Melita, the TV, internet and telephony group, is to launch its mobile phone arm with nationwide coverage in February, chief operations officer Stephen Wright said.

Promising a "cheaper, simpler and better" alternative, Malta's third mobile operator kicks off services for internal customers and partners on December 19 after a €40 million investment and a recruitment drive for 100 new staff.

"The launch of fully-fledged, nationwide mobile services is the next huge milestone for Melita," Mr Wright told The Sunday Times.

"There exists an expectation that Melita Mobile will be cheaper. It will be cheaper, better and simpler. In two weeks, Melita Mobile will have a population of more than 400 people, their families and friends acting as Melita Mobile ambassadors will spread the word that our customers have a lot to look forward to.

"We will pass on considerable savings to all our mobile customers. Over and above, they also save more money for using all our four services. Our unique single-bill service will be extended to include mobile usage. No other organisation offers this facility. This is the power of a true quad-player."

Asked whether a post-Christmas launch will dent Melita Mobile's initial targets, Mr Wright says customers should wait before committing themselves to other providers.

"At Christmas people shop for gifts," he remarks. "However, service is a different story. Our research shows users are fed up of paying expensive monthly phone bills. Our advice is - keep your options open. We are in this for the long-term and our promise to be cheaper is a long-term commitment."

Malta's mobile market is painfully small and Melita takes on global player Vodafone, and Go, a firmly established quad-play operator, both offering a wide range of products and services. Pressed on how Melita intends to compete, Mr Wright says customers will opt for the cheaper reliable service.

"Most people don't know the rate per minute they pay for their mobile calls because price structures are a labyrinth," Mr Wright explains. "The long-standing duopoly between Vodafone and Go has been charging mobile users expensive rates, which are confusing. At the moment, there is no cheaper alternative to them.

"Melita is the only fully-integrated quad player in Malta. It's not just the brand that is integrated, but the billing of all services is centralised in one system. This will enable us to issue one bill for all four services and, more importantly, we will be in a position to apply discounts across the board. We will also be in a position to offer integrated promotions."

He adds Melita is one of the few quad players in the world to have four services on a cable infrastructure, making the company a pioneer in cutting edge application of technology.

Melita has also invested in a series of customer contact points and is to open eight new stores in the next few months. The first two open in Naxxar and Msida within days. Stores in Valletta and in Gozo will offer all mobile-related services in addition to TV, internet and telephony services. Melita has also signed agreements (including numerous exclusive contracts) with over 1,200 shops around the country to sell Melita services. A similar deal has been signed with Malta Post.

Mr Wright says prospective Melita Mobile subscribers may start to book preferred numbers at www.melita.com or at Melita stores immediately. Melita is also facilitating the transfer of data to Melita Mobile SIM cards through equipment at Melita outlets.

He would not be drawn into the targets Melita has set itself for its first year of operation but his confidence is unshakable.

"We are confident that in our first few years, we will attract a substantial customer base by eating away at the competition's market share and by attracting new entrants to the market. The price shake will rock the market.

"This is the first time in Malta's history that mobile users will receive the true benefits of the liberalisation in the telecommunications market," Mr Wright points out. "Mobile users are paying among the highest rates in Europe. Some even feel they are being cheated. It comes as no surprise that SMS usage is very high because it is a cheaper alternative to voice calls."

Most analysts believe Malta's mobile telephony market to be saturated. Why does Melita think differently?

"Saturated with the highest mobile prices in Europe - that's more correct," Mr Wright insists. "If people have a reliable mobile provider offering good mobile services, cheaper and more transparently, then they will definitely consider the switch. We have already seen this in the fixed-line market.

"Melita is present in 38 per cent of households in the fixed-line market - over 50,000 fixed-lines, in just two years. The same trends are likely to happen in mobile communication."

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