Nice picture for digital TV in Malta
The demand for digital TV services is strong in Malta and the acquisition of digital terrestrial TV (DTTV) operator Multiplus by Maltacom is set to broaden this market, in view of Malta's switch-off of analogue TV in 2010.This is the picture that...
The demand for digital TV services is strong in Malta and the acquisition of digital terrestrial TV (DTTV) operator Multiplus by Maltacom is set to broaden this market, in view of Malta's switch-off of analogue TV in 2010.
This is the picture that emerges after Maltacom's entry into the DTTV arena a few days ago. The announcement did not come as a surprise, given that Maltacom had been offering Multiplus's services as part of its bundled offers in the last few months.
"Up until the takeover, we had one cable operator and one operational DTTV network. Essentially the situation remains the same except for new ownership," the Malta Communications Authority (MCA) told i-Tech immediately after the announcement of the takeover.
Maltacom had already obtained a DTTV licence from the MCA in 2005. While Multiplus launched its commercial service in July of the same year, Maltacom waited for the conclusion of the privatisation process, which happened last year, and even asked for an extension of the deadline to roll-out its network according to its licence.
While announcing the takeover, Maltacom also surrendered its licence to the MCA. This is now up for grabs.
"Following successful re-coordination with Malta's neighbouring countries of the unassigned frequencies, in line with the outcome of the Radio Regional Conference held in July 2006, the MCA will issue a fresh call for expressions of interest in line with applicable government policy," an MCA spokesman explained.
Industry sources told i-Tech that the choice to surrender Maltacom's licence rather than one given to Multiplus may be linked to technical problems that Maltacom experienced on its assigned frequencies. This may also have led the former state-owned telecommunications company to view a takeover of Multiplus as a quick fix to technical problems rather than killing competition.
Interference from Italy on the TV frequencies assigned to Malta is an old-age problem that has not been solved yet.
"Every effort is being made with Italy to ensure that interference is minimised or hopefully eliminated and to achieve coordination on further frequencies," the MCA reassured.
Digital TV was launched for the first time in Malta by Melita Cable in February 2005. Then, a few months later, Multiplus launched its digital service on an alternative new platform, DTTV.
"Maltacom's entry into the market of TV distribution was imminent and no surprise to Melita Cable," Franco de Gabriele, marketing manager at Melita Cable told i-Tech. "The fact that Maltacom decided to buy-out Multiplus expedited their time to market. Other than that, we have been considering them as one entity for some time now, especially after they have come up with joint marketing initiatives over the past months."
These joint "marketing initiatives" consisted of bundled offers that packaged together different communications services such as broadband internet access, mobile telephony, fixed-line telephony and digital TV at attractive discounted prices.
As explained by Maltacom's chairman Sonny Portelli on the latest edition of The Sunday Times, the company is now the only communications company in Malta that can offer quadruple-play, i.e. the four services mentioned above.
Melita Cable did not stay behind and allied itself with Vodafone Malta to provide its bundled packages. Melita Cable can offer digital cable TV, broadband internet and fixed-line telephony all by itself.
Sources at Maltacom told i-Tech there will be a lot of synergies occurring as a result of the Multiplus take-over. The TV operations will be benefiting from Maltacom's technical, IT, customer care, content and operational resources with the result that the level of service should continue to improve.
This will put Maltacom and Multiplus in direct competition not just with digital TV services but in all four communication services.
In the meantime, the market for digital TV continues to grow. The latest figures by the National Statistics Office reveal that, out of 112,676 TV subscriptions in December 2006, 34,783 were digital subscriptions. The previous June there were 27,628 digital subscriptions. During the same period, the number of analogue subscriptions decreased by almost 4,000.
"Melita has achieved the best conversion from analogue to digital transmission among all the operators under the Liberty Global group of companies, of which Melita forms a part, that operate a TV service. The demand for digital has continued to be strong and we are very happy with the demand," said Mr de Gabriele.
Sources within Maltacom also shared an optimistic view with i-Tech.
"We see 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 existing ones. We are convinced that the local market yearns for a TV service which is affordable and of good quality."
Melita Cable is bracing for more heated competition.
"TV is ultimately about content, level of customer service and value for money," summed up Mr de Gabriele. "These are the three pillars that have enabled Melita to become a leader in TV distribution and the leading broadband provider in Malta. Melita will continue to consolidate its market leadership in the TV distribution market as it continues to invest heavily in these three pillars of business."
