Increase in local communication services usage across the board

A little more than a quarter of the Maltese population has fast internet access, active fixed-line telephony subscriptions are up and usage is good despite the use of free online communication services such as Skype, there is one active mobile telephony line for every Maltese citizen but users are calling more rather than sending more SMS, 40 per cent of complaints concern mobile usage, and almost a third of Maltese households still watch analogue TV.

This is the picture that emerges from the communications market review compiled by the Malta Communication Authority for the first six months of 2009. The bi-annual report is an important snapshot of the Maltese communications sector and accounts for the rise of the Maltese information society.

Active fixed line telephone subscriptions reached 245,069 as at the end of Q2 2009, up by approximately 3.2 per cent over the corresponding 2008 figure. Fixed line traffic volumes also registered growth of around 13 per cent. Such increases were reported irrespective of the continued declines in minutes generated by dial-up internet access and notwithstanding the competition from unmanaged IP-telephony internet services such as Skype.

The report attributes the continued growth in the fixed line subscriber base to a number of developments in the sector such as, for example, a higher take-up of multiple subscriptions in view of cheaper on-net call tariffs, the bundling offers from the two major players and number portability, whereby users change provider but keep the same number.

In terms of market share, Melita gained both in subscriptions and traffic volumes at the expense of new entrants, while Go, still the largest operator, registered declines in its market share both in terms of subscriptions and traffic levels.

Active mobile subscriptions reached 404,461 at the end of Q2 2009, an increase of approximately eight per cent over the corresponding figure for 2008. Postpaid subscriptions amounted to 17.7 per cent of the total whereas prepaid subscriptions amounted to 82.3 per cent. This means 97.8 per cent of the Maltese have a mobile line.

In terms of market share, almost half of all subscriptions are with Vodafone, which however is no longer the absolute majority player. Indeed Melita Mobile, which launched in February, gained 4.8 per cent market share in five months. The new operator brought new market offers and driving up the number of new subscriptions according to the MCA.

However, the most striking trend is the number of users who changed provider while keeping the same mobile number. During the first six months of 2009, more than 36,000 mobile inward portings have been executed, three times as much the amount executed in the first six months of 2008.

In terms of traffic volumes, outgoing voice call minutes registered in the first half of 2009 increased by 22 per cent over the corresponding period a year earlier. On the other hand, SMS traffic declined to 233.2 million messages from 251.7 million in the first half of 2008. The report attributes this fall to promotional offers featuring free minute voice call bundles.

Mobile roaming also increased, a result of lower tariffs.

The review of the local TV broadcasting scene reveals that around 11 per cent of local households received their television broadcasts via the analogue terrestrial platform, and a further seven percent utilise the satellite platform. As at the end of Q2 2009, analogue cable subscriptions amounted to 31 percent, digital cable subscriptions amounted to 40 per cent and digital terrestrial TV subscriptions amounted to 29 per cent of the total. This has to be seen in view of the switch-over to digital only TV transmissions on December 31 of next year.

Internet subscriptions amounted to 108,527 by the end of Q2 2009, including 107,229 broadband (fast access) subscriptions and 1,260 active dial-up (slow access) subscriptions. Broadband subscriptions increased by 14.8 percent over the corresponding figure in 2008, with the broadband penetration rate reaching 25.9 per cent.

In terms of market share, Melita accounted for 50.5 per cent of all broadband subscriptions, GO accounted for 42.6 per cent, Vodafone three percent, and the remaining 3.9 per cent were accounted for by subscribers to third party ISPs, SKYNet, and Vanilla Telecoms. Cable internet remains the most popular broadband technology, followed by ADSL. WiMax, the broadband wireless technology, remained in the shadow of the other two fixed-line technologies.

The review also accounts for consumer affairs which are also handled by the MCA. During the first six months of 2009, the authority received 169 complaints on electronic communications, with the mobile sector accounting for approximately 40 per cent of the total. Complaints received highlighted on issues mainly related to quality of service, billing, portability, and contractual agreements. Of all complaints reported to the MCA during this period, nearly 88 per cent were resolved, and approximately 12 per cent referred to other entities.

www.mca.org.mt