Updated Thursday 9am with GO reaction:

GO today said it hoped that the regulators reviewing the proposed merger between Vodafone and Melita announced earlier today would safeguard competition.

GO today said it hoped that the regulators reviewing the proposed merger between Vodafone and Melita announced earlier today would safeguard competition.

It said it would participate “fully” in the consultation process to ensure that competition was not threatened by the creation or strengthening of a dominant position.

The merger will need the clearance by the Malta Competition and Consumer Affairs Authority (MCCAA), which is expected to be give before the end of the year.

Melita CEO Harald Roesch

“As GO has already stated following initial reports about this possible merger, the company understands the desire of other operators to consolidate their position in the Maltese market. While GO is well placed to face such developments, it is naturally important that a fair competitive and regulatory environment is maintained primarily for the benefit of consumers in Malta but also for operators such as GO which continues to make very significant investments in the national telecommunications infrastructure,” it said.

Vodafone CEO Amanda Nelson said:

“The merger would get the best of Vodafone’s 4G service with the best of Melita’s cable and broadband, while also offering television,” she said. “This means customers who increasingly want a bundle of all four services will be able to choose between two offerings.”

Customers who increasingly want a bundle of all four services will be able to choose between two offerings

She also said that competition nowadays no longer came from rival companies but from services – like WhatsApp and Skype – which offered an often free alternative.

“The number of operators is no longer as relevant,” she said, noting that investment in 5G would not have been sustainable for three different networks.

The merger would see Vodafone keep 49 per cent of the shareholding while Melita shareholders Apax Partners and Fortino Capital would keep 51 per cent and also appoint its CEO, Harald Roesch, as the head of the new company.

Mr Roesch said that in the year since he had taken over considerable emphasis had been placed on the customer experience.

“We were aware of Melita’s reputation but we believe that customers will have noticed the difference in the past months. We now have the fastest call centre response time in Malta,” he added.

Update:

GO took umbrage at Ms Nelson's comment about the fact that customers who want all four services – television, fixed line telephony, mobile and broadband – "could only get it from GO.’’ It noted that Melita has - for a number of years - offered 4P ‘quad play’ service bundles, adding that recent MCA figures confirm that Melita have 99,000 mobile subscribers, equivalent to a 17 per cent market share. 

It also disagreed with her comment that the number of operators was no longer as relevant. "The number of operators is actually very relevant, in fact fundamental for competition. Experience in various markets in the EU, including the UK and the Netherlands, has in fact shown that the relevant authorities have looked very closely, and critically, at proposed mergers and acquisitions. This happened even when there would have been a reduction from five to four operators or from four to three operators. The proposed merger in Malta would reduce the number of operators from three to two hence the importance of conducting a fair and transparent evaluation in line with EU & Maltese merger law.

"The proposed merger in Malta would reduce the number of operators from three to two hence the importance of conducting a fair and transparent evaluation in line with EU & Maltese merger law."