure that our TV operations are sustainable and profitable within a relatively short period of time.

"The measures of success will be those like of any well-run organisation. The success of Multiplus will be measured by how much it manages to increase its market share, add more content, come up with attractive packages, as well as increase its coverage.

"We will measure the success of Multiplus also in view of combined packages that we intend offering, which will include TV as well, and how this will increase customer retention."

One of the first steps Maltacom is taking in the coming weeks is to look at Multiplus's content and how this can be enhanced in terms of improving channel line-up and having also customised and targeted programming. Likewise, he added, the service delivery will be of paramount importance as we will be ensuring the best possible coverage in the islands.

While Mr Portelli did not give details on what the purchase of Multiplus involved, he said Maltacom would be investing to ensure that its customers will enjoy the best level of service possible from its new DTTV service.

Maltacom will consider a number of options, both in terms of locating both the TV operations' equipment as well as the human resources, in the coming weeks.

With Maltacom now taking on market leader Melita, Mr Portelli said the group sees room for growth in Malta's digital TV business. "Our intention is to increase our market share, by attracting new digital TV customers, as well as retaining existing ones.

"We are convinced that the local market yearns for a TV service that is affordable and of good quality. Our recent joint free set-top box promotion with Multiplus has confirmed that there is a strong demand for such better value digital TV service."