Telecommunications laws being updated

There are now three mobile phones for every two fixed line telephones, Communications Minister Censu Galea told parliament yesterday.

He was speaking about the development of the communications sector, particularly in the context of liberalisation, when the House started to debate a bill amending various communications laws.

The minister said that with 300,000 mobile phones in use, some 80 per cent of the people now had a mobile phone, one of the highest penetration rates anywhere.

Internet usage was also growing fast, with 77,000 current users.

Mr Galea said the bill would further facilitate liberalisation and pluralism while introducing new safeguards in areas such as regulatory obligations of dominant players, the rights of subscribers and the allocation and management of radio frequencies.

The Bill amended the Malta Communications Authority Act, the Telecommunications (Regulation) Act (which will become the Electronic Communications (Regulation) Act), the Postal Services Act, the Malta Maritime Authority Act, the Electronic Commerce Act and the Wireless Telegraphy Ordinance.

Opposition spokesman Leo Brincat said the opposition backed this bill and would vote in favour of it.

At the opening of his speech Mr Galea said the government viewed telecommunications as being of strategic importance. This bill was the fruit of experience gained in the past four years since the Malta Communications Authority Act was enacted and the process of liberalisation started.

The bill was also the result of advances in the communications sector, particularly electronic transactions, and the requirements of the Lisbon Agenda for competitiveness set by the EU.

Mr Galea outlined the development of the communications sector in Malta, saying that it now contributed some five per cent of GDP.

Telecommunications services were gradually converging and the distinction between one service and another was slowly disappearing. The bill aimed at tackling this situation as well.

This bill was the fruit of consultation with all the sectors involved. Indeed, a White Paper was published in February. The consultation process would continue before regulations were issued in the form of legal notices.

Mr Galea said the bill also proposed changes in the way licences were issued to organisations to engage in the provision of communications services and laid down how the market should be analysed.

Regulation had to be such that it did not hinder development. The rights of users to good service must be well safeguarded, and the bill sought to guarantee this as well. This would continue to keep Malta in the forefront of the international communications sector.

He said the Communications Authority was involving itself in new sectors of communications, including digital television and Voice Over IP.

He stressed that long-standing organisations needed to update their ways of doing business. Their advantage over newcomers would fizzle out if they did not do this.

Updating would also help to create new employment, in the best all-round interests of service provider, users and the country at large.

Mr Galea said enhancement of services was another aim of the bill. A look back at the last four years showed that Malta had taken full benefit from the latest changes for less cost.

Flexibility was essential, as was a clear legal position.

New technical expressions were another aspect that the bill sought to clarify and define.

This legislation must be in line with the EU position. This would ensure that changes under way would be at a par with those on the European and international levels.

Mr Galea said there would be changes in the functions of the MCA in the light of developments over the past few years.

With regard to the management of radio frequencies, the functions of the Wireless Telegraphy Department would now be integrated into the functions of the MCA, streamlining activities.

Mr Leo Brincat asked the minister to explain what reaction there had been to the White Paper issued in February and what representations were made. He had heard complaints that some more time had been required for them to consider this legislation - even though the government itself was somewhat late and this bill, aligning Malta with EU requirements, should have been in place by May 1. Indeed, had Malta not acted fast it could have been liable to EU penalties or reference to the European Court.

Having said that, it was worth noting that nine of what had been the EU 15 had actually been found not to have implemented sections of EU communications regulations.

The main aspects of this bill, he observed, was the setting up of a Communications Appeals Board which would hear appeals from decisions of the Malta Communications Authority.

Mr Brincat observed that as long as three years ago, the European Commission had criticised aspects of the Maltese regulatory framework, especially excessive ministerial powers such as powers to appoint the regulatory authority. The minister could also issue instructions to the regulator.

The commission had insisted that the government should not involve itself in the details of the operation of the MCA, and the budget of the authority should be independent of the government.

The commission had also noted problems that existed in Malta on separating the operational and regulatory aspects. It had insisted that the appeals board should be completely independent of politics.

The commission had insisted on transparency in the regulators' operations, and the issue of licences should no longer be "a frequent problem area". Refusal of licences should be rare, with the reasons being specified, clearly explained and subject to court remedy.

Mr Brincat said he felt the definition of "significant market power" in the bill should be clearer.

He insisted that administrative charges should not be a barrier to new entrants in the sector. He also felt that the four months allowed for the solution of disputes appeared too long and could be disastrous for small companies.

He also felt that despite the European Commission's warning, the minister would still have too much powers in the regulatory sector.

Mr Brincat said the issue of significant market power and access to broadband needed to be tackled with urgency.

It was also high time that Maltacom fell completely under the provisions of the Competition Act.

The debate continues today.