A busy year ahead for the communications sector

This year will be as busy as ever for the Maltese communication industry. We expect to see the completion of the digital TV switchover, the resurrection of the printed telephone directory, changes in regulations in line with the new EU telecoms framework, more power to consumers, the assignment of frequencies to mobile operators and further rationalisation of the precious wireless frequencies, the first steps towards the support of ultra fast broadband internet access to our homes over fibre optics and the support for competition by creating the right conditions for the entry of at least a third major broadband internet provider.

These developments are mentioned in the annual plan for 2011 and the strategic plan update for 2011-2013 of the Malta Communications Authority which has just been published.

In the strategic objective updates the MCA said the creation of the conditions for market entry of at least a third major broadband operator/service provider remains a priority for 2011. Right now the fixed broadband internet market is split between Go and Melita, with Vodafone holding a very small share through its wireless WiMax service.

The authority added that so-called “next-generation access” (NGA) groundwork also remains a priority in order to ensure long term continuity. Indeed the MCA will carry out a technical and economic analysis for a fibre-to-the-home infrastructure in Malta. It will continue to work towards facilitating the introduction of NGA networks from a regulatory standpoint, while ensuring that their coming into existence does not result in competition bottlenecks. The MCA will, among others, assess the benefits of the sharing of network elements, such as ducts and in-building wiring between operators.

While fixed-line broadband internet continues to grow, there is a parallel growth in the use of mobile devices. The MCA will this year finalise the process to reassign the frequencies in the 900 MHz band and 1800 MHz band used by mobile operators. These strategically important bands can be used for the provision of mobile broadband technologies such as GSM, UMTS (3G) and in the near future LTE and WiMax.

The authority added that it will continue to coordinate spectrum in the 470-862 MHz frequency bands with neighbouring countries with a view to increasing the potential of broadcasting and other services. These frequencies are used for digital terrestrial TV broadcasts and in the past there have been technical difficulties over the use of some frequencies resulting from Malta’s geographical proximity to Italy.

Indeed, digital terrestrial TV in Malta will undergo a major transformation this year as there will be a switchover from analogue to digital transmissions, to be completed by June 1. Maltese TV viewers who have enjoyed free local TV broadcasts from their rooftop antennas will have to obtain a digital decoder or a TV set with built-in digital capabilities to continue to watch local stations free of charge as from June 1.

This year the authority will designate an operator for the provision of a comprehensive printed and electronic directory, which would include all subscribers of publicly available telephone service providers. Following consultation the authority had decided that this printed directory can be considered a “universal service” and hence needs to be provided.

A significant number of objectives and initiatives to be undertaken by the MCA relate to customer service and the relation between service providers and their clients.

The MCA said it will implement measures this year to prevent significant disparities between consumers’ expectations of broadband performance and their actual experience. It will make information available on how end-users can make informed choices about the type of service they are likely to receive upon entering into a contract with a broadband electronic communication service provider (e.g. information on broadband speeds taking into consideration different technologies, information that should be made available to end-users at point of sale, and information to be provided on the providers’ website).

The MCA will carry out an exercise to provide consumers with tools to ensure that they are aware of the alternative suppliers and services, so that they can easily compare information on prices, features and quality and have the ability to switch (without unreasonable barriers, constraints and disruptions).

The authority will also review the current switching process that supports the consumers’ ability to switch from one provider to another while retaining their number or uninterrupted internet access. In addition, the new electronic communication rules require porting of fixed services (whilst keeping their phone number) within 24 hours or less. The MCA said it will work with the service providers to implement this facility where it is not already available.

The authority also said it will review the contractual obligations of all operators providing a connection to the public communications network and/or publicly available electronic communications services to ensure that they are providing their subscribers with clear and comprehensive contracts in line with the new regulatory rules. For example the minimum access line speeds in case of an internet service must not differ significantly from the marketed upper levels.

As far as e-commerce is concerned, the MCA said it will continue to address a number of tasks in its ongoing thrust to raise awareness and confidence in the use of e-commerce on the part of both the public and the commercial sector. It will seek to provide business with the necessary tools and infrastructure to enable the take up of ICT e-commerce solutions which will enhance the competitiveness of the Maltese industry.

Among other initiatives, the authority will participate in two projects funded by the EU. One relates to the identification of the ICT and entrepreneurial training needs for the Maltese labour force and the development of a training curriculum to address the skill gaps identified. The other project involves a best practice exercise in the use of e-commerce.