Cheaper international telephone rates offer sparks investigation

The telecommunications authorities are looking into the promotion of a new call centre offering cheaper international calls from premises in Valletta.

The Ziffafone centre is advertising cheaper international rates, when compared to those offered by Maltacom. The centre's rates range from 10 cents per minute for calls made to countries like the UK and Italy and 15 cents per minute for distant destinations such as Australia, the US and Canada.

Sources close to the government said that the telecommunications sector will only be liberalised as from January 1.

"Even so, as from January 1, companies offering such services would still require to apply and obtain a licence from the Malta Communications Authority."

The sources said that the authorities were now looking into the services being promoted by this call centre and would also be looking into their "legality".

Only last week MCA chairman Joseph Tabone spoke about the last phase of the liberalisation of telecommunications, which includes fixed line telephone and international calls, expected to take place as from January 1. He also criticised Maltacom for its exorbitant international rates.

Maltacom is also proposing to rebalance its tariffs, with proposals including higher local connection rates balanced by slashing international rates by 51 per cent.

Mr Tabone says that international rates needed to be revised because they were exorbitant, and the highest in Europe.

He described the present Maltacom international rates as "outrageous" and "a big disincentive to business".

However, Maltacom chairman Maurice Zarb Adami insists that the international rates were exorbitant only because they were subsidising local rates and that is why the company was after a tariff rebalancing exercise.