On December 31, 2010, analogue TV signals will be switched-off in Malta, two years before the deadline put forward by the European Commission. By that time the only way to enjoy local TV would be through digital cable, DTTV or internet streams if the local stations keep away of satellite TV. From 2011 the antennas that have marked the Maltese urban landscape for decades will need a digital set-top box to continue to be useful.
This is the picture that emerges after Maltacom's entry into the DTTV arena a few days ago. The announcement did not come as a surprise, given that Maltacom had been offering Multiplus's services as part of its bundled offers in the last few months.
"Up until the takeover, we had one cable operator and one operational DTTV network. Essentially the situation remains the same except for new ownership," the Malta Communications Authority (MCA) told i-Tech immediately after the announcement of the takeover.
Maltacom had already obtained a DTTV licence from the MCA in 2005. While Multiplus launched its commercial service in July of the same year, Maltacom waited for the conclusion of the privatisation process, which happened last year, and even asked for an extension of the deadline to roll-out its network according to its licence.
While announcing the takeover, Maltacom also surrendered its licence to the MCA. This is now up for grabs.
"Following successful re-coordination with Malta's neighbouring countries of the unassigned frequencies, in line with the outcome of the Radio Regional Conference held in July 2006, the MCA will issue a fresh call for expressions of interest in line with applicable government policy," an MCA spokesman explained.
Industry sources told i-Tech that the choice to surrender Maltacom's licence rather than one given to Multiplus may be linked to technical problems that Maltacom experienced on its assigned frequencies. This may also have led the former state-owned telecommunications company to view a takeover of Multiplus as a quick fix to technical problems rather than killing competition.
Interference from Italy on the TV frequencies assigned to Malta is an old-age problem that has not been solved yet.
"Every effort is being made with Italy to ensure that interference is minimised or hopefully eliminated and to achieve coordination on further frequencies," the MCA reassured.
Digital TV was launched for the first time in Malta by Melita Cable in February 2005. Then, a few months later, Multiplus launched its digital service on an alternative new platform, DTTV.
"Maltacom's entry into the market of TV distribution was imminent and no surprise to Melita Cable," Franco de Gabriele, marketing manager at Melita Cable told i-Tech. "The fact that Maltacom decided to buy-out Multiplus expedited their time to market. Other than that, we have been considering them as one entity for some time now, especially after they have come up with joint marketing initiatives over the past months."
These joint "marketing initiatives" consisted of bundled offers that packaged together different communications services such as broadband internet access, mobile telephony, fixed-line telephony and digital TV at attractive discounted prices.
As explained by Maltacom's chairman Sonny Portelli on the latest edition of The Sunday Times, the company is now the only communications company in Malta that can offer quadruple-play, i.e. the four services mentioned above.
Melita Cable did not stay behind and allied itself with Vodafone Malta to provide its bundled packages. Melita Cable can offer digital cable TV, broadband internet and fixed-line telephony all by itself.
Sources at Maltacom told i-Tech there will be a lot of synergies occurring as a result of the Multiplus take-over. The TV operations will be benefiting from Maltacom's technical, IT, customer care, content and operational resources with the result that the level of service should continue to improve.
This will put Maltacom and Multiplus in direct competition not just with digital TV services but in all four communication services.
In the meantime, the market for digital TV continues to grow. The latest figures by the National Statistics Office reveal that, out of 112,676 TV subscriptions in December 2006, 34,783 were digital subscriptions. The previous June there were 27,628 digital subscriptions. During the same period, the number of analogue subscriptions decreased by almost 4,000.
"Melita has achieved the best conversion from analogue to digital transmission among all the operators under the Liberty Global group of companies, of which Melita forms a part, that operate a TV service. The demand for digital has continued to be strong and we are very happy with the demand," said Mr de Gabriele.
Sources within Maltacom also shared an optimistic view with i-Tech.
"We see 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 existing ones. We are convinced that the local market yearns for a TV service which is affordable and of good quality."
Melita Cable is bracing for more heated competition.
"TV is ultimately about content, level of customer service and value for money," summed up Mr de Gabriele. "These are the three pillars that have enabled Melita to become a leader in TV distribution and the leading broadband provider in Malta. Melita will continue to consolidate its market leadership in the TV distribution market as it continues to invest heavily in these three pillars of business."
On December 31, 2010, analogue TV signals will be switched-off in Malta, two years before the deadline put forward by the European Commission. By that time the only way to enjoy local TV would be through digital cable, DTTV or internet streams if the local stations keep away of satellite TV. From 2011 the antennas that have marked the Maltese urban landscape for decades will need a digital set-top box to continue to be useful.