The Malta Communications Authority (MCA) should not just be a regulator of the local telecommunication services but also a facilitator and a motivator, according to Edward Woods, the authority’s chairman appointed last year.

In an exclusive interview with i-Tech, Dr Woods shared his vision for the authority and the major issues it has to deal it as part of its remit, such as the adoption of e-commerce, the new 4G mobile communication services, next generation internet based on fibre technology, a review of the current telecoms regulatory framework by the EU which will have to be also adopted by Malta, regulating the use of precious wireless frequencies locally, giving consumer support and making sure they get value for money, promoting digital skills, and just keeping up with the relentless technological developments.

“The MCA’s role should not, to my mind, be limited to that of a regulator, albeit that this is its main function. The MCA should assume further responsibilities as a facilitator and motivator while safeguarding consumers’ rights. Most of these roles are already provided for in the Malta Communications Authority Act; others need legislative intervention. This will ensure that Malta’s electronic communications networks and services constantly support Malta’s ambitious goals in this regard,” explained Dr Woods.

He sees the future of the telecoms industry remaining a very exciting one. Data and the internet will continue to be game changers for some time; mobile broadband will continue to grow, enabling new levels of connectivity; cloud computing will continue to disrupt traditional business models bringing entirely new opportunities for consumers and operators; home entertainment, especially HD (high definition) on demand video, specialised services such as CCTV and music will continue to drive the need for fast broadband.

“Most of all, we are entering a new age of convergence of the telecommunications, media and information technology sectors which is set to transform our industry. The future holds many unknowns but one certainty remains: this industry will remain at the core of social and economic development locally and globally.”

The situation in Malta provides both opportunities and challenges since EU-wide reports and surveys put Malta in the top half in terms of quality and adoption of communication services among EU member states.

“One of the greatest challenges for service providers and network operators is the need for constant investment in their service offerings and their networks, as well as adapting their business models to cater for emergent technologies. The financial crisis we have seen in the last few years has been a challenge in itself for the telecommunications sector, as this sector does not exist in isolation and certain ramifications of this global economic downturn had to be factored in by the sector. The anticipated growth in the use of mobile data, while being an encouraging trend, presents its own mix of opportunities and challenges and I am pleased to say that the local industry is very proactively seeking to capitalise on this phenomenon using a mix of solutions.”

Indeed Dr Woods confirmed that Vodafone has already launched its new 4G mobile communications service when it had originally intended to do so this year.

“Our role is to create the right environment for investment in the industry and to facilitate the roll-out of such new technologies. We can, therefore, only look upon this development as a positive one for the telecoms sector and for Malta as it opens up new opportunities and gives the mobile industry a whole new dimension. Hopefully, further investments by the providers will be announced in the coming months.”

Another major development expected locally is the launch of fibre-based ultra-fast internet access services, also referred to Next Generation Access (NGA) or fibre-to-the-home (FTTH). The authority’s chairman revealed that they have been closely monitoring this area and developments are expected soon.

“The MCA’s regulatory remit includes, among other things, assessing whether specific electronic communications markets are effectively competitive, in line with EU recommendations. The MCA has found Go as having significant market power in the wholesale physical infrastructure access market, which also includes fibre-to-the-home. Consequently, the MCA has mandated access to interested service providers which could then compete in providing broadband products at the retail level. The access obligation is on Go’s copper network, but also extends to the fibre equivalent – as and when this is rolled out.

“Only recently, the European Commission published a new recommendation on the application of obligations, including new parameters, which aims to promote competition and enhance the broadband investment environment. It will take some time to work out the technical parameters and economic aspects that will characterise Go’s offer to third parties. The MCA is in the process of establishing these parameters and will consult with stakeholders on the matter when a model for a formal offer has been drawn up.

“The authority also has a role in ensuring that there are no regulatory or administrative burdens hindering the roll-out of electronic communications networks and is working at addressing this in conjunction with Transport Malta in terms of all the physical works that need to take place when a new network is rolled out. Coordination between the state entities will be essential to ensure a fast and efficient roll-out.”

Dr Woods admitted that e-commerce in Malta is gaining strength but at a much slower rate than other sectors. It must be noted, however, that with regard to companies selling online, we are in line with the EU average of 14 per cent.

“For our local retailers, taking their business online means being ready to face the aggressive competition present in the online world. To succeed in this environment one needs to have a business model that ensures the lowest possible operating costs and prices coupled with excellent customer service.

This is inevitably a difficult challenge for small enterprises, but many have proven that with creativity and innovation such challenges can be successfully overcome and that the rewards can be very significant. The MCA is currently assessing all the challenges currently being faced by local retailers with a view to developing a series of actions aimed at addressing these, to the extent possible.”

A major contribution of the MCA is in the development of the national ICT strategy for a Digital Economy for the period 2014-2018 together with the Malta Information Technology Agency (MITA). This will be published in the coming weeks and will focus on three primary themes: Digital Citizen, Digital Business and Digital Government. Each theme will be supported by a number of actions for the realisation of the strategy.

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