A communication centre in your pocket

Almost a year since 3G mobile communication was launched locally by Vodafone Malta, the mobile market in Malta has been in continuous flux.I -Tech caught up with Mikhail Gerchuk, chief commercial officer at Vodafone Malta, who shared his views on the...

Almost a year since 3G mobile communication was launched locally by Vodafone Malta, the mobile market in Malta has been in continuous flux.

I -Tech caught up with Mikhail Gerchuk, chief commercial officer at Vodafone Malta, who shared his views on the developments of wireless communication in Malta.

Mr Gerchuk explained: "Voice usage in Malta is one of the lowest in Europe. On the other hand, SMS usage is one of the highest. Historically this is due to prices. However, in terms of number of minutes last year our customers has increased by 25 per cent.

"MMS is growing. Prices are coming down and there are more occasions to use MMS than video calling. We expect MMS to continue to grow. Handsets with a camera have become cheaper. Our customers are getting used to sending MMS to share many special or funny moments."

About video telephony, hyped as the next big thing with the launch of 3G, he is more cautious.

"We will see if video telephony will catch-up. Voice is the natural way to communicate in a wide range of situations. Video telephony has more specific occasions."

The 3G and its new upgrade known as 3.5G or HSDPA, are still a relative novelty.

The response to High-Speed Downlink Packet Access (HSDPA), which provides internet access speeds on mobile handsets similar to fixed-line broadband access such as ADSL and cable modem, is described as positive.

HSDPA is used predominantly for data, especially e-mail and downloads and the company says six per cent of its subscriber base has made use of it.

"This level of uptake is in line with other countries," reassures the operator's chief commercial officer. "It is worth mentioning that Vodafone Malta achieved the highest speed of 3G penetration across all Vodafone countries so far. In other words, in other countries it took longer to achieve the level of 3G penetration that we have in Malta," boasts Mr Gerchuk.

At the moment Vodafone Malta covers 36 per cent of Malta's territory with 3G and HSDPA and it is envisaged that 70 per cent of Malta and Gozo will be covered by the end of 2007. There is a reason why 100 per cent coverage was not possible immediately.

"The main challenges are uneven terrain and thick limestone walls of Maltese houses that are hard to penetrate. Vodafone's objective is to achieve indoor coverage coupled with good quality of service in the areas covered by 3G.

Vodafone Malta is facing the same music with the new WiMax broadband internet access, which make use of a wireless modem that needs no fixed-line means of communication. A few weeks ago Vodafone Malta launched broadband wireless access based on 4G or WiMax technology, offering wireless broadband internet access to computers at home and at the office, together with fixed-line VoIP telephony option accessible through the same technology.

This was a first not just for Malta but also for a member of the Vodafone Group.

HSDPA, with a speed of 3.2MB/sec and WiMax, soon reaching speeds of 2 MB/sec, may seem competing wireless technologies but there are distinct and important differences.

"HSDPA devices are fully mobile, while WiMax will offer a 'nomadic' solution for broadband and fixed (VoIP) telephony at home," explained Mr Gerchuk, who by the term "nomadic" meant it is possible to change its positioning in a building but cannot be used effectively while on the move such an HSDPA-enabled mobile handset in a moving car.

The difference between the two technologies goes further.

"It depends on the country. We have both and they address different needs in Malta. WiMax also offers VoIP, ideal for home users. Business users like the HSDPA."

WiMax coverage is initially available in Bugibba/Qawra, Naxxar, Mosta, Attard, Balzan, Iklin, Lija, B'Kara, Fleur-de-lys, Hamrun, Kappara, San Gwann, Qormi, St Venera, Zebbug, Rabat and Mtarfa. By March 2008, Vodafone Malta will have nationwide coverage.

One service missing on Vodafone's plate is TV on mobile phones. Asked about the company's views on this issue, Mr Gerchuk simply replied, "the reputation of Vodafone is in communication and not TV. TV on mobile handsets is on the radar but we do not have imminent launch plans".

With voice, internet access over HSDPA, internet access over WiMax, and fixed-line telephony through VoIP on WiMax, Vodafone Malta has become a 'multi-play' company offering different communication services packaged together.

"We want to leverage the technological advantage and continue to be on the forefront of technology. We believe we are the world experts in wireless communication," concluded Mr Gerchuk.

In the meantime, Vodafone Malta announced that it will be introducing the new roaming euro tariffs for all its customers with effect from August 30 with the launch of the new Vodafone World roaming tariff plan applicable for calls made and received within the EU countries. Customers will be charged 25c/min including VAT (€0.58) for all outgoing calls within the EU countries to the visited country, to Malta and other EU countries, while incoming calls will be charged at 12c/min including VAT (€0.28) for calls received while roaming in the EU 27 member states.

The Euro Tariff is the result of an initiative by the European Commission to bring down considerably the tariffs for mobile users carrying with them their mobile phone while travelling across the EU.

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