The Malta Communications Authority has finalised the process of re-assigning frequencies in the 900 MHz and 1800 MHz bands, with Melita Mobile making a significant step forward in getting access to frequencies previously held by the incumbent operators.
In real terms this should not affect the end user, though Melita said this exercise will help it provide a better service.
The process had to be done as a result of the expiry of the licenses for the use of the frequencies in the 900 MHz and 1800 MHz ranges for GSM mobile telephony. Besides these frequencies, the 2.1 GHz range is also used for UMTS 3G mobile communication but this was not included in the exercise as licenses to use this range have been issued with the launch of 3G in Malta a few years ago and were not approaching the expiration date.
The MCA received applications from Vodafone, Go and Melita Mobile. Vodafone and Go were interested in retaining frequencies for their commercial services while Melita was applying for the first frequencies in the 900/1800 MHz ranges since it had only been licensed for the 2.1 GHz until now.
The Authority explained that the three applicants passed the qualification stage and demand for spectrum exceeded supply. Therefore in line with the procedure established in the call for applications, the Authority held brokered meetings with the three applicants and subsequently put forward proposals for the assignment, which were accepted by all the applicants. This was a new process and in the event the brokers meetings were not successful the MCA would have resorted to an auction of the frequencies.
Melita will get a channel in the 900 MHz band, while both Vodafone and Go will get three channels each. In the 1800 MHz band, Go will get four channels and Vodafone five.
These companies will have to pay the Maltese government €224,000 for every 5 MHz block.
“This is the first time that spectrum, already assigned and in use by local operators for the provision of mobile services, had to be reassigned due to the fact that the respective licences were coming to an end,” said Philip Micallef, the MCA executive chairman.
“We had to be extremely meticulous in the proceedings because the spectrum in question underpins the delivery of mobile services to hundreds of thousands of subscribers. The mobile sector is one that has continuously evolved over the years. We no longer associate this sector with telephony – it goes well beyond this to include a whole plethora of communication services such as access to the internet, e-mails and instant messaging. Playing an essential part in the provision of such services, issues of spectrum are always complex and very taxing on the MCA resources. However, in this case we have seen that cooperation leads to results.”
The MCA was obliged to issue a call for applications to re-assign the frequency bands as the rights of use of these frequencies enjoyed by Vodafone Malta and Go, between them sharing around 90 percent of the mobile communications market, expired last year. These were extended for a few months until the new frequencies were assigned.
The call for applications was not restricted to the incumbent operators and indeed new operators could have applied. However, the local mobile market is considered very well-served by three national mobile network operators, the third one, Melita Mobile, launching in February 2009.
One of the original rights-holder, Telepage, did not re-apply for frequencies. In reality, it never provided mobile voice services.
Following the announcement of the assignment of the frequencies, Melita commented that this will enable it to further improve indoor coverage, especially in places with thick walls or very dense development.
“The assignment of spectrum within the 900MHz band is an important achievement for Melita Mobile as this brings us on a more level playing field with our competitors. Through investment that will follow, we will be able to complete our coverage plan and enhance our indoor coverage in areas which are otherwise difficult to reach”, commented Andrei Torriani, CEO at Melita.
According to the latest Communications Market Review published by the MCA, at the end of 2010 the three national mobile operators had the following market share: Vodafone Malta 47.88 per cent, Go 41.93 per cent and Melita eight per cent. When Melita started operations in February 2009 it took market share from Vodafone and Go. As a result, Vodafone lost the status of absolute market leader. The small mobile virtual network operators (MVNO) like Redtouch Fone and Ping use the infrastructure of a national operator and do not have their own frequencies.
While the re-assignment of mobile frequencies shows the commitment of Vodafone, Go and Melita in mobile communications, this by no means limits the operator’s diverse interests. In an interview with i-Tech a few weeks ago the new Vodafone Malta CEO, Balesh Sharma, revealed that his company is very interested in fixed fibre-optic data connections. On the other hand, Go is busy testing its fibre-based HD TV service while Melita has announced the fastest internet broadband access for home users in Malta.