The Maltese mobile communication market cannot support three national networks. Apple's iPad is coming to Malta but we can't say when, and there have been discussions on the possibility of Vodafone Malta entering the TV market.

Iñaki Berroeta, the chief executive officer of Vodafone Malta, had much to say about the current trends in the local communications market. He was speaking to i-Tech after the operator announced a major upgrade to its network a couple of weeks ago.

Asked specifically about the number of national mobile network operators (MNO) and mobile virtual network operators (MVNO) that use the network of MNOs to provide their mobile services, Mr Berroeta confirmed that new MVNOs are on the way but expressed a word of caution on the sustainability of three MNOs in Malta.

"Malta is a mature market in terms of mobile usage. It can still develop a lot in terms of how this usage is being done but in terms of access I would say it is a very mature market. It is crowded, there is room for MVNOs that are targeting specific segments or niches in the market but I think it is very unlikely there is room for three networks [MNOs].

"This is a business that requires significant investment and to maintain this investment you need to have a number of customers that allow you to have the economics to make that investment. If you deploy a mobile network today and you keep it under a minimum investment in three years you will have an obsolete mobile network and your customers will turn away. That's the problem."

The CEO of Vodafone Malta was echoing similar views expressed a few years ago when the Malta Communications Authority (MCA) was in the process of issuing three licenses for 3G networks.

With over 100 per cent penetration, he sees clear trends in the development of the mobile market, where data is surging ahead in popularity at a steady pace.

"The trend we see in Malta is less SMS, much more data and more voice. We have seen a huge increase in the use of smartphones. Last year between Blackberries, iPhones and other similar devices we sold about 10,000 smartphones. Data is a huge growth for us. What we believe is part of the decline of SMS is because voice is becoming more affordable but also because a lot of people are using Facebook and such applications to send messages. The usage of messages is changing because of technology."

The iPad, the new tablet from Apple, is a new device designed for internet access and Vodafone Malta is willing to provide it locally just as it did with the iPhone. However Apple must make any commercial announcement first, Mr Berroeta insisted.

To cater for all this demand Vodafone Malta has invested in the upgrade of its network to provide speeds of up to 14.4 megabits per second. However, mobile operators around the world complain that they are facing very strong demands for data usage which are stretching their resources.

"Here in Malta we have seen a huge increase in usage but we have to say that our network today is well prepared to take care of this demand," reassured Mr Berroeta.

"This is why we decided to invest in the 14.4 megabits capacity and also we have made a significant investment in the backhauling all the connectivity behind our antennas to make sure we can carry all that traffic. For us it does not represent any threat to the network. The issue of capacity is because there is a huge demand for data services and this is clear by the amount of videos and other application from companies like Google which make all the revenues and do not contribute to the development of the access."

At the same time Vodafone Malta is taking the opportunity to invest in new equipment that consumes less energy and therefore reduces costs of electricity and is more eco-friendly.

Vodafone Malta provides two broadband wireless and mobile access services, 3G and WiMax. The latter has been struggling to get attention locally as 3G continued to flourish at its expense.

I-Tech asked Mr Berroeta whether the new 3G network speeds will be the final nail in WiMax's coffin.

"When we deployed WiMax we thought there was an opportunity to have a home broadband package and at that time WiMax was able to do that. Are we re-considering the situation in view of what is coming on the roadmap of 3G? The reality is yes."

Asked about whether Vodafone Malta is considering providing internet access through ADSL or even fibre optic cables, the company's CEO gave a cautious reply.

"Vodafone is offering a home internet pack with broadband. Whether we do it on ADSL or any other technology depends on how our investment goes and what kind of opportunities we see in the market. We are investing significantly in fibre but mostly on our backhauling and we do have some corporate customers where we provide fibre access. I have seen some articles from our competitors saying they are investing in fibre-to-the-home and all that. I want to see it. It is a significant investment and probably requires a few parties to justify the investment. It is not that simple."

Another major investment would be that of providing TV access, something which has been linked with Vodafone Malta in recent years but never materialised. "I wouldn't say that we are not going into any particular business. Today we are concentrated on the mobile and you can see it across the Vodafone operating companies in Europe."

Asked specifically about this possibility and talks with Sky Malta, a new company that has announced it will provide a TV access service in Malta, Vodafone Malta's CEO said: "I would say that we have been consulted but this is as much as I can tell."

Mr Berroeta kept on insisting on this focus on mobile communication rather than providing different services and not being good at all of them.

"I am not going to buy a very bad mobile service because they give ma a €1 discount on my TV subscription and then I have to put up with a very bad mobile service. Mobile service today has become a mission critical product for our customers. When the mobile phone does not work, the customers really have problems because its needs to work 24/7. This requirement is what really has made Vodafone excel in terms of service and this is a requirement that consumers may not have on other products. People coming from TV or broadband usually fail on this service."

This year Vodafone Malta celebrates its 20th year of mobile services in Malta. It was the first Vodafone subsidiary outside the UK. What did Malta give to Vodafone and what did Malta get in return from the company?

"An international company like Vodafone sees Malta as a place to invest and I think this is an important contribution by Vodafone to the Maltese economy. Secondly mobile telephony developed by Vodafone has allowed other businesses in the country to improve their productivity and now you can see that the penetration in Malta is similar to Europe.

"If you compare the mobile infrastructure that we have in Malta to the one in Germany I would say that they are at the same level and I would say that in part it is because of Vodafone. For Vodafone, Malta was like a proof of concept that was later brought into other countries. During the years we have used Malta to see how the introduction of certain products affects the market."