Money talks in Maltese communication services
The Maltese are keen communicators and ready to take the best offers, meaning less SMSs and more talk, maybe more in line with our boisterous and talkative Mediterranean nature. Two new small mobile operators also left their mark, eating away from the...
The Maltese are keen communicators and ready to take the best offers, meaning less SMSs and more talk, maybe more in line with our boisterous and talkative Mediterranean nature.
Two new small mobile operators also left their mark, eating away from the market share of the two established operators.
I-Tech has come to this conclusion after going through the communications market review for the period July- December 2008 just published by the Malta Communications Authority.
The biannual market review provides up-to-date quarterly data on key areas of the Maltese electronic communications industry, the postal sector, and e-commerce.
The report clearly shows the unrelenting drive of the market towards faster broadband internet access, digital television, and wider use of the communication technologies, made available by the local players through well-thought offers.
A quick look reveals how, contrary to recent trends, there was an increase in the number of subscriptions and the use of fixed-line telephony.
This was due to more attractive offers for this type of service.
The issue of offerings, especially those that have a significant financial value, was also evident in terms of mobile use, with the number of SMSs going down and voice communication going up, once again as a result of better mobile voice rates.
The launch of two mobile virtual network operators, Redtouch fone and Bay Mobile last year, accounted for a higher rate of porting, i.e. people switching provider while retaining the same mobile number.
The local mobile penetration rate as at the end of 2008 stood at approximately 94 per cent of the local population, up by four points from the previous time of the year.
The positive effect of the reduced mobile roaming rates also continued to be felt throughout the period.
The drive towards the digital TV experience continued at a strong pace after the number of the digital TV subscribers had overtaken the number of analogue subscribers in Malta for the first time in early 2008.
Subscribers to internet services reached 102,908 by the end of 2008, an increase of approximately 23 per cent over the corresponding period in 2007. All three broadband technologies, namely ADSL, cable and WiMax, experienced growth at the expense of the much slower dial-up service which is disappearing.
Consecutive surveys commissioned by the Malta Communications Authority in 2008 and quoted in this report suggest that e-commerce activity is on the rise as local internet users are shopping online more frequently.
This could also be reflected in the fact that the total number of mail handled by Maltapost decreased, but the number of bulk items and parcels actually increased, as more people shop online from abroad.
When one looks deeper and closer at the figures provided, interesting features emerge.
As at the end of December 2008, the number of subscriptions with fixed operators reached 239,252 thereby exceeding the corresponding 2007 figure by 4.81 percent.
This is attributed to a considerable number of consumers choosing to subscribe to more than one fixed line telephony service, possibly in order to benefit from cheap call tariffs on the same network.
It is also worth noting that increases in fixed line originating traffic were reported despite the declines registered in minutes generated by dial-up internet access and notwithstanding the competition from unmanaged IP-telephony services such as Skype.
Mobile subscriptions reached 385,636 by the end of December 2008, an increase of 14,106 subscribers, or 3.8 per cent, over the end of 2007.
Contrary to developments in mobile voice call traffic, SMS traffic declined from 264.21 million text messages in the second half of 2007 to 241.53 million text messages in the second half of 2008 305 SMS per subscriber were sent between July and December 2008, still a very high figure compared to European standards but nevertheless down from 357 the previous year.
The fall in SMS traffic is attributed to a number of promotional offers featuring free minute bundles enticing users to make on-net mobile calls.
Digital TV connections increased from 56,372 at the end of 2007 to 80,219 as at the end of last year. On the other hand, analogue TV connections declined by more than 25 percent, from 63,180 at the end of 2007 to 47,126 at the end of 2008.
The MCA said this shift was expected given the efforts of the two network operators to push the take-up of digital television by offering increased channels, free set-top boxes, and other price reductions. Malta is set to switch off its digital TV signals at the end of 2010.
At the end of last year a total of 100,915 broadband connections were registered with local service providers.
Of these, 51.51 per cent were cable connections, and 45.63 percent were ADSL connections.
The remaining 2.86 percent of broadband connections were accounted for by WiMax. Melita retained the majority of market share it had wrestled from Go, which offers ADSL, at the beginning of 2007.
Market share of the small internet service providers that offer ADSL access, continued to decline and Go's takeover of small ISP NextWeb's subscribers last February will show in the next market review.
However, it has to be seen whether this will help Go to regain the lead over Melita in terms of broadband subscriptions.
Around 63 per cent of those who have shopped online have made from one to five online purchases in the six months prior to September 2008. Some 22 per cent made from six to ten online purchases, with the remaining 15 per cent purchasing more than 10 times online.
Online purchases are more common in relation to IT related goods and other electronic items. The market review clearly shows where the communications players stand. Melita scored points against Go in terms of fixed line and internet subscriptions while Go had a slight increase in terms of digital TV subscriptions at Melita's expense.
The effect of Melita Mobile, launched on February 1, will be seen in next review.
Vodafone held its position as the largest mobile operator but it made insignificant inroads in fixed-line telephony and the increase in WiMax wireless broadband internet is at a slower rate when compared to new ADSL and cable internet subscriptions.
