Mobile phone users sent almost 500 million text messages last year, a record, according to the Malta Communications Authority's annual report.

The 55.3 million increase in the number of messages over the previous year was in part attributed to the seven per cent rise in the number of subscribers, lifting the mobile telephony penetration rate to 92 per cent of the population.

Another factor was price difference between SMS and voice messages and the number of promotional offers, the MCA said.

The report, unveiled by MCA chairman Philip Micallef yesterday, gives a detailed picture of the market situation in various communications sectors and outlines the regulator's strategies.

The electronic communications sector employs over 2,400 people with a total sector turnover of €263.9 million, Mr Micallef explained.

The report notes that the average interconnection charges dropped by 32.7 per cent in January last year and mobile interconnection rates fell to €0.096.

Communications' Minister Austin Gatt highlighted the benefits that liberalisation and privatisation had on the country's economy and on the consumer.

He also noted that, in order to remain competitive, Malta needed to find a way of reducing international broadband prices because, although they had decreased, they were still high compared to other countries. This discouraged international operators from setting up office in Malta.

According to the report, internet subscriptions rose last year, reaching 24.7 per cent of the population or 99,947, of whom 52 per cent are cable and 48 per cent DSL users. With the presence of three nationwide broadband networks, the market saw increased speeds and download limits with prices remaining the same.

The dominant player in this sector is Melita Cable, with a market share of 51.2 per cent at the end of last year.

As for mobile phones, while there was an increase in the number of text messages there was a decline in the use of MMS to 124,725 units (a drop of 18.2 per cent) but an increase in roaming mobile minutes.

Following EU roaming regulations which led to a reduction in roaming charges, voice traffic originating from Maltese subscribers rose by 640,000 minutes (20.1 per cent) and traffic received while abroad increased by 428,000 minutes (25.2 per cent).

In this sector, changes in market share remained negligible with Vodafone standing at 52.7 and Go at 47.3 per cent.

Fixed-line telephony remained the most highly used form of communication despite the reduction in fixed-line originating minutes: 2007 saw a 9.5 per cent (19,886) increase in total subscriptions over 2006 while the overall originating minutes (terminating and fixed and mobile lines) dropped by 96.3 million minutes (14 per cent).

Go's market share fell by 12 per cent to reach 85.8 per cent while Melita Cable's share increased by 2.1 per cent to 13.1 per cent. Television subscriptions also went up by 12 per cent to a total of 119,552 subscribers. Cable analogue subscriptions declined by 15 per cent, reaching a 52.9 per cent market share, followed by digital that increased by five per cent, reaching 29.2 per cent of the market. Multiplus holds 9.8 per cent.

The use of e-commerce was also popular with more than half internet users having purchased something online at some point.

The postal services, which have 13 registered operators, also fared well in services offered and targets reached. However, there was room for improvement in this sector, the report notes as it outlined a strategy to liberalise the postal services.

The report can be viewed on www.mca.org.mt.

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