Liberalise Today

The Malta Independent

Liberalise` Today

Liberalisation of the telecommunications sector is overdue. Technological developments` render the monopolies given to Maltacom and Vodafone until 2010` clearly unsustainable.

Liberalisation should in any case precede any privatisation plans for Maltacom and consequently Government`s policy for liberalisation` is being promised with monotonous regularity. Indicated target dates for announcement of the said policy are being sadly missed with the same repetitive monotony.

It is the sole prerogative of the Government to establish its policies for liberalisation of the telecommunications sector and existing contractual or license obligations cannot be allowed to come in the way of establishment of a sane policy for liberalisation.` If anything such matters such be resolved either through bilateral agreement` or where this is not possible by reference to arbitration. But liberlisation must proceed. And any licenses given in a liberalised environment must be much shorter than the 20 years originally given to Telecell in 1988. Twenty years is eternity in this fast moving sector.

In promulgating its policies for liberalisation,` Government must take steps to ensure that the exercise is fair and transparent and that the schedule for liberalisation is not structured in a way to give advantage of grabbing of market share ahead of liberalisation to any of the would be contestants.

Unfortunately this is exactly what is happening.` By approving Vodafone`s request for rate reduction whilst withholding Maltacom`s application for frequencies for its mobile service,` Government is playing unfair to a company of which it is still 60% owner. It is exposing itself to criticism that it is favouring private sector operators who are in a better position to continue showing appreciation even beyond the expiry date of the political incumbent`s term of office. Following the disastrous experience of Mid-Med Bank`s privatisation this represents a bad omen for the next one.

Government`s policy for liberalisation of this crucial sector has to be firm, transparent and fair. It is also urgent.` It has necessarily to take into account of who is going to bear the cost of carrying, retraining, and re-deployment of excess labour resources which would otherwise deprive Maltacom from the possibility of fair competition in a liberalised market.

If Maltacom is expected to compete without addressing these issues than clearly the liberalisation is meant to condemn Maltacom for a slow death and the country to painful and expensive` industrial unrest.` It might even compel me to organise the private shareholders of Maltacom in an Association to defend their interest with the same vigour as I did for the private shareholders of Mid-Med Bank.

Alfred` Mifsud