The next market review is also expect to reveal whether the two mobile virtual network operators have continued to grow or have suffered from the entrance of Melita in the mobile market and what impact will MTVMobile, powered by Go, will have on the young mobile user market.
Two new small mobile operators also left their mark, eating away from the market share of the two established operators.
I-Tech has come to this conclusion after going through the communications market review for the period July- December 2008 just published by the Malta Communications Authority.
The biannual market review provides up-to-date quarterly data on key areas of the Maltese electronic communications industry, the postal sector, and e-commerce.
The report clearly shows the unrelenting drive of the market towards faster broadband internet access, digital television, and wider use of the communication technologies, made available by the local players through well-thought offers.
A quick look reveals how, contrary to recent trends, there was an increase in the number of subscriptions and the use of fixed-line telephony.
This was due to more attractive offers for this type of service.
The issue of offerings, especially those that have a significant financial value, was also evident in terms of mobile use, with the number of SMSs going down and voice communication going up, once again as a result of better mobile voice rates.
The launch of two mobile virtual network operators, Redtouch fone and Bay Mobile last year, accounted for a higher rate of porting, i.e. people switching provider while retaining the same mobile number.
The local mobile penetration rate as at the end of 2008 stood at approximately 94 per cent of the local population, up by four points from the previous time of the year.
The positive effect of the reduced mobile roaming rates also continued to be felt throughout the period.
The drive towards the digital TV experience continued at a strong pace after the number of the digital TV subscribers had overtaken the number of analogue subscribers in Malta for the first time in early 2008.
Subscribers to internet services reached 102,908 by the end of 2008, an increase of approximately 23 per cent over the corresponding period in 2007. All three broadband technologies, namely ADSL, cable and WiMax, experienced growth at the expense of the much slower dial-up service which is disappearing.
Consecutive surveys commissioned by the Malta Communications Authority in 2008 and quoted in this report suggest that e-commerce activity is on the rise as local internet users are shopping online more frequently.
This could also be reflected in the fact that the total number of mail handled by Maltapost decreased, but the number of bulk items and parcels actually increased, as more people shop online from abroad.
When one looks deeper and closer at the figures provided, interesting features emerge.
As at the end of December 2008, the number of subscriptions with fixed operators reached 239,252 thereby exceeding the corresponding 2007 figure by 4.81 percent.
This is attributed to a considerable number of consumers choosing to subscribe to more than one fixed line telephony service, possibly in order to benefit from cheap call tariffs on the same network.
It is also worth noting that increases in fixed line originating traffic were reported despite the declines registered in minutes generated by dial-up internet access and notwithstanding the competition from unmanaged IP-telephony services such as Skype.
Mobile subscriptions reached 385,636 by the end of December 2008, an increase of 14,106 subscribers, or 3.8 per cent, over the end of 2007.
Contrary to developments in mobile voice call traffic, SMS traffic declined from 264.21 million text messages in the second half of 2007 to 241.53 million text messages in the second half of 2008 305 SMS per subscriber were sent between July and December 2008, still a very high figure compared to European standards but nevertheless down from 357 the previous year.
The fall in SMS traffic is attributed to a number of promotional offers featuring free minute bundles enticing users to make on-net mobile calls.
Digital TV connections increased from 56,372 at the end of 2007 to 80,219 as at the end of last year. On the other hand, analogue TV connections declined by more than 25 percent, from 63,180 at the end of 2007 to 47,126 at the end of 2008.
The MCA said this shift was expected given the efforts of the two network operators to push the take-up of digital television by offering increased channels, free set-top boxes, and other price reductions. Malta is set to switch off its digital TV signals at the end of 2010.
At the end of last year a total of 100,915 broadband connections were registered with local service providers.
Of these, 51.51 per cent were cable connections, and 45.63 percent were ADSL connections.
The remaining 2.86 percent of broadband connections were accounted for by WiMax. Melita retained the majority of market share it had wrestled from Go, which offers ADSL, at the beginning of 2007.
Market share of the small internet service providers that offer ADSL access, continued to decline and Go's takeover of small ISP NextWeb's subscribers last February will show in the next market review.
However, it has to be seen whether this will help Go to regain the lead over Melita in terms of broadband subscriptions.
Around 63 per cent of those who have shopped online have made from one to five online purchases in the six months prior to September 2008. Some 22 per cent made from six to ten online purchases, with the remaining 15 per cent purchasing more than 10 times online.
Online purchases are more common in relation to IT related goods and other electronic items. The market review clearly shows where the communications players stand. Melita scored points against Go in terms of fixed line and internet subscriptions while Go had a slight increase in terms of digital TV subscriptions at Melita's expense.
The effect of Melita Mobile, launched on February 1, will be seen in next review.
Vodafone held its position as the largest mobile operator but it made insignificant inroads in fixed-line telephony and the increase in WiMax wireless broadband internet is at a slower rate when compared to new ADSL and cable internet subscriptions.
The next market review is also expect to reveal whether the two mobile virtual network operators have continued to grow or have suffered from the entrance of Melita in the mobile market and what impact will MTVMobile, powered by Go, will have on the young mobile user market.