Wider use of electronic gadgets and the emergence of online multimedia services last year pushed the demand for high-speed internet to an all-time high, the communications watchdog said in its 2014 annual report.

The Malta Communications Authority said rapid progress had been made in laying down another submarine cable, which would boost the island’s international connectivity.

The other side of the coin is that traditional forms of communication such as fixed-line telephony, traditional mail and even pay TV experienced a decline in popularity. In 2014, one in every three households had access to high-speed internet by cable or DSL.

Last year broadband subscriptions increased by 8,500, reaching a total of 151,500. Consequently Malta’s broadband penetration rate rose above the EU average and stood at 31 per cent.

Significantly, the greatest growth was registered in the number of users having download speeds between 30Mbps and 100Mbps, with an increase of 27 per cent or 45,000 subscribers. This segment now makes up 55 per cent of the fixed broadband market.

Last year Malta’s broadband penetration rate rose above the EU average

The trend towards faster web speed was also reflected in the mobile telecommunications sector, which provides mobile internet access through third (3G) and fourth generation (4G) technologies. In 2014, an additional 34,000 individuals were hooked up to the internet through their smartphones and tablets, an increase of 19 per cent over the previous year.

This meant that one in every three mobile users (36.3 per cent) accessed the internet at some time or another.

Last year, active mobile subscriptions dropped slightly to 546,214 since one of the operators disconnected a number of inactive subscribers.

The report said the number of mobile calls per user increased by almost seven per cent compared with 2013, to a total of 939 per user – which equates to about three calls a day.

On the other hand, traditional fixed-line telephony continued to lose popularity as the number of calls per user fell by 8.1 per cent to around 713 – just two calls each day on average.

Mobile voice calls are also getting longer, and the number of minutes spent on mobile phones increased by 8.2 per cent, whereas fixed-line call length dropped by 6.1 per cent – reflecting the downward trajectory of mobile call cost.

In 2014, the use of short text messages (SMSs) continued to decline, from 90 per month per user in 2013 to 77. This drop probably reflected a combination of instant messaging or the ease of making a short call, rather than sending a text message.

Meanwhile the direct intervention of the European Commission forced operators to slash roaming tariffs, which had a considerable impact. In 2014, there was a 20.4 per cent rise in the number of calls made by local subscribers from a foreign country. The MCA report shed light on the way in which the internet is affecting other sectors.

For example, last year, television subscriptions declined by 1,025 – most likely as a result of the increase in popularity of internet TV and online video services.

Postal mail volumes were also down 11 per cent compared with 2013, for both letters and bulk mail, although the latter was down by a smaller margin.

On the other hand the number of parcel mail items was up by 6.8 per cent, most probably due to increase in the popularity of on-line purchases.

The communications market at a